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American Airlines and Qualcomm Complete Test Flight to Evaluate In-Cabin Mobile Phone Use

Proof-of-Concept Event Highlights Safe and Reliable Mobile Phone Technology Using CDMA on a Commercial Aircraft

– July 15, 2004 – Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and American Airlines, the world’s largest carrier, today successfully demonstrated in-cabin voice communications using commercially available CDMA mobile phones on a commercial American Airlines aircraft. Through the use of an in-cabin third-generation (3G) “picocell” network, passengers on the test flight were able to place and receive calls as if they were on the ground.

The proof-of-concept demonstration flight originated out of the Dallas/Fort Worth International Airport. During the approximate two-hour flight, passengers were able to place and receive phone calls and text messages on their mobile phones. Passengers included members of the media and government representatives.

A small in-cabin CDMA cellular base station on the plane, that uses standard cellular communications, was connected to the worldwide terrestrial phone network by an air-to-ground Globalstar satellite link.

The information gathered during this proof-of-concept demonstration flight will be used to further research into the quality, convenience and safety of communications with personal CDMA mobile phones carried by passengers on a commercial aircraft.

“We are pleased to have worked so closely with American Airlines to complete this proof-of-concept demonstration for the in-flight use of 3G CDMA technology,” said Dr. Irwin Jacobs, chairman and CEO of Qualcomm. “Together, we have anticipated the future needs of wireless subscribers in the airline industry and are aggressively driving the delivery of innovative solutions to meet those needs.”

“Today, American Airlines and Qualcomm showcased their strength as technology pioneers and market leaders in their respective industries,” said Dan Garton, executive vice president of marketing for American Airlines. “American is committed to researching and providing innovative, cutting-edge products and services that enhance our passengers’ traveling experience and give our customers what they value. Even though commercial availability of cell phone use in flight is approximately 24 months away, American Airlines knows that our customers want to stay connected and this proof-of-concept event is an important step in bringing in-cabin wireless services to our customers.”

As a leader in technology, American Airlines continues to explore communication solutions that include broadband wireless connectivity and cellular communication.

Qualcomm is well positioned to lead the research and development of mobile phone solutions while continuing to work closely with the aviation industry to ensure the use of safe and reliable communications within aircraft cabins. The Company brings a deep understanding of and extensive experience in developing CDMA technology to research and participation with aviation standards groups, such as the Radio Technical Commission for Aeronautics (RTCA), and regulatory bodies, including the Federal Communications Commission (FCC) and Federal Aviation Administration (FAA).

American Airlines is the world’s largest carrier. American, American Eagle and the AmericanConnection regional carriers serve more than 250 cities in over 40 countries with almost 4,200 daily flights. The combined network fleet numbers more than 1,000 aircraft. American’s award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the one world Alliance.

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 the S&P 500 Index and is a 2003 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, develop the product discussed, the extent and speed to which such products are accepted in the market, 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 28, 2003, and most recent Form 10-Q.

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