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Qualcomm and Alcatel Enter into a CDMA Infrastructure Patent License Agreement

– July 16, 2002 – SAN DIEGO and PARIS -- July 16, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Alcatel (Paris: CGEP.PA and NYSE: ALA), a leading global supplier of telecommunications infrastructure, today announced that they have signed a CDMA equipment patent license agreement. Under the terms of the royalty-bearing agreement, Qualcomm has granted Alcatel a worldwide license under Qualcomm's CDMA patent portfolio to develop, manufacture and sell third-generation (3G) WCDMA (UMTS) and TD-SCDMA infrastructure equipment.

As part of the agreement, Alcatel has granted Qualcomm a royalty-free, worldwide license under Alcatel's patent portfolio to develop, manufacture and sell semiconductor components for incorporation into wireless CDMA and multimode CDMA equipment.

"Qualcomm is pleased to license Alcatel, a premier worldwide equipment manufacturer to develop, manufacture and sell WCDMA and TD-SCDMA wireless infrastructure products using Qualcomm's patents," said Steve Altman, president of Qualcomm Technology Licensing. "This agreement further validates the strength of Qualcomm's patent portfolio and applicability to WCDMA, also known as UMTS, and TD-SCDMA."

"This license strengthens Alcatel's leadership position as an enabler of mobile data and 3G CDMA wireless services," said Marc Rouanne, president of Alcatel's Mobile Networks activities. "We are now, more than ever, well positioned to provide mobile operators with field-proven 3G solutions with everything in place, from UTRAN, Core network, ATM switches to Open service Platform and Software solutions."

Alcatel's UMTS radio infrastructure (UTRAN) offering is developed and produced by Evolium SAS, the joint venture between Alcatel and Fujitsu. This joint venture leverages Alcatel's expertise in GSM, GPRS and EDGE as well as in ATM and IP technologies, and combines it with the advanced experience of Fujitsu as supplier of NTT DoCoMo, which has a commercial UMTS network in service since October 2001.

Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.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 business areas include CDMA chipsets and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; QChat™ push-to-talk technology; 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 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 30, 2001, and most recent Form 10-Q.

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