Press Release

Qualcomm Announces New $240 Million Wireless Alliance Bulk Contract

Feb 23, 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 a new joint agreement with AirTouch Cellular (NYSE: ATI), U S WEST NewVector Group and PrimeCo Personal Communications L.P. valued at approximately $240 million for the supply of Qualcomm's Code Division Multiple Access (CDMA) digital Q phone series and QCP series of CDMA wireless handsets. This agreement directly with Qualcomm follows the conclusion of shipments by Qualcomm Personal Electronics under its previously-announced $500 million contract with AirTouch Cellular, U S WEST NewVector Group, Bell Atlantic Mobile and PrimeCo Personal Communications L.P. Qualcomm's product shipments have begun and will continue through mid-1999.

"We are proud to continue our alliance with AirTouch, U S WEST NewVector and PrimeCo," said David J. McDowell, senior vice president of sales for Qualcomm's Subscriber Products Division. "Our continued partnership illustrates the ever increasing demand nationwide for Qualcomm's popular family of CDMA digital wireless phones."

"Qualcomm products, coupled with our superior PCS service offering, will provide a high-quality wireless solution to meet our customers' needs," said Russ Wiseman, vice president of marketing and strategy for PrimeCo.

"This agreement allows us to continue providing our customers with a high-quality CDMA handset to complement our state-of-the art Powerband™ CDMA network," said Gary Schindler, EVP-Shared Services, AirTouch Cellular.

"Partnering with Qualcomm for subscriber products will ensure that our customers have the latest in digital technology and will be ready to take advantage of future CDMA data developments," said Steve Boyd, president and chief executive officer of U S WEST NewVector.

Q Phone Series
Qualcomm's new 800 MHz CDMA digital Q™ phone, expected to become available in the early summer of 1998, and the 1900 MHz Q phone are light-weight, palm-sized phones featuring a wide variety of options to provide users the utmost in flexibility. The sleek ergonomically designed Q phone offers users short messaging service and voice mail alert. For greater flexibility in call handling, the folding Q phone offers users a variety of audible ringers, a vibration call notification, and the ability to silence a call. The Q phone also features automatic call answer, allowing calls to be answered by simply opening the phone. In caller ID mode, the Q phone displays the incoming call number and upon opening, can be answered with a single touch of a button. The Q phone will also be upgradeable to accommodate future wireless data and Internet information access options.

QCP Series
Qualcomm's QCP series includes the QCP-2700™ phone, the first dual-band, dual-mode phone offering expanded coverage for PCS subscribers in 1900 MHz PCS/800 MHz analog service areas and the QCP-820™ dual-mode 800 MHz digital/analog phone. Weighing as little as 6.3 ounces (when shipped with Qualcomm's new ultra-slim Lithium Ion battery), the QCP series provides customers a light-weight phone that delivers the inherent benefits of CDMA performance. All Qualcomm QCP models come equipped with a dial shuttle, allowing users to quickly and easily operate the phone with a single touch. The intuitive user interface provides rapid access to a host of phone features. The QCP series of phones offers an ergonomically designed earpiece-providing users optimal comfort and exceptional sound reception, even during extended conversations. The phones also include intelligent internal charging controls and battery options that provides up to five hours of talk time.

Qualcomm's entire series of CDMA portable phones features one of the largest liquid crystal displays (LCD) available, including a four-line by 12 character display for functions such as caller ID, short messaging service and voice mail alert. The display also includes a line of icons indicating signal strength, battery status, transmission mode, roaming status and other functions.

PrimeCo Personal Communications
PrimeCo Personal Communications provides digital wireless service in 28 cities, including: Norfolk and Richmond, Va.; Fort Lauderdale, Jacksonville, Miami, Orlando, Tampa, Kissimmee, Sarasota/Bradenton, Lakeland/Plant City/Winter Haven, Melbourne and Titusville/Cocoa, Fla.; Chicago, Springfield, Champaign/Urbana and Bloomington/Normal, Ill.; Milwaukee, Madison and Green Bay/Appleton, Wis.; New Orleans; Austin, Dallas, Fort Worth, Houston and San Antonio, Texas; Mobile, Ala.; Honolulu and Maui, Hawaii. The company, which is owned by AirTouch Communications, MediaOne and Bell Atlantic, has PCS licenses covering 19 states and 61 million potential customers in 11 MTAs and has nearly 2,800 employees. At the end of the fourth quarter 1997, PrimeCo had more than 387,000 subscribers. PrimeCo phones and service are sold through the company's 69 stores and kiosks, its business-to-business direct sales force, more than 2,500 indirect retailers and its toll-free telephone sales line (800) PRIMECO. The address for PrimeCo's interactive web site is

AirTouch Communications is a global wireless communications company, with interests in cellular, paging, and personal communications services in the United States, Belgium, Germany, India, Italy, Japan, Poland, Portugal, Romania, South Korea, Spain, and Sweden, as well as an interest in the Globalstar satellite system. The company, based in San Francisco, serves nearly 11 million proportionate customers worldwide.

U S WEST NewVector
AirTouch Cellular is the brand name for U S WEST NewVector Group, Inc. Based in Bellevue, Wash., NewVector has cellular operations in 12 midwestern, western and southwestern states and serves more than two million customers. The company is part of Denver-based MediaOne Group (NYSE: UMG), formerly U S WEST Media Group, one of America's largest broadband communications companies.

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 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 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 Qualcomm's web site at or call (800) 349-4188.

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, 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 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 28, 1997 and most recent Form 10-Q.

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Qualcomm, OmniTRACS and Eudora are registered trademarks. The QCP-2700, QCP-820, Eudora Pro and the Q logo are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Globalstar, L.P. All other trademarks are the property of their respective owners.