Press Release

Qualcomm and CellStar Sign Agreement for CellStar to Distribute CDMADigital Cellular and PCS Phones

May 28, 1997SAN DIEGO

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

Qualcomm Incorporated (NASDAQ: QCOM) and CellStar Corporation (NASDAQ: CLST) today announced the two companies have reached an agreement for CellStar to distribute Qualcomm's Code Division Multiple Access (CDMA) digital cellular and personal communications services (PCS) phones. CellStar will distribute the phones to carriers and resellers throughout the United States beginning in June.

"We are very pleased to begin distribution of Qualcomm's CDMA digitalphones," said Richard Gozia, president and chief operating officer of CellStar. "Qualcomm's entire family of CDMA digital products has raised the bar of consumer expectations everywhere. We are proud to represent Qualcomm's family of innovative CDMA digital phones and look forward to a successful partnership."

"Qualcomm's partnership with CellStar will advance the available distribution of our innovative CDMA digital products to new customers across the country," said David J. McDowell, senior vice president of sales for Qualcomm's Subscriber Products Division. "This agreement provides an ideal opportunity to service emerging smaller carriers and other distribution channels that require the unique value-added services that CellStar can provide."

Qualcomm's family of CDMA digital phones includes the new CDMA digital 1900 MHz PCS "Q" phone, the world's first palm-sized CDMA phone; the QCP series of CDMA digital handsets including the QCP-2700, the first 1900 MHz CDMA digital/800 MHz analog dual-band, dual-mode phone; and the QCT series of fixed wireless phones. The hallmarks of every Qualcomm CDMA digital phone include, exceptionally clear voice quality, enhanced privacy, fewer dropped calls, and longer talk and stand-by times.

CellStar Corporation is an integrated wholesaler and retailer of wireless handsets and other wireless communications products with operations in the United States, the Asia-Pacific Region, Latin America and the United Kingdom. The Company is one of the world's largest non-carrier wholesale distributors of wireless handsets for Motorola, Inc., Nokia, Mobile Phones, Inc., and Ericsson, Inc., and is one of the largest non-carrier wholesale distributors of wireless handsets for Qualcomm and NEC Corporation in the United States. For more information on CellStar's products and services, please visit the Company's web site at

Headquartered in San Diego, Qualcomm develops, manufactures, markets,licenses and operates advanced communications systems and products based onits proprietary digital wireless technologies. The Company's primary productareas 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, Qualcomm's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in 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 is a trademark of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services. All other trademarks are the property of their respective owners.