Press Release

Qualcomm Responds To Misleading Ericsson Press Release

Apr 16, 1997SAN DIEGO

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

Qualcomm Incorporated (NASDAQ: QCOM) today responded to a misleading press release issued by Ericsson which implied that Qualcomm's unfair competition and related claims had been dismissed on the merits by the federal court in San Diego. The San Diego court's order, publicly filed on April 9, 1997, makes clear that the dismissal is for the purpose of consolidating Qualcomm's claims with Ericsson's lawsuit against Qualcomm pending in federal court in Marshall, Texas and states "no apparent bar exists to Qualcomm pursuing the claims alleged in this case in the Texas action." The Court decided to dismiss the case and require Qualcomm to bring its claims in Texas for reasons of judicial economy. The court reasoned: "To proceed with this complex and expensive litigation in multiple forums would waste the resources of both parties and this Court."

"Ericsson's misleading press release, which incorrectly characterizes a week-old procedural ruling, and the calculated effect it would have on Qualcomm's stock confirms what is alleged in our complaint: that Ericsson appears intent on injuring Qualcomm and hindering the deployment of the Company's CDMA technology and products in any way that it can," said Steve Altman, Qualcomm's senior vice president and general counsel. "Ericsson's latest action is further confirmation that Qualcomm's claims of unfair competition are well taken and will form another element of our proof and damages. The Court's ruling has no bearing on Ericsson's claims against Qualcomm or on the merits of Qualcomm's claims against Ericsson, and we remain confident that Qualcomm will prevail in both disputes."

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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