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Qualcomm and Microsoft Announce Agreement to Enable Windows Media Streaming Capabilities for Wireless

Microsoft Windows Media Codecs Licensed for Qualcomm’s Qtv Solution

– September 23, 2004 – Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Microsoft Corporation (Nasdaq: MSFT) today announced that Qualcomm has licensed Microsoft® Windows Media® technology and will integrate the Windows Media Audio and Video codecs into Qualcomm’s Qtv™ video decoder solution. Consumers will be able to play back and stream Windows Media Audio (WMA) and Windows Media Video (WMV) content on wireless devices integrated with Qualcomm’s Qtv solution.
Support for this capability in the Qtv solution will be available in the first quarter of calendar 2005, beginning with Qualcomm’s MSM6250™, MSM6500™ and MSM6550™ Mobile Station Modem™ (MSM™) wideband CDMA (WCDMA) and CDMA2000 1x EV-DO chipset solutions.

“By enabling our Qtv solution to play content encoded with the high-quality compression efficiencies of Microsoft’s Windows Media, we are providing operators with access to new revenue opportunities through the deployment of rich multimedia services and our manufacturing partners with fully tested, fully integrated, differentiated solutions,” said Luis Pineda, vice president of marketing and product management for Qualcomm CDMA Technologies. “Qualcomm is fully committed to providing the industry with multimedia capabilities based on industry leading technologies such as Windows Media, and this agreement helps further that goal.”

“Microsoft is very pleased to work with Qualcomm to provide handset manufacturers new opportunities to offer consumers access to high-quality Windows Media content,” said Amir Majidimehr, corporate vice president of the Windows Digital Media Division for Microsoft. “This agreement enables us to work with a market leader in wireless to provide handset users access to a wide variety of digital content wherever and whenever they want.”

“The goal of this agreement between Microsoft and Qualcomm is that high-quality video on mobile phones will soon provide the streaming video experience consumers get with their high-speed wired connections at home,” said John Stratton, vice president and chief marketing officer
for Verizon Wireless. “The agreement also encourages developers to deliver more powerful multimedia applications, driving continued market acceptance for wireless streaming audio and video content and providing consumers new digital entertainment experiences.”

Qualcomm’s integrated Mobile Station Modem solutions will enable acceleration of Windows Media codecs to provide superior decoding performance and lower power consumption, resulting in an enhanced user experience. This agreement leverages the power of Qualcomm’s MSM chipsets with the flexibility of Microsoft’s Windows Media codecs to provide faster time-to-market for multimedia-rich wireless handsets.

Windows Media is one of the highest-quality, most secured and comprehensive digital media formats available for streaming and download-and-play applications. It is supported on more than 700 devices, from DVD players and home theater systems to car stereos and handhelds. The Windows Media Audio and Video codecs deliver virtually unmatched quality and compression at any bit rate, making them ideal for content delivery using wireless network data rates.

Qualcomm’s Qtv solution is a feature-rich software video decoder that enables mobile devices to stream, download and play back multimedia content. The Qtv solution is part of Qualcomm’s Launchpad™ suite of advanced multimedia, connectivity, position location, user interface and removable storage functionality, including Qualcomm’s gpsOne® solution, the world’s most broadly deployed assisted-GPS handset technology.

Qualcomm’s Multimedia Platform includes the MSM6100™, MSM6225™, MSM6250, MSM6300™ and MSM6500 chipsets — single-chip solutions that deliver engaging multimedia devices and applications to more market segments in every major wireless standard.

Qualcomm’s Enhanced Multimedia Platform, with support for all major air interfaces, includes the MSM6150™, MSM6275™, MSM6280™, MSM6550, MSM6700™ and MSM6800™ solutions — integrated chipsets that deliver increased processing capacity and lower power consumption to drive the global demand for 3G enhanced-multimedia products and services.

Qualcomm’s chipsets include access to Qualcomm’s BREW® solution. The BREW system enables the development and monetization of advanced applications and content, allowing operators and OEMs to differentiate their products and services and increase revenues.
Qualcomm’s chipsets are also compatible with the Java® runtime environment; J2ME™ can be built entirely on the chipset as an extension to the BREW solution.

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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 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 28, 2003, and most recent Form 10-Q.

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