Press Release

GTE Mobilnet Initiates Launch of CDMA Digital Services With Handsets From Qualcomm Personal Electronics

Nov 25, 1996SAN DIEGO

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

Sony/Qualcomm CDMA Sales, a division of Qualcomm Personal Electronics, today announced that GTE selected Sony CM-D500 handsets for the Austin, Texas launch of Code Division Multiple Access (CDMA) digital services, the first in a series of GTE launches nationwide. The CDMA digital phones are manufactured by Qualcomm Personal Electronics (QPE), a joint venture of subsidiaries of Qualcomm Incorporated (NASDAQ:QCOM) and Sony Electronics Inc.

The CDMA digital technology, developed by Qualcomm, provides GTE customers new levels of service, including pure voice clarity, greater call security and fewer dropped calls. The CDMA digital phones from QPE utilize Sony's Lithium Ion battery technology to deliver extended talk and standby times. The dual-mode phones switch seamlessly from CDMA digital to analog services where CDMA is not available, offering increased coverage capacity. In addition, the phones support enhanced features such as incoming caller ID, short messaging service and voice mail alert. Users are easily guided through the phone's operations with a user-friendly interface and soft-key menu. The phone's five-line liquid crystal display (LCD) includes icons to indicate signal strength, battery status, transmission mode, roaming status and other functions.

"As a leader in the wireless industry, GTE is committed to delivering to our customers all of the technological breakthroughs that CDMA digital services and products provide," said Mark S. Feighner, president of GTE Wireless. "With CDMA digital technology and phones from Qualcomm Personal Electronics, we are positioned to offer the best digital services available while continuing to accommodate future growth for customers seeking the benefits of the next generation of wireless technology."

"We are very pleased to provide GTE with the CDMA digital phones that demonstrate their ongoing commitment to offer customers the best possible products and services available," said Stephen Burke, vice president and general manager of Sony/Qualcomm CDMA Sales, a division of Qualcomm Personal Electronics. "QPE's design, production and field support capabilities have been leveraged to ensure GTE's successful launch of CDMA digital products and services nationwide."

GTE plans to deploy CDMA digital services in the San Jose, Calif., market in December and in most of its other major markets over the next 15 months. GTE Corporation is one of the largest publicly held telecommunications companies in the world. Within the United States, GTE has wireline and wireless operations that form a market area covering about one third of the country's population.

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 PCS applications, leverages both companies' product, technology and manufacturing expertise. The phones are marketed and sold in the U.S. 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 and commercial implementation of the Company's CDMA technology, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, timing and receipt of license fees and royalties, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, 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, 1997 and most recent Form 10-Qs.

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Qualcomm is a registered trademark of Qualcomm Incorporated. CM-D500 is a trademark of Sony Corporation.