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Qualcomm's Sponsor-Supported Eudora Email Program Surpasses One Million Active User Mark

– September 26, 2000 – Qualcomm Incorporated (Nasdaq: QCOM), a leader in digital wireless communications and advanced electronic messaging solutions for the Internet, today announced that more than one million people have become active users of its desktop Eudora® email software in Sponsored mode since its introduction seven months ago. More than 85 percent of customers who have begun using the new Eudora, stay in free, full-featured Sponsored mode, which displays ads in the user interface. This means that Eudora software in Sponsored mode gives advertisers the opportunity to tap into Eudora's rapidly growing active user base and achieve millions of impressions daily - and each impression has a minimum 75-second duration while the user is active in the program.

"Today's media buyers are challenged to deliver a comprehensive media program that includes an aggressive and targeted Internet advertising component," said Jeffrey K. Belk, Qualcomm senior vice president and general manager of Qualcomm Eudora Products. "Eudora delivers quality time with the same million-plus audience day in and day out, making it a uniquely effective buy for advertisers struggling with how to make the most of their online media strategies."

"Eudora represents a very sticky environment, and we have been pleased with the performance and the customer acquisition that we have seen from our media plan with them," said Yonah Lloyd, vice president of business development for Net2Phone, a leading provider of voice-enhanced Internet communication services.

The number of active users in Sponsored mode has grown steadily since February when Qualcomm released Eudora 4.3, its first, free advertising-based email product. The one million user milestone was surpassed just days after the newest version of Eudora email software became available.

"In the week immediately following Qualcomm's release of Eudora 5.0, we saw a bandwidth jump of 800 percent due to the huge increase in downloads of the new version," said Earl Galleher, executive vice president of Akamai Technologies, Inc., Internet content delivery provider to Qualcomm Eudora Products.

More than One Million Attractive Users
A one million-plus user base puts the overall Eudora advertising capacity in the multi-million impressions-per-month category. In addition to offering media buyers measurable frequency and unprecedented message duration, Eudora email software provides targeted online advertising. Research indicates that Eudora email users:

  • Have twice the propensity to buy online as the average user of the Internet (39 percent buy online monthly);
  • Spend significant amounts of time in email every day (67 percent report spending 30 minutes per day or more in email); and
  • Are educated and affluent (30 percent have a graduate degree; 45 percent earn more than $50,000 per year).

Eudora in Sponsored Mode
Unlike other advertising vehicles available on the Web, Eudora's Sponsored mode enables advertisers to reach a large Internet audience in an exclusive viewing environment for a definite period of time without competing messages. Only one ad is displayed at a time to maintain a quiet and uncluttered environment; and because the Eudora software "knows" when a user is working in email, it displays ads for the specified period of time only while the email program is in active use - even when the user is in email off-line. Advertisers also have the ability to target groups of Eudora email software users based on key demographic criteria.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (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.

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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