Press Release

Qualcomm Announces $70 Million PCS Handset Agreement with Bell Mobility

Jun 4, 1997TORONTO, Ontario

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

Qualcomm Incorporated (NASDAQ: QCOM) today announced that Bell Mobility moved closer to commercial launch of its digital PCS service with the signing of an 18- month, $70 million contract(NASDAQ: QCOM) for Qualcomm's Code Division Multiple Access (CDMA) digital handsets, including the "Q" phone, the world's smallest and lightest 1.9GHz CDMA digital PCS phone.

When it launches PCS later this year, Bell Mobility will offer customers Qualcomm's QCP-2700, the first CDMA digital dual- band, dual-mode phone, providing access to both Bell Mobility's new PCS network and existing extensive analog network. As well, these dual-band, dual-mode phones increase customers' ability to roam more freely throughout Canada and the U.S. in either digital PCS or either analog coverage areas.

"Our customers have told us they want better voice quality, seamless coverage and enhanced services—benefits that have been proven with existing CDMA networks across North America and in other areas around the world," said Randall Reynolds, senior vice president, Market and Network Development, Bell Mobility. "By selecting Qualcomm, the world leader in CDMA development, as one of our handset providers, we intend to exceed customer expectations."

"Qualcomm congratulates Bell Mobility on selecting our innovative new series of CDMA digital phones, including the new palm-sized 'Q' phone," said David J. McDowell, senior vice president of sales for Qualcomm's Subscriber Products Division. "Canadians will be among the first to experience the revolutionary new features that these lightweight digital phones offer."

Bell Mobility's CDMA- based digital PCS, is currently undergoing market trials in the Ottawa-Hull area. Customer trials will also take place in Toronto and Montreal this summer.

"We have built our reputation as the leader in wireless communications by providing Bell Mobility customers with the highest quality of technology and service," said Reynolds. "CDMA is proof-positive—quickly becoming the most widely accepted digital technology platform in North America providing coverage for more than 200 million populations across the U.S. already." Bell Mobility selected CDMA along with network infrastructure equipment from Nortel, as the platform for its digital PCS. CDMA technology tests met corporate standards for coverage, capacity and call quality and also demonstrated the ability to support the most advanced features and applications. Reynolds said the Qualcomm contract replaces a $125 million, 36-month arrangement with OKI Telecom Inc. because Bell Mobility felt product availability through Qualcomm is more consistent with the company's service launch schedule.

Certain statements contained in this release are based on assumptions and beliefs by management about future events. These statements can not be held as a guarantee of corporate performance and are subject to a number of uncertainties that could cause actual results to differ. BCE Mobile Communications Inc. disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. Qualcomm's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services) as well as CDMA wireless communications systems and products. Other Qualcomm 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

The Bell Mobility family of companies provides a complete range of wireless communications solutions—cellular, 1- and 2-way paging, data, satellite and airline passenger communications services—to more than 1.3 million Canadian customers. Bell Mobility companies are subsidiaries of BCE Mobile Communications Inc., a publicly-traded company (TSE, ME, NYSE; stock symbol BCX) which is 65 percent owned by BCE Inc. Bell Mobility was licensed in December 1995 to provide personal communications services (PCS) in the 1.9GHz frequency.

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, change in economic conditions of the various markets Qualcomm serves, as well as the other risks detailed from time to time in Qualcomm'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.