Press Release

Qualcomm and Alcatel Sign Supply Contract Agreement for Globalstar Gateways

Oct 7, 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 that they have signed a production agreement with Alcatel to purchase Mobile Switching Center (MSC) equipment for use in Qualcomm's Globalstar Gateways. The incorporation of the Alcatel MSC equipment into the Gateway ensures interoperability between the Globalstar satellite constellation and terrestrial networks worldwide.

Under an earlier development contract with Qualcomm, Alcatel modified its existing software to support unique Globalstar System features. Each Globalstar Gateway will contain a Qualcomm MSC for interfacing to IS-41 networks and an Alcatel MSC for GSM MAP networks.

"This contract represents a significant milestone in Qualcomm's development of Globalstar Gateways," said Jerry Beckwith, president of Qualcomm's Communication Systems Division. "Globalstar Gateways will now support the network features and call models of both the IS-41 and GSM terrestrial cellular systems. By integrating IS-41 and GSM technologies into the Globalstar Gateways, telephone companies and subscribers benefit by having a single point for billing and customer service. Additionally, this represents a significant step forward in combining GSM network features with a CDMA air-interface, thereby leveraging the strengths of both technologies."

Globalstar Gateways provide the earth-based entry points for Globalstar satellite signals and provides the interface into the public switches telephone networks. Globalstar Gateways will seamlessly and transparently support both IS-41 or GSM terrestrial features and global roaming.

The Globalstar network consists of a constellation of 48 low-Earth-orbit satellites, which will provide seamless voice, data, fax and position location services worldwide. Continuous multiple satellite coverage and path diversity will enable the Globalstar Communications System to provide uninterrupted service in remote areas of the world or where service is currently not available.

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, 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 24, 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.