Press Release

One Million CDMA Phones Shipped by Qualcomm Personal Electronics

Feb 10, 1997SAN DIEGO

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

Qualcomm Personal Electronics (QPE), a joint venture between subsidiaries of Qualcomm Incorporated, (NASDAQ: QCOM) and Sony Electronics Inc., today announced it has shipped over one million Code Division Multiple Access (CDMA) digital portable phones. 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 phones are available through cellular and PCS carriers in the United States, Canada, Hong Kong, and Korea.

"Achieving this major delivery milestone in such a short time period clearly demonstrates the broad commercial appeal of CDMA digital phones for both cellular and PCS services," said Dr. Irwin M. Jacobs, chief executive officer of Qualcomm Incorporated. "The unique combination of wireline voice quality with longer talk and standby times has made CDMA a compelling choice for consumers and operators.

"We are very pleased with the performance of QPE in supporting the difficult demands of CDMA market launches in Hong Kong, Korea, Canada, and the United States. As we move forward, customers will continue to see greater innovation and diversity in product lines from both Qualcomm and Sony to meet the ever increasing demands for wireless phones throughout 1997 and beyond."

"In 1996 the partners invested heavily in QPE," said Carl Yankowski, president and COO of Sony Electronics Inc. "In fifteen months QPE has gone from start-up to industry leadership. In the last six months, the factory more than doubled its initial capacity and is poised to support the rapidly growing demand for CDMA digital handsets. We are committed to maintaining QPE's leadership as a global supplier to CDMA carriers."

Carriers across the United States that offer Qualcomm and Sony CDMA digital phones built by Qualcomm Personal Electronics, include: 360° Communications, AirTouch Communications, Bell Atlantic NYNEX Mobile, Cellular One, GTE MobilNet, PCS PrimeCo, and Sprint PCS. The availability of the phones continues to increase as these and other carriers introduce service to new markets across the country and around the world.

Qualcomm Personal Electronics, now the world's largest manufacturer of CDMA digital phones, manufactures Qualcomm and Sony dual-mode CDMA digital/analog and CDMA digital PCS phones. The phones deliver extended talk and standby times through the unique properties of the CDMA technology developed by Qualcomm, and from Sony's Lithium Ion battery technology. 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-key menu. 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 PCS applications, leverages both companies' product, technology and manufacturing CDMAexpertise. 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 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 29, 1996 and most recent Form 10-Qs.

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Qualcomm is a registered trademarks of Qualcomm Incorporated. All other trademarks are the property of their respective owners.