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Lucent Technologies and Qualcomm to Develop Wireless System Based on Third Generation Global Standard

– September 23, 1999 – FOR RELEASE: THURSDAY, SEPTEMBER 23, 1999

Murray Hill, N.J. Lucent Technologies (NYSE: LU) and Qualcomm Incorporated (NASDAQ: QCOM) today announced an alliance to commercialize a wireless technology that dramatically increases the capacity and data capabilities of Lucent's network equipment based on one of the fastest growing global digital wireless technologies, Code Division Multiple Access (CDMA).

Under terms of the co-development agreement, Qualcomm CDMA Technologies will provide the core chip and software to be incorporated into Lucent's CDMA base station equipment. The agreement anticipates field trials during the first half of 2000 using Lucent's Flexent® base stations and trial handset terminals. By highlighting the improved transmission rates, the trials will help accelerate the commercialization of wireless enhanced voice, high-speed data, video-on-demand, interactive e-mail and remote monitoring services to consumers around the world.

Lucent's CDMA base stations will be equipped with new channel cards incorporating Qualcomm CDMA Technologies' recently introduced CSM5000™ Cell Station Modem CSM™ while preserving existing radio frequency (RF) components. Trial terminals will be based on Qualcomm CDMA Technologies' latest mobile handset circuitry, the MSM5000TM Mobile Station Modem MSM™.

The announcement by Lucent and Qualcomm comes only weeks after formal adoption of the first global standard for third generation(3G) wireless systems. The technology being developed by the two CDMA leaders is called cdma2000 1XRTT, and is the first phase of the industry-approved IS-2000 3G standard which assures compatibility with today's commercial IS-95A and IS-95B cdmaOne™ networks. The IS-2000 standard adheres to the Global 3G CDMA specification agreed to by more than 40 wireless operators and manufacturers worldwide.

"With global CDMA subscriber growth exceeding 150 percent in the past year, our customers have aggressive deployment plans for this evolutionary 3G technology," said Bill Wiberg, president of Lucent's Wireless Network Group's cellular and PCS business. "We are confident that we will meet this challenge with Qualcomm as a key partner in our development and commercialization program."

"This collaboration is truly a win-win for us and the wireless industry," said Don Schrock, president of Qualcomm CDMA Technologies. "Our complete chipset solutions for 3G infrastructure and handset products, combined with Lucent's high-quality base station systems, will ensure faster time to market and a cost-effective transition to third generation CDMA services."

Qualcomm CDMA Technologies' CSM5000 infrastructure chip complies with cdma2000 1XRTT while doubling the overall capacity for voice users as compared with IS-95A CDMA systems. The CSM5000 chip exceeds the International Telecommunications Union's 144 kilobits per second (kbps) mobile data rate requirement for 3G systems by supporting 307.2 kbps on both the forward and reverse links. The CSM5000 integrates up to 32 simultaneous users, a four-fold increase over the previous generation CSM.

Lucent Technologies supplies mobile and fixed wireless communications systems that offer global service providers standards-based solutions for serving the information needs of consumers and enterprises. Headquartered in Murray Hill, N.J., Lucent designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, visit the company's web site at http://www.lucent.com.

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.

Qualcomm CDMA Technologies is the leading developer and supplier of CDMA chipsets, hardware and software solutions and tools with more than 50 million MSM chips shipped worldwide. The division supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers.

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