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Qualcomm Unveils the QDEC 1000 Decoder: the Core of Digital Cinema Theatre System

– October 31, 2001 – SAN DIEGO -- October 31, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the unveiling of the QDEC 1000 decoder, which forms the core of a digital cinema theatre presentation system. The QDEC 1000 decoder is the first cinema-quality product to offer the enhanced security of simultaneous decryption and decoding. In addition, the QDEC 1000 decoder offers image and audio stream synchronization and formatting necessary for a digital cinema theatre system processor. The QDEC 1000 decoder uses industry-standard interfaces with an open architecture to enable rapid integration with off-the-shelf digital cinema servers. Purchase of the QDEC 1000 decoder from Qualcomm includes all necessary licenses under Qualcomm's intellectual property for use of the product for digital cinema systems. No separate license, royalty or license fee is required. A complete QDEC 1000 developers' package, available at no cost, will enable third-party developers to easily integrate the decoder into digital projectors or servers.

"The QDEC 1000 decoder underscores Qualcomm's commitment to deliver superior technology solutions for the entertainment industry in an open-architecture environment," said Jon Korecki, senior director of business development for Qualcomm Digital Media. "We are pleased to advance the state of digital cinema with the first solution to offer simultaneous decoding/decryption in a single device."

The QDEC 1000 decoder implements Qualcomm's ABSolute™ image compression technology, a high-resolution technology enabling cinema-quality, digital programs to be decoded in real-time. The high level of integration is made possible via a single chip, allowing image and audio decoding to be performed inside a digital cinema projector, further protecting against theft of digital cinema programming. Qualcomm's ABSolute image compression technology is highly efficient in reducing the amount of digital information needed to represent high-quality digital images by as much as 35 times or more, reducing storage and bandwidth required for transmission. The QDEC 1000 decoder is capable of outputting image resolutions of up to 2560 x 1080 pixels, which is higher than high definition resolution, at full 10-bit 4:4:4 color component sampling.

Using the ABSolute compression technology, a typical two-hour long digital cinema movie requires only about 40 Gigabytes of storage and can be transmitted in real-time to theatres using standard satellite or other high data rate transmission systems. The ABSolute technology divides a digital image into regions, or 'blocks,' that vary in size from 2x2 to 16x16 pixels. Each block is then transformed to the discrete cosine transform (DCT) domain and processed to reduce the image bit rate without reducing the image quality.

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 CDMA chipsets and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; Eudora® e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress®. Qualcomm owns patents that 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 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 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 (including without limitation express and/or implied statements regarding the ease of integration and industry acceptance of the QDEC 1000) that are subject to risks and uncertainties, including the ability of the Company to market and sell the product, the ability of third party developers to integrate the decoder into digital projectors or servers, 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 24, 2000, and most recent Form 10-Q.

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