Press Release

Qualcomm Responds to Digital Security Issues

Mar 20, 1997SAN DIEGO

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

In response to recent news reports concerning the security and privacy of digital wireless communications, Qualcomm Incorporated (NASDAQ: QCOM) issued the following statement today from Dr. Irwin M. Jacobs, chairman and chief executive officer for Qualcomm:

"Yesterday's announcement on digital cellular security underscores the need to provide consumers with enhanced security and privacy, which are the hallmarks of our Code Division Multiple Access (CDMA) digital technology. Qualcomm's CDMA technology continues to successfully provide a very high level of protection from cloning and eavesdropping. It remains impractical to manufacture a monitoring device that would enable a listener to scan hundreds of channels and listen in randomly on any CDMA call.

"CDMA provides a unique scrambling method that continually changes throughout every call. Any one of more than 4.4 trillion codes are utilized during the scrambling process. Voice privacy and cloning protection provided by Qualcomm's CDMA technology are not affected by the security issues surrounding the Cellular Message Encryption Algorithm (CMEA), and therefore changes to CDMA networks and wireless phones are unnecessary.

"Qualcomm recognizes that no technology is impervious to security attacks. We are actively working with the Telecommunications Industry Association to even further strengthen the resistance of CDMA technology to security attacks."

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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Qualcomm, OmniTRACS and Eudora are registered trademarks and Eudora Pro is a trademark of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.

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