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Qualcomm Announces Shipment of the pdQ Smartphone to Israel

– September 22, 1999 – Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced an agreement to supply Pele-phone Communications, Ltd., the exclusive CDMA service provider in Israel, with the pdQ™ smartphone, the industry's first integrated CDMA digital phone and Palm Computing® platform-based organizer. Through Kalanit, a leading consumer electronics distributor in Israel, Pele-phone will be the first carrier outside of North America to launch the dual-mode 800 MHz digital/analog version of the pdQ smartphone as an integral part of its premium wireless communications services.

"Qualcomm's pdQ smartphone continues to lead the smartphone category with its powerful combination of the popular Palm Computing platform and wireless access using standard Internet protocols," said Dr. Paul E. Jacobs, president of Qualcomm Consumer Products. "The pdQ smartphone provides the Pele-phone customers with the most advanced communications tool that supports a rapidly expanding suite of specialized business and consumer applications."

"As the premium wireless service provider in Israel, Pele-phone is committed to offering our subscribers the most advanced CDMA products and services," said Zohar Ronen, director of handsets and accessories marketing for Pele-phone. "The pdQ smartphone's combination of crystal-clear voice quality with wireless Internet access and the Palm Computing platform is the type of advanced wireless product our customers expect and need."

"Kalanit, the leading distributor of consumer electronics in Israel, is proud to carry Qualcomm's pdQ smartphone," said Avi Mazor, president of Kalanit Group. "The pdQ smartphone provides all of the advantages of the Palm Computing based platform combined with advanced CDMA digital wireless telephony and places the resources of the Internet in a go-anywhere, handheld unit."

The CDMA digital pdQ smartphone supports standard Internet protocols, enabling end-to-end security for wireless applications. The pdQ smartphone maximizes CDMA wireless data capabilities to provide users with the ability not only to make voice calls, but also to keep track of appointments, catalog contact information, send and receive e-mail, access the Internet and receive alphanumeric pages, all from one device. Because the pdQ smartphone is based on the Palm Computing platform, more than 1,000 existing applications are available to users, including enterprise information management, contacts, scheduling and groupware, communications, and a variety of other business and personal applications.

Qualcomm's pdQ smartphone measures approximately 15.7cm x 6.7cm x 3.5cm. Weighing in at approximately 229 grams, the pdQ smartphone features a flip down phone keypad for easy call dialing and a large 160-by-240 pixel LCD touch screen for the display of information and data entry. Users can dial a number automatically by simply tapping on a contact name in their address book with the stylus. Data is input via Graffiti® power writing software developed by Palm Computing. For greater flexibility in data management, HotSync® technology allows users to transfer and synchronize information between the pdQ smartphone and a personal computer, including wireless synchronization of Lotus® Notes and Microsoft® Exchange data. The pdQ smartphone ships with a charging/synchronization cradle, lithium ion battery and a headset that enables users to talk on the phone while simultaneously using the PDA portion of the unit.

The pdQ smartphone includes three Qualcomm-developed applications for Short Messaging Service (SMS) alert management, email and web browsing. Qualcomm's unique SMS alert manager is fully customizable to launch the particular application with which it is associated automatically. For example, a voice mail alert will dial the appropriate voice mail number automatically to retrieve messages. Qualcomm's email application, pdQmail™, and Internet browser, pdQweb™, applications are downloadable for preview from the pdQ Web site at http://www.qualcomm.com/pdQ.

Pele-phone Communications, Ltd., the oldest and largest cellular carrier in Israel, serves nearly one million subscribers on Narrowband Analog Mobile Phone Service (NAMPS) and CDMA networks. Pele-phone is a joint venture of Bezeq, Israel's national telephone company, and Motorola. Pele-phone earned over three billion NIS (US$738 million) in 1998.

Kalanit Group Ltd, established in 1984, provides the Israeli market with marketing, distribution, support and training centers for leading computer hardware and software products. Kalanit staffs help desks for Microsoft, Hewlett Packard, and 3COM Palm Computing products and developed Hebrew-language versions of the Palm Pilot organizer. Kalanit is also a leading marketer and distributor of computer products through the largest chain of electronics stores in Israel. Kalanit Group includes over 450 employees and earned 160 Million NIS (US$40 million) in 1998.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; integrated CDMA chipsets and system software; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Headquartered in San Diego, Calif., Qualcomm is included in theS&PIndex and is a 1999 FORTUNE 500® company traded on the Nasdaq under the ticker symbol QCOM.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis, and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 27, 1998, and most recent Form 10-Q.

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Qualcomm and OmniTRACS are registered trademarks and pdQ, pdQmail and pdQweb are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. Palm Computing, Graffiti and HotSync are registered trademarks of Palm Computing, Inc., 3Com or its subsidiaries. All other marks are the property of their respective owners.

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