Press Release

Qualcomm and HITACHI, Ltd. Form Strategic Alliance for CDMAWireless Infrastructure Products

Mar 20, 1997SAN DIEGO

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 Hitachi, Ltd. of Japan (NYE: HIT) to form a strategic alliance to manufacture, market and sell Code Division Multiple Access (CDMA) wireless infrastructure equipment based on Qualcomm's IS-95-based CDMA technology for use in cellular, Personal Communications Services (PCS) and wireless local loop applications. The formation of the strategic alliance follows the signing of a worldwide, royalty bearing CDMA infrastructure license announced by the companies in December 1996.

Under the strategic alliance, Hitachi will gain from Qualcomm's CDMA research and development experience and be provided access to Qualcomm's proprietary CDMA infrastructure product designs in a manner designed to greatly accelerate Hitachi's time to market with cost-competitive, feature-rich CDMA infrastructure products. In return, Hitachi will make a multi-million dollar payment to Qualcomm and will purchase from Qualcomm a percentage of Hitachi's CDMA infrastructure requirements. The companies will also continue to explore opportunities in the U.S. and elsewhere around the world to jointly market and sell CDMA products.

"This strategic alliance strengthens our relationship with Hitachi, a major global telecommunications manufacturer and further accelerates the worldwide deployment of CDMA technology. This move signals a strong commitment by Hitachi to fully support the successful introduction of IS-95 based CDMA technology in Japan and around the world. We look forward to working closely with Hitachi," said Dr. Irwin M. Jacobs, chairman and chief executive officer for Qualcomm.

"We are very pleased to have formed this close strategic alliance with Qualcomm. With Qualcomm's CDMA expertise and our manufacturing and research and development capabilities, we expect to play a major role in bringing the latest CDMA products to the wireless marketplace around the world, said Mr. Takao Kato, General Manager of Telecommunications Division of Hitachi, Ltd.

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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