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Qualcomm Announces Closing of Transaction Related to Pegaso Telecommunicaciones

– September 16, 2002 – SAN DIEGO - September 16, 2002 - Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the closing of the transaction in which Telefónica Móviles, S.A. acquired 65 percent of Pegaso Telecommunicaciones, S.A. de C.V., with the Burillo Group continuing to own 35 percent. As further announced by Telefónica, Telefónica and the Burillo Group have contributed their respective interests in Pegaso to a new entity that is owned 92 percent by Telefónica and 8 percent by the Burillo Group. This new entity now owns Pegaso and the four Mexican mobile telephony operators acquired by Telefónica during 2001, making this new entity Mexico's second largest mobile telephony operator covering the whole of Mexico.

As a result of this transaction, Qualcomm will receive approximately $525 million in cash within 60 days, of which Qualcomm will use approximately $140 million to acquire existing secured debt in Pegaso, upon which Qualcomm will then own secured debt in Pegaso amounting to approximately $480 million.

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. 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 timely and full performance by Pegaso and Telefónica of their respective obligations under the subject acquisition agreement and related agreements, 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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