Press Release

Qualcomm Personal Electronics Achieves 100,000 Unit Milestone of Qualcomm and Sony CDMA Phones Shipped

Jun 3, 1996SAN DIEGO

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

Qualcomm Personal Electronics, a joint venture between subsidiaries of Qualcomm Incorporated, (NASDAQ: QCOM) and Sony Electronics Inc., today announced that it has shipped over 100,000 units of their CDMA cellular and Personal Communications Services (PCS) phones manufactured at the Company's 400,000 square foot facility in San Diego, Calif. The CDMA phones are being shipped to customers in the United States, Korea and Hong Kong. U.S. Senator Barbara Boxer, D-Calif., joined Sony and Qualcomm executives in a celebration of this major milestone achievement.

"This example of American know-how is a wonderful economic conversion success story. Businesses in San Diego and California have hired skilled workers from the defense sector and successfully retrained them to produce high technology consumer products," said Sen. Boxer. "Hundreds of job opportunities for virtually every level of worker have resulted and our balance of trade moves in the right direction. It's truly a win-win situation."

"We are proud of the early success of Qualcomm Personal Electronics and its contributions to the local community," said Derek R. May, president of Qualcomm Personal Electronics. "Qualcomm has grown to more than 4,400 employees over the past 10 years, and Sony has been a presence in San Diego for over 25 years with more than 3,000 people. Qualcomm Personal Electronics now employs nearly 600 workers, and our planned growth will ensure greater opportunities in the years to come."

"San Diego is rapidly gaining international recognition for its role in the wireless telecommunications revolution that is transforming how we work and communicate," said Yutaka Sato, president of Sony Wireless Telecommunications Company (WTC). "We look forward to further growth of our San Diego based design, manufacturing and marketing resources to answer the ever increasing demands for wireless phones."

"The phones that we have built at Qualcomm Personal Electronics in San Diego have been used to inaugurate commercial CDMA service in cities around the world," said Dr. Paul E. Jacobs, vice president and general manager of Qualcomm's Subscriber Products. "One hundred thousand phones are the beginning of a production ramp supporting the requirements of carriers worldwide who are bringing CDMA's advantages to their customers."

Qualcomm Personal Electronics manufactures the Qualcomm QCP-800 cellular and QCP-1900 PCS phones and the Sony CM-D500 cellular and CM-D600 PCS phones for worldwide distribution. The CDMA phones deliver extended talk and standby times from Sony's Lithium Ion battery and through the unique properties of the CDMA technology, developed by Qualcomm. When customers subscribe to enhanced features, the phones can support incoming caller ID, short messaging service and voice mail alert. Users are easily guided through the phones' operations with a user-friendly interface and soft-keymenu. The phones also have a five-line liquid crystal display (LCD), which includes icons to indicate signal strength, battery status, transmission mode, roaming status and other functions.

Based in San Diego, Calif., Qualcomm Personal Electronics is a joint venture of subsidiaries of Qualcomm Incorporated, and Sony Electronics Inc. Qualcomm Personal Electronics, which manufactures CDMA portable phones for cellular and Personal Communications Services (PCS) applications, leverages both companies' product, technology and manufacturing expertise. The phones are marketed and sold in the U.S. to service providers and OEM customers through Sony/Qualcomm CDMA Sales, a division of Qualcomm Personal Electronics, and throughout the world by Qualcomm and Sony.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, change in economic conditions of the various markets that Qualcomm serves, as well as the other risks detailed from time to time in Qualcomm's SEC reports, including the report of Form 10-K for the year ended September 24, 1995 and most recent Form 10-Qs.

CM-D500 and CM-D600 are trademarks of Sony Electronics Inc. Qualcomm is a registered trademark of Qualcomm, Inc. QCP-800 and QCP-1900 are trademarks of Qualcomm Incorporated.