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PacketVideo Joins with Qualcomm to Deliver Wireless Media to SmartPhones and Wireless Communications

– September 19, 2000 – SAN DIEGO -- September 19, 2000 -- PacketVideo Corp., the global leader in wireless media, and Qualcomm Incorporated (Nasdaq: QCOM) today announced that PacketVideo's wireless media software will be tightly integrated into a variety of Qualcomm's future products, beginning with the recently announced MSP1000™ (Mobile Station Processor 1000) system-on-chip and system software. This integration will offer mobile users of CDMA devices the richness of sight, sound, animation, and moving pictures.

"We have evaluated the leading MPEG-4 technologies in the marketplace and have determined that PacketVideo has the leading end-to-end wireless streaming solution available today," said Don Schrock, president of Qualcomm CDMA Technologies (QCT). "Our collaboration with PacketVideo represents our commitment to provide wireless device manufacturers with the most advanced CDMA solutions that will continue to accelerate the rollout of Internet-enabled products."

The agreement calls for the two companies to optimize and fully integrate PacketVideo's wireless multimedia software into Qualcomm's chipsets and system software. PacketVideo's software complements Qualcomm's Wireless Internet Launchpad™ suite of applications and software, which in addition to offering MPEG-4 support, enables a broad range of Internet-related products, applications and services, including advanced multimedia, connectivity, position location, user interface and removable storage functionality.

The initial Qualcomm product to offer PacketVideo's MPEG decoding software, the MSP1000 device, is expected to be available by the fourth quarter of 2000, and is designed to satisfy the needs of manufacturers who require high-performance processing capabilities, design flexibility, low cost and minimum power consumption. Through very fast-shared memory, the MSP1000 chipset interfaces with QCT's broad family of Mobile Station Modem (MSM™) chipsets for multimedia applications and third-generation (3G) services. By simply selecting a different MSM chipset from QCT's pin-compatible MSM roadmap, manufacturers can develop a variety of platforms with distinct feature sets, all from a single system design.

"We are pleased that Qualcomm, the world leader in CDMA technology, has selected PacketVideo as their provider for wireless multimedia technology," said Dr. James Brailean, president, CTO and co-founder of PacketVideo. "Together, our goal is to enable mobile users to access rich digital media on their mobile information devices much sooner than the market has anticipated."

PacketVideo's multimedia software platform is an end-to-end solution designed to provide encoding, transmission and decoding services that support all major digital wireless telephony standards in use today as well as next-generation wireless networks currently being developed. PacketVideo's platform is based on the MPEG-4 (Motion Pictures Expert Group 4) compression standard, which defines a common framework for encoding, transmitting and decoding multimedia content over error-prone communications networks. PacketVideo's products offer error-resilient technology that recognizes and conceals errors inherent in wireless networks, enabling mobile information devices to receive enhanced video image quality.

About Qualcomm
Qualcomm CDMA Technologies, a division of Qualcomm Incorporated, is a developer and supplier of CDMA chipsets, hardware and software solutions, and tools, with more than 115 million MSM chips shipped worldwide. QCT offers wireless position location technology by SnapTrack™, a wholly owned subsidiary of Qualcomm. QCT supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: Acer Peripherals, Inc., ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.

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 business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents which are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 80 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

About PacketVideo Corporation
PacketVideo is the global leader in wireless media. The company's MPEG-4 compliant encoding, distribution and decoding software enable content providers and carriers to deliver rich media, not just data, to mobile users over any digital wireless network. PacketVideo was recently included in the Red Herring 100 as one of fifty private companies whose products, services, or business models are most likely to change the world.

Founded in 1998, PacketVideo is based in San Diego, California, in the heart of "Telecom Valley." PacketVideo's investors include Credit Suisse First Boston, Intel Capital (Nasdaq: INTC), Nexus Group LLC, Philips (NYSE: PHG), Qualcomm Incorporated (Nasdaq: QCOM), Reuters Group PLC (Nasdaq: RTRSY), members of the Rockefeller family, Siemens Mustang Ventures, Sonera (HEX: SRA, NASDAQ: SNRA), Sony Corporation of America, Texas Instruments (NYSE:TXN), Time Warner (NYSE: TWX), and others. To learn more, visit www.packetvideo.com.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, 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 26, 1999, and most recent Form 10-Q.

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