Press Release

US WEST Communications Signs Agreement Valued at Approximately $80 Million For the Purchase of CDMA Digital Handsets From Qualcomm Personal Electronics

25 Feb 1997SAN 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 US WEST Communications signed an agreement valued at approximately $80 million to purchase Qualcomm and Sony Code Division Multiple Access (CDMA) digital handsets in support of their plans to deploy CDMA digital services in their 53 U.S. markets. US WEST selected Qualcomm's QCP-1900 and Sony's CM-D600 Personal Communications Service (PCS) CDMA digital phones manufactured byQualcomm Personal Electronics, a joint venture of subsidiaries of Qualcomm Incorporated (NASDAQ:QCOM), and Sony Electronics Inc. The US WEST phones will become available in the second quarter of this year in the greater Denver area through US WEST retail outlets and direct business sales.

"We are very pleased to partner with Qualcomm Personal Electronics to secure the CDMA digital PCS handsets that will provide US WEST customers all of the technological breakthroughs that Qualcomm's CDMA digital services and products provide," said Peter Manetti, vice president and general manager of US WEST Communications. "As a leader in communications, US WEST is dedicated to making life better for our customers. With our all-new PCS services and Qualcomm's CDMA digital phones, US WEST will deliver on this promise by providing exceptional wireless services including crystal clear calls, enhanced security and longer talk and standby times."

"We are proud to partner with US WEST Communications to provide the advanced CDMA digital PCS phones that will deliver the tangible benefits of CDMA to their customers throughout the service region," said David McDowell, vice president of sales for Sony/Qualcomm CDMA Sales. "US WEST's decision to provide the most advanced digital phones available reflects its vision of how consumers and businesses alike will realize the promise of their new CDMA digital wireless communications."

The CDMA digital technology, developed by Qualcomm, provides US WEST customers the highest level of PCS digital service, including exceptional 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.

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.

Based in San Diego, California, 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 equipmenton 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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