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Qualcomm Acquires nPhase, Leading Provider of Machine-to-Machine Solutions

Acquisition Strengthens Qualcomm’s Leadership in Machine-to-Machine Market by Enhancing Support for Fixed Assets

– November 16, 2006 – Qualcomm Incorporated (Nasdaq: QCOM), a leading provider of business-to-business wireless enterprise applications and services, today announced that it has acquired Chicago-based nPhase LLC, a leading provider of machine-to-machine solutions that allow enterprises to manage and monitor widely dispersed, fixed machine assets. The acquisition of nPhase helps reinforce Qualcomm's leadership position in the evolving machine-to-machine market.

Machine-to-machine telemetry is an evolving category of business activity that defines the interconnecting of machines with IT infrastructure and mobilized work forces. Machine-to-machine solutions allow enterprises to manage and monitor business-critical machine assets within two categories: fixed machine assets, such as cellular towers, gas pipelines and assembly line robotics; and mobile assets, such as truck fleets, heavy equipment and transportation. nPhase's fixed-asset machine-to-machine technology, experience and established customer base complement Qualcomm's success in the mobile machine-to-machine market and will increase both the breadth and depth of Qualcomm's enterprise machine-to-machine solutions portfolio.

“We are excited to add the complementary skills and technologies that nPhase brings, and this acquisition clearly shows our belief in this evolving industry,” said Joan Waltman, president of Qualcomm Wireless Business Solutions. “Qualcomm views this acquisition as a gateway to a new area of wireless communications and machine intelligence, which also holds additional benefits for our current markets.”

Machine-to-machine solutions offer significant new opportunities for businesses across major industries to compete more effectively by increasing an organization's service levels, performance and competitiveness. This is achieved by allowing users to access information, receive alerts regarding critical situations, and control and manipulate situations on their dispersed machine assets via a computer or mobile computing device.

Wireless machine-to-machine telemetry is part of the concept of smart services, in which intelligence, awareness and connectivity are built into products for a variety of industries, including transportation and logistics, industrial and commercial manufacturing, healthcare, agriculture and food service. The products communicate back to the enterprise's machine-to-machine network hub via the Internet and report important information such as utilization, maintenance requirements, asset health and other variables.

Qualcomm has been a leader in machine-to-machine technology since 1991 when it introduced the first wide-area, wireless machine-to-machine applications offered with OmniTRACS®, the Company's first mobile communication system for transportation fleet management. The OmniTRACS system, like other Qualcomm enterprise-class systems, communicates important information about assets that clients can use to improve productivity, increase revenue and enhance customer service. nPhase specializes in fixed-asset telemetry, a complementary area of technology.

“This acquisition is an important step for nPhase and Qualcomm because both companies appreciate the significance of this evolving industry and each company brings expertise and insight, that when combined, will provide better solutions for the marketplace,” said Steve Pazol, president and CEO of nPhase, LLC. “We look forward to being part of Qualcomm in offering machine-to-machine solutions to customers around the world.”

nPhase will continue to offer products and services under its own brand. Terms of the acquisition were not disclosed.

Since 1988, Qualcomm Wireless Business Solutions (QWBS) has provided integrated wireless systems and services to businesses around the world. QWBS delivers the knowledge businesses seek to operate at peak performance and improve the quality of life for its customers, their employees and the entire value chain. Qualcomm's world-class technology infrastructure, customer care and professional services enable QWBS to meet the increasingly complex needs of industries, including mobile enterprise, transportation and logistics, construction equipment and healthcare. QWBS' customer focus is based on the knowledge that leveraging technology is critical to creating business insight that helps clients achieve their vision.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2006 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

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Topics: Corporate
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