Press Release

Qualcomm Announces $300 Million Agreement to Supply CDMA Digital Handsetsto Telecom Great Wall Development Company

Apr 30, 1997BEJING, China

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

Qualcomm Incorporated (NASDAQ: QCOM) today announced it has signed a four-year agreement valued at over $300 million with an affiliate of Telecom Great Wall Development Company of Beijing for the purchase of Qualcomm-branded Code Division Multiple Access (CDMA) digital phones. Beginning in the second half of 1997, Telecom Great Wall is expected to initially take deliveries of Qualcomm's new 800 MHz, QCP-820™ dual mode CDMA digital phones, the first in a series of handset models planned for distribution throughout the People's Republic of China.

Qualcomm's handsets are field proven in deployments worldwide with existing systems from every CDMA infrastructure manufacturer. As a result, Telecom Great Wall is expected to rapidly deploy commercial service to cities throughout China. This agreement demonstrates the expanding market for CDMA around the world and the expanding market for Qualcomm products.

Earlier this year, Qualcomm announced four new phones, including the world's smallest and lightest CDMA digital phone, the "Q" phone, as well as the QCP-820, QCP-1920™ and the QCP-2700™, the first CDMA/analog dual band, dual mode phone. This first major CDMA phone contract in China, potentially one of the largest wireless markets in the world, adds further momentum to Qualcomm'S position as the leading supplier of CDMA subscriber equipment.

"The explosive growth in China's wireless marketplace has created an increasing demand for high quality wireless services that only Qualcomm's CDMA digital technology can provide," said Dr. Paul E. Jacobs, president of Qualcomm's Subscriber Products Division.

"Our contract with Telecom Great Wall marks one of the largest international sales of CDMA digital subscriber equipment to date, and demonstrates Qualcomm and Qualcomm Personal Electronic's continued industry leading positions as the world's largest supplier and manufacturer of CDMA handsets. We are proud to partner with Telecom Great Wall to supply Chinese consumers with Qualcomm's new line of CDMA digital phones," Dr. Jacobs said.

"In choosing Qualcomm's sleek new CDMA digital handsets, our wireless customers will have all the unparalleled advantages that CDMA technology delivers from an attractive, lightweight, easy-to-use phone," said Kang Jian, president of Telecom Great Wall Development Company, Beijing and USA. "Our agreement with Qualcomm ensures that the Great Wall consortium will quickly be able to meet consumer demand this year, and continue to meet the growing demand into the future."

Qualcomm's lightweight QCP-820 dual mode CDMA digital/analog phones offer ahost of new features. Each comes equipped with a unique dial shuttle that provides point-and-click, single-touch access to the information and phone functions that users rely on most. The phone's ergonomically designed earpiece offers users optimal comfort and exceptional sound reception, even during extended conversations. The QCP-820 also includes intelligent internal charging controls and three battery options, a standard NiCad battery, a slim NiMH battery, or an extended Lithium Ion battery that provides up to five hours of talk time.

Like Qualcomm's entire series of CDMA digital portable phones, the QCP-820 features one of the largest liquid crystal displays (LCD) available, including a four-line by 12 character display area plus a line of icons indicating signal strength, battery status, transmission mode, roaming status and other functions. The large display is ideal for enhanced calling features that the phones support such as incoming caller ID, short messaging service and voice mail alert. The hallmarks of every Qualcomm CDMA digital phone include crystal clear voice quality, enhanced privacy, fewer dropped calls, and long talk and stand-by times.

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

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, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis, currency risks, 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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Qualcomm, OmniTRACS and Eudora are registered trademarks and Eudora Pro, QCP-820, QCP-1920, QCP-2700 and "Q" phone are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Globalstar, L.P. All other trademarks are the property of their respective owners.