Press Release

Qualcomm and Chilesat PCS Sign a $94 Million Agreement for CDMA Infrastructure and Digital Handsets

Mar 4, 1997SANTIAGO, Chile

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

Qualcomm Incorporated (NASDAQ: QCOM) today announced a signed agreement with Chilesat Telefonia Personal S.A., a subsidiary of Télex-Chile S.A., to supply approximately $94 million of Personal Communications Services (PCS) infrastructure and subscriber equipment and services, based on Qualcomm's Code Division Multiple Access (CDMA) technology, and allow Qualcomm to make an equity investment in Chilesat.

"Chilean consumers will be able to experience the distinct advantages of Qualcomm's CDMA technology such as clearer call quality, enhanced security and superior data capability as Chile joins the growing list of Latin American countries to deploy CDMA," said Dr. Irwin M. Jacobs, chairman and chief executive officer of Qualcomm. "Qualcomm is proud to add Chilesat to the growing numbers of companies making a technology choice for the 21st century."

Telex-Chile's Chairman of the Board Juan Eduardo Ibanez also expressed satisfaction with the agreement stating "Qualcomm is an excellent partner for the Chilesat PCS venture given its cutting edge technology and experience in PCS systems." He added that CDMA technology has been the choice of most PCS service providers in the U.S. market, where CDMA represents over 65 percent of the U.S. PCS market.

Under the terms of the agreement, Qualcomm will provide Chilesat with its 1900 MHz base stations and base station controllers, radio frequency design, training and network planning services using Qualcomm's QEDesign™ network planning software, under a turnkey contract that also includes voicemail and microwave backhaul. The contract also provides for delivery of the QCP-1900 phone.

The system will be deployed to operate with quality that is competitive to wireline despite running through diverse terrain and weather conditions throughout Chile. Completion of the system deployment is expected by mid-1998 and consists of three phases. The first phase entails service deployment in Santiago and Vinã Del Mar, which will provide service coverage to over half the population of Chile. Chile, a technology leader in the Latin American wireless communications marketplace, recently awarded one of three PCS licenses in 1900 MHz frequency to Chilesat Telefonia Personal, allowing it to quickly deploy a fully digital CDMA nationwide network in Chile.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro™ electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com.

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