Press Release

Qualcomm Announces Major Milestone with Shipment of Six Million MSM Chips

Jun 18, 1997SAN DIEGO

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

Qualcomm Incorporated (NASDAQ:QCOM) today announced it had reached a major milestone with the shipment of over sixmillion MSM (Mobile Station Modem) chips to Code Division Multiple Access (CDMA) handset manufacturers worldwide, supporting the production of over six million CDMA handsets. Qualcomm Personal Electronics, a joint venture of subsidiaries of Qualcomm and Sony Electronics, is one of the handset manufacturers.

"We have been able to quickly and smoothly meet the very high volume demand for CDMA semiconductors with high quality, innovative and cost effective solutions. Qualcomm is fully committed to support all worldwide CDMA equipment manufacturers and we are actively investing in new semiconductor product design in close cooperation with our customers. Because of these high volumes we have been able to singificantly reduce the MSM selling price to our customers," said Donald Schrock, senior vice president and general manager of Qualcomm's ASIC Business Unit.

In record time Qualcomm's ASIC Business Unit has taken the latest CDMA chipsets from volume ramp-up in the second half of 1996 to major volume production and is now running at a monthly rate of approximately one million chipsets. The MSM chips currently shipping are Qualcomm's third-generation design that will be followed by the first deliveries of its fourth-generation MSM late this summer.

"The current generation of Qualcomm MSM is the first true single chip multi-processor based wireless modem for any cellular and PCS handset standard to reach mass deployment. We are pleased to announce the successful introduction of and continuous support for state-of-the-art semiconductor solutions for the CDMA market," said Johan Lodenius, director of marketing for ASICs.

The MSM includes proprietary CDMA building blocks and several microprocessor and DSP cores integrated onto a single chip. Target applications are subscriber units for multi-mode Cellular, PCS and Wireless Local Loop (WLL) systems. The MSM interfaces directly to Qualcomm's Baseband Analog Processor (BBA) chip which bridges the RF and digital baseband portions of the phone. Qualcomm also supplies the key semiconductors required for CDMA Base Station products.

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 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, 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 is a trademark of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.