Press Release

Qualcomm Acquires License for ARM7TDMI and Arm Software Development Tools

Jul 7, 1998TOKYO

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

In a move to provide a common platform for advancedsoftware development and new applications, Qualcomm Incorporated (NASDAQ:QCOM) today announced it has licensed from ARM® the ARM7TDMI™ low-cost, low-power, 32-bit RISC CPU core for its fifth-generation MSM3000, IS-95-B Code Division Multiple Access (CDMA) baseband modem chipset. Qualcomm also licensed rights to ARM's software development tools.

Qualcomm's recently introduced MSM3000 fifth-generation single-chip Mobile Station Modem (MSM) is the first single-chip baseband solution for any cellular or PCS standard to enable data speeds at and above 64 kbps. The MSM3000 utilizes ARM technology for the first time resulting in advanced power control and several other new features providing effective use of handsets for a new breed of Internet applications with fast packet switched access to databases, e-mail and web browsing. Samples of the MSM3000 are expected to ship in July 1998.

"As the proven leader and market innovator of CDMA technology, Qualcomm is committed to providing highly integrated CDMA solutions. The use of the ARM microprocessor and software development tools enables us to design solutions for the next generation of handset platforms, providing a sustainable advantage to our customers," said Donald Schrock, president of Qualcomm's ASIC Division. "By leveraging our extensive knowledge of the CDMA technology, our goal is to continue to offer our customers the most advanced CDMA chipset solutions available. With our fifth-generation MSM3000 chip, we have delivered on that promise."

"As a leading developer and innovator of CDMA technology, Qualcomm's use of the ARM7TDMI core in advanced CDMA devices will allow handset manufacturers to reach new levels of system performance," said Reynette Au, vice president of marketing for ARM. "It also illustrates, in an exciting way, how ARM's proven technological advantages can serve a broad range of tomorrow's embedded solutions, such as Qualcomm's MSM3000."

The ARM7TDMI core is the applications and control processor of choice for extremely power and cost-sensitive marketplaces, such as digital cellular telephones. With the ARM7TDMI core, manufacturers can quickly bring to market the increasingly feature-rich handsets consumers are demanding. For example, ARM peripherals have been customized by Qualcomm to provide effective use of CDMA technology for faster access to databases, e-mail and the Internet with minimum power usage.

Qualcomm continues to demonstrate its CDMA communications product expertise with chipsets that maximize the performance of IS-95 spread spectrum systems and provide quality building blocks for subscriber communications devices.

The ARM7TDMI core is a small, high-performance, power-efficient 32-bit RISC processor. The ARM7TDMI core incorporates the Thumb™ extension as anintegral part of its instruction set. The Thumb extension utilizes an alternate set of 16-bit instruction encodings, reducing external system memory by a third, while still providing 32-bit performance on chip. The Thumb extension dramatically reduces system cost and power consumption.

With the introduction of ARM7TDMI core, the MSM family gets a much higher performance microcontroller with lower power consumption and smaller relative compiled code size. To facilitate software development, the ARM peripherals have been customized by Qualcomm to facilitate in-phone debugging capabilities of production handsets. The existing MSM code base and Real-Time Operating System (RTOS) is ported to the ARM microprocessor and then re-layered, closely meeting the need for smooth migration and fast implementation of new services and user interfaces.

Headquartered in San Diego, California, 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

ARM is a leader in microprocessor Intellectual Property. ARM designs and licenses fast, low-cost, power-efficient RISC processors, peripherals and "system-chip" solutions for embedded control, consumer/educational multimedia, DSP and portable applications. ARM supports its processor offerings with development hardware and software and contract design services. ARM licenses its technology to leading semiconductor, software and OEM partners worldwide who focus on applications, design and manufacturing. Each partner offers unique ARM-related technologies and services which together satisfy a broad range of end-user needs. Through this partnering, ARM is rapidly becoming the global volume RISC standard. ARM has offices in Cambridge and Maidenhead, UK; Los Gatos, California; Austin, Texas; Seattle, Washington, USA; Paris, France; Munich, Germany; Tokyo, Japan and Seoul, Korea. For more information, visit the ARM website 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-Q.

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Qualcomm is a trademark of Qualcomm Incorporated. OmniTRACS and Eudora Pro are registered trademarks and MSM and MSM3000 are trademarks Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. ARM, Thumb, Strong ARM and ARM Powered are registered trademarks of ARM Limited. ARM7TDMI is a trademark of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc (LSE: ARM and NASDAQ: ARMHY); its operating company ARM Limited; and the regionalsubsidiaries ARM INC; ARM KK; ARM Korea Ltd.

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