Press Release

Qualcomm and Inter-Tel Sign Agreement for CDMA Wireless Local Loop Applications

Mar 1, 1996SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

Qualcomm Incorporated (NASDAQ: QCOM) and Inter-Tel Incorporated (NASDAQ: INTL) today announced that they have signed a development, supply and license agreement for telephone switching equipment for wireless local loop applications based on Qualcomm's Code Division Multiple Access (CDMA) technology. The agreement leverages Qualcomm's CDMA digital wireless expertise and Inter-Tel's broad experiencein developing and marketing advanced telecommunications solutions.

Under the terms of the agreement, Qualcomm will incorporate Inter-Tel's AXXESS digital platform into its QCT-8000™ Concentrated Subscriber System. Qualcomm is granted a license to manufacture and sell Inter-Tel's AXXESS software and hardware. The QCT-8000 will be marketed internationally under the Qualcomm name as part of the Company's QCTel™ line of wireless local loop infrastructure and subscriber equipment.

The QCT-8000 enables digital wireless telephone networks to be deployed rapidly and economically in developing countries which lack sufficient land-line infrastructure. The QCT-8000 system builds upon the Inter-Tel AXXESS PBX platform by adding Qualcomm's CDMA subscriber transceiver modules and radio frequency (RF) front end.

The QCT-8000's modular design allows for up to 80 subscribers to share 16 CDMA transceivers to concentrate subscriber traffic on a common RF antenna link and provide immediate wireless connectivity to the CDMA cell site. Initial systems will operate using the 800 MHz analog bands, with future migration to other frequencies.

According to Dr. Paul Jacobs, vice president and general manager for Qualcomm's Subscriber Products group, "Qualcomm and Inter-Tel have been successfully working together to develop innovative wireless local loop products since 1994. This agreement marks the next step toward widespread commercialization of Qualcomm's CDMA wireless local loop solutions."

Thomas C. Parise, president and chief operating officer of Inter-Tel, views the project as part of the company's ongoing effort to develop advanced voice, data, video and wireless products. "We're delighted to participate in Qualcomm's effort to produce and market this advanced wireless product," said Mr. Parise. "The creation of a concentrated wireless local loop solution exemplifies one of the many custom applications we envisioned when designing the AXXESS."

The unique design of the QCT-8000 utilizes Qualcomm's CDMA technology. CDMA digital technology provides excellent call quality, less background noise, increased cell area coverage and enhanced security. Designed to reside in a building's common telecommunications closet, the QCT-8000 connects to each apartment or office location via standard twisted pair cabling. Subscribers can easily access the QCT-8000 system by plugging a telephone, fax machine or data modem into a standard RJ-11 telephone walljack.

Inter-Tel is a single point of contact, full service solutions integrator providing business telephone systems, telecommunications software applications, computer-telephony integration (CTI), voice processing software and long distance calling services, as well as maintenance, leasing and support services. The Company's Common Stock is quoted on the NASDAQ National Market System under the symbol INTL.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other company products include the Eudora Pro™ electronic mail software, VLSI components, and communications equipment and systems for government and commercial customers worldwide.

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OmniTRACS is a registered trademark of Qualcomm Incorporated. GLOBALSTAR is a trademark of Globalstar, L.P. QCT-8000 and QCTel are trademarks of Qualcomm Incorporated. Eudora is a registered trademark of the University of Illinois licensed to Qualcomm Incorporated.