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Qualcomm Updates Financial Guidance for the First Fiscal Quarter of 2005 Ending December 26, 2004

– December 21, 2004 – Qualcomm Incorporated (Nasdaq: QCOM) today updated its financial guidance for the first fiscal quarter ending December 26, 2004.

The following statements are forward looking and actual results may differ materially. Please see the description of certain risk factors in this release and Qualcomm’s reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.

Based on the current business outlook, we now anticipate first fiscal quarter revenues excluding the Qualcomm Strategic Initiatives (QSI) segment to be approximately $1.4 billion, the high end of our prior guidance. We now anticipate first fiscal quarter diluted earnings per share excluding the QSI segment to be approximately $0.26-$0.27. This estimate is based on the shipment of approximately 39 million MSM phone chips during the quarter.

On November 3, 2004, we estimated first fiscal quarter revenues excluding the QSI segment to be in the range of approximately $1.3 to $1.4 billion, an increase of approximately 12 to 23 percent year over year assuming application of the “New Method”1 of estimating royalties for the first fiscal quarter of 2004. We had anticipated first fiscal quarter diluted earnings per share excluding QSI to be approximately $0.24-$0.26, compared to $0.23 in the year ago quarter. We had estimated shipments of approximately 38 to 39 million MSM phone chips compared to 39 million in the prior quarter and 32 million in the year ago quarter.

Royalty reports from our licensees, received in the first fiscal quarter for CDMA products sold in our fourth fiscal quarter ended September 26, 2004, indicate sales of approximately 40 million new CDMA/WCDMA units compared to our prior estimate of approximately 41 million units. These royalty reports also indicate that the average selling price of new CDMA/WCDMA units was approximately $212, compared to our prior estimate of approximately $213.

“3G CDMA continues to grow worldwide at a rapid pace,” said Dr. Irwin Mark Jacobs, chairman and CEO, Qualcomm. “Reports from our licensees indicate that infrastructure sales were particularly strong in the September quarter. Driving these results were new deployments and phones and expansions to existing CDMA2000 1xEV-DO networks. In addition, WCDMA deployments continue and recent favorable results from Hutchison’s 3 service demonstrate that operators can leverage high-speed data, greater capacity and resulting lower costs to speed transition of subscribers to third- generation networks.”

“Clearly, this worldwide expansion of CDMA further demonstrates a growing confidence on the part of operators that data services represent a significant opportunity to increase average revenue per subscriber. The increasing capabilities offered by our segmented chipset roadmap are driving more features into wireless handsets such as higher megapixel cameras, multimedia and 3D gaming. At the same time, our integration strategy is enabling these features to be delivered by our chipset customers at a lower cost and faster time to market.”

On November 3, 2004, on a GAAP basis we estimated total Qualcomm revenues for the first fiscal quarter to increase year-over-year approximately 7 to 18 percent and total Qualcomm diluted earnings per share of $0.23-$0.25, including an estimated $0.01 loss per share attributed to the QSI segment. Based on the current business outlook, we now expect total revenues to be approximately $1.4 billion, the high end of our prior guidance. We now expect total diluted earnings per share of approximately $0.26-$0.27, including the QSI segment, which is estimated to be approximately breakeven.

Due to their nature, certain income and expense items such as realized gains and losses, gains or losses on derivatives and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.

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, California, 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.

Note Regarding Use of Non-GAAP Financial Measures
The Company presents financial information excluding the Qualcomm Strategic Initiatives (QSI) segment to facilitate evaluation by management, investors and analysts of its ongoing core operating businesses, including Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Wireless & Internet (QWI). QSI results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative measure of the operating and liquidity performance of the Company because it excludes the effect of fluctuations in the value of investments that are unrelated to the Company’s operational performance. The financial information excluding QSI should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Reconciliations between total Qualcomm results and results excluding QSI are presented on the Company’s web site at http://www.qualcomm.com.

Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of development, deployment and commercial acceptance of CDMA based networks and CDMA based technology, including CDMA2000 1X, 1xEV-DO and WCDMA, both domestically and internationally; our dependence on major customers and licensees; fluctuations in the demand for CDMA based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the Company has or may pursue; our dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; developments in current and future litigation, as well as the other risks detailed from time-to-time in the Company’s SEC reports.

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