Press Release

Qualcomm Announces Agreement to Supply CDMA WLL System to Kubtelecom in Russia

Jan 12, 1998SAN 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 it has been selected by Kubtelecom of Krasnodar, Russian Federation to supply a cdmaOne™ (IS-95 Code Division Multiple Access) wireless telecommunications system. The signed contract, valued at more than $10 million, over three years, covers the deployment of a 800 MHz CDMA wireless local loop (WLL) system to provide service to the Krasnodar region. Deployment of the WLL system is expected to begin in February, with commercial operation scheduled for the second quarter of 1998.

"The aim of this project is to provide reliable, high-quality service to the city of Krasnodar and Krasnodar krai (region)," said Mr. Leonid Laskavy, first deputy general director at Kubanelectrosviaz, the parent company of the newly formed Kubtelecom. "There is very high demand for telephones in Krasnodar krai, with a waiting list of more than 250,000, and Qualcomm's CDMA wireless local loop system will be an optimal solution to provide service to the people who need it. Kubtelecom believes that working with Qualcomm, the pioneer of the technology, will ensure that we provide our customers with the best service possible on a CDMA network today and well into the future."

In a CDMA wireless local loop application, a wireless link is used to replace a traditional copper line to connect telephones with a central switching office, providing an alternative to the costly and time-consuming implementation of wired telephone lines. The customer's wireless phone, which looks and functions like a regular wired telephone, transmits and receives voice and data calls over a wireless link via Qualcomm's digital technology, called CDMA. Qualcomm's CDMA wireless local loop systems give telecommunications carriers the ability to quickly and cost effectively introduce basic telephone service to large populations in diverse terrain. Kubtelecom's high performance CDMA wireless local loop system from Qualcomm will provide customers in the region with exceptional voice quality and reliable, secure connections, as well as advanced features and services.

"We are very pleased to have the opportunity to work closely with Kubtelecom to plan and install a CDMA wireless local loop system to serve the Krasnodar region," said Dr. Ron Uhlig, regional vice president of the Commonwealth of Independent States (CIS) and Baltic Countries for Qualcomm. "This network represents our fourth CDMA installation in Russia, and further underscores our commitment to the region in expanding telecommunications services with CDMA, the most advanced digital wireless technology available."

Qualcomm's products optimize cdmaOne technology to its greatest potential, providing high-performance networks to operators all over the world. The network in Krasnodar will include Qualcomm's distributed, scaleable QCore™22X Integrated Base Station Controller, the QCell™ line of Base Station Transceiver Subsystems, and QCT-1000 subscriber terminals. The system will be designed using Qualcomm's industry leading network planning software tool, QEDesign™. Qualcomm will also provide a range of deployment services, including training, program management, installation, commissioning and optimization.

Qualcomm has emerged as a leader in the WLL arena with commercial WLL systems in Russia and India, and other WLL deployments underway or planned in Bangladesh, Nigeria, the Philippines, Russia and the Ukraine. Qualcomm's mobile CDMA systems are being deployed in several countries, including the United States and Chile. As the pioneer of CDMA technology, Qualcomm continues to invest in research, development and standardization of new CDMA features and services, as well as third-generation digital wireless technologies.

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 and commercial implementation of the Company's products, 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 28, 1997 and most recent Form 10-Qs.

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Qualcomm, OmniTRACS, Eudora and Eudora Pro are registered trademarks of Qualcomm Incorporated. QCell and QCore are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. cdmaOne is a trademark of the CDMA Development Group.

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