Press Release

Qualcomm and SST Sign Agreement for Field Trial of OmniTRACS System in China

May 27, 1998SAN DIEGO

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

Qualcomm Incorporated and Guangdong South Satellite Telecommunication Service Co., Ltd. (SST) today announced an agreement to conduct a field trial in China late this year using Qualcomm's OmniTRACS® two-way mobile satellite communications system. Under the agreement, SST™ will operate and demonstrate the system to transportation companies in China. Additionally, Qualcomm and SST have signed a comprehensive Memorandum of Understanding for commercial deployment of the OmniTRACS systemupon successful completion of the field trial.

Qualcomm, a leader in mobile communications for the transportation industry, will be the first communications company to offer a proven, two-way mobile satellite communications and tracking solution to the Chinese trucking industry. With billions of dollars already allocated by the Chinese government for new highway and road infrastructure, the country is committed to expanding the heavy duty trucking market exponentially. With the new highway network under construction, emphasis is being placed on transporting goods over the road, and with the OmniTRACS system, Chinese transportation companies will be able to improve efficiencies, information flow, logistics and the tracking of loads in transit. The system's capabilities will enable them to better manage their freight and inventory, thereby giving them the ability to increase productivity and revenues.

"We are honored that a telecommunications company of such high caliber has selected our OmniTRACS system over other competing technologies," said George Mansho, vice president and general manager, OmniTRACS International. "SST is widely respected throughout China and abroad for its first-rate telecommunications services and for providing it's customers with integrated communications networks. This dovetails nicely with our OmniTRACS business strategy," added Mansho.

"We chose Qualcomm's technology for its superior qualities and management information applications coupled with the company's successful international deployment,' stated Gu Cai Ming, director and general manager of SST. ``Our goal is to offer leading-edge integrated solutions and services to our customers while providing them the opportunity to increase productivity and growth. In China's competitive marketplace, we believe OmniTRACS products and services will provide trucking firms a highly reliable, mobile information system that will move them into the next century."

Based on Qualcomm's proprietary CDMA technology, OmniTRACS has revolutionized the manner in which trucking companies do business around the world. Introduced in 1989, this cost-effective system significantly improves mobile asset management and enhances driver quality of life with 24-hour two-way communications and position reporting capabilities. Position reporting has proven beneficial with vehicle management, such as en-route dispatching, scheduling of shipments, estimated time of arrival (ETA), accident location, hijacking vehicle recovery, development of accurate records, and many other emergency and non-emergency situations.

With over 230,000 OmniTRACS units sold worldwide, Qualcomm is the leader in providing mobile communications and information management systems to the transportation industry. Qualcomm currently has systems operating in the United States, Canada, Europe, Russia, Middle East, Brazil, Mexico, Japan, Korea and Malaysia.

Headquartered in Guangzhou, China, SST is a subsidiary of Guangdong Nanfang Communication Group Corporation and is under the jurisdiction of the Guangdong Post and Telecommunication Administration (GPTA). SST specializes in VSAT telecommunication services that support a wide range of applications in voice, data, facsimile and video transmission, as well as various network interfaces and protocols. The company operates a public satellite network and provides integrated VSAT services to both domestic and international customers. Guangdong Nanfang is a multi-company corporation specializing in telecommunications equipment manufacturing and operations. The organization has several joint ventures with global telecom leaders including Lucent, Ericsson, Siemens and Hutchison. For more information on SST, call 86-20-87773388 or send email to [email protected].

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

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Qualcomm, OmniTRACS and Eudora Pro are registered trademarks of Qualcomm Incorporated. Globalstar is the trademark of Loral Qualcomm Satellite Services. SST and the SST logo are trademarks of Guangdong South Satellite Telecommunication Service Co., Ltd. All other company and product names are trademarks of their respective holders.

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