Press Release

Cellular One Launches Arizona's first CDMA Digital Service in Phoenix with Handsets from Qualcomm Personal Electronics

Dec 19, 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 (QPE), today announced that Cellular One launched Arizona's first Code Division Multiple Access (CDMA digital service in the Phoenix area with Qualcomm handsets from QPE, a joint venture of subsidiaries of Qualcomm Incorporated (NASDAQ:QCOM), and Sony Electronics Inc. Cellular One's new digital system will cover most of themetropolitan Phoenix area, serving approximately 90 percent of the populated areas. The phones will become available on January 1, 1997, at Cellular One retail stores and through direct business sales and authorized agents.

"Cellular One is proud to be the first to launch CDMA digital services in the Phoenix, Arizona market," said Greg Klimek, president of Cellular One. "With Qualcomm's CDMA digital QCP-800 dual-mode phones and our CDMA network, our customers will experience unprecedented wireless sound quality. You simply have to hear it to believe it."

Qualcomm's CDMA digital technology provides Cellular One customers greater levels of service, including exceptional voice clarity, greater call security and fewer dropped calls. The Qualcomm CDMA digital phones utilize Sony's Lithium Ion battery technology to deliver extended talk and standby times. The dual-mode phones operate in CDMA digital mode and switch to analog services when CDMA is not available.

Enhanced features such as incoming caller ID, short messaging service and voice mail alert are supported by the new phones. Users are easily guided through the phone's operations with a user-friendly interface and soft-key menu. The phone offers the industry's largest liquid crystal display (LCD), including a four-line by 12 character display area plus a line of icons that indicate signal strength, battery status, transmission mode, roaming status and other functions.

"We are pleased to supply Cellular One with the CDMA digital phones that are now delivering state-of-the-art services to their customers throughout the metropolitan Phoenix area," said Stephen Burke, vice president and general manager of Sony/Qualcomm CDMA Sales, a division of Qualcomm Personal Electronics.

"We leverage our design, production and field support capabilities for each of our customers to ensure the success of every launch of CDMA digital products and services."

Southwestco Wireless, L.P. is a separate subsidiary of Bell Atlantic NYNEX Mobile, one of the largest wireless service providers in the United States. Headquartered in Scottsdale, Arizona, Southwestco markets under the Cellular One name and provides a full range of wireless services from voice and cellular long distance to messaging and data. Southwestco provides Cellular One service to Phoenix, Tucson, Casa Grande, Flagstaff, MiamiGlobe, Prescott, Payson, Sierra Vista and Nogales, Arizona; Albuquerque and Las Cruces, New Mexico; and El Paso, Texas.

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 CDMA expertise. The phones are marketed and sold in the U.S. through Sony/Qualcomm 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 asthe 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 29, 1996 andmost recent Form 10-Qs.

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Qualcomm is a registered trademark of Qualcomm Incorporated.