Press Release

Qualcomm Lands TrailerTRACS Contract with Covenant Transport

Jul 22, 1998SAN DIEGO

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

SAN DIEGO - July 22, 1998 - Qualcomm Incorporated (NASDAQ: QCOM), a leaderin mobile communications for the transportation industry, announced todayit has signed a contract with Covenant Transport (NASDAQ: CVTI), one of thenation's largest trucking companies, to outfit Covenant's dry van fleetwith 3,400 TrailerTRACS® units. Installations began in early June.

"It is our intention to equip our entire fleet with Qualcomm's TrailerTRACSproduct and inventory control software. This will enable us to reap thefull benefits of optimized trailer utilization," stated David Parker,chairman, chief executive officer and president of Covenant Transport."Our decision was based on company goals to decrease costs and increaseproductivity through an improved tractor-to-trailer ratio. WithTrailerTRACS we believe we can achieve this."

Covenant's Refrigerated Division originally purchased the TrailerTRACSreefer monitoring option to reduce cargo claims by utilizing the productsset point and reefer alarm reporting. At the same time, Covenant observedhow TrailerTRACS improved operational efficiency with dispatch integrationand location reporting. Covenant wanted its entire fleet to have the bestend-to-end trailer tracking system available, according to Mike Miller,Covenant's executive vice-president and chief operating officer. "We areaware that new untethered solutions are being developed by variousproviders, including Qualcomm," he said. "However, Qualcomm's TrailerTRACSsystem meets our needs right now by giving us visibility to our trailers,so why wait? If our future needs require untethered functionality, we willhave those options available. It wasn't a difficult decision. Qualcommhas the only proven-product available today."

"We are pleased that Covenant took the time to assess all the optionsthoroughly and chose to outfit their entire fleet with our TrailerTRACSproduct," stated Phil White, senior vice-president and general manager ofQualcomm's OmniTRACS Division. "Our product is and will continue to enablethem to significantly reduce trailer costs and streamline operations."

"By outfitting our dry van fleet, we will be able to improve our operatingprofit by gaining visibility to all our trailers using TrailerTRACS,"Parker said. "Covenant's goal is to reduce our equipment costs by nearly$1 million this year through improved trailer utilization alone. To thatend we have reduced our 1998 trailer order by 50 trailers," he added. "Thatdoesn't include the reduction of associated costs such as depreciation,cost of funds and maintenance. TrailerTRACS has exceeded our objectivesthus far, which helps to reinforce shareholder value by reflecting a netgain on our company's bottom line."

TrailerTRACS provides powerful features that benefit transportationcompanies like Covenant, including real-time monitoring of connect anddisconnect events; current trailer and truck identification, location, andstatus; exception-based alerts; and fully-automated transactions thatimprove the flow of load status while eliminating the need for driverintervention and allowing dispatcher anticipation of loaded and emptycalls. In addition, TrailerTRACS ensures protection against cargo lossesand provides load-based quality assurance information to shippers.Management of trailer capacity balance, one of the key features ofTrailerTRACS, helps Covenant determine the optimum amount of trailers touse for the greatest cost-effectiveness and customer satisfaction.

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

Covenant Transport is a full service transportation company based inChattanooga, Tenn., providing truckload and other transportation servicesthroughout the United States. Covenant operated a fleet of 3,602 trailersas of June 1998. For further information about Covenant Transport, pleasevisit the company's Web site at

Headquartered in San Diego, Qualcomm develops, manufactures, markets,licenses, and operates advanced communications systems and products basedon its proprietary digital wireless technologies. The Company's primaryproduct areas are CDMA wireless communications systems and products, theOmniTRACS® system (a geostationary satellite-based, mobile communicationssystem providing two-way data and position reporting services) and, inconjunction with others, the development of the Globalstar™low-earth-orbit (LEO) satellite communications system. Other Companyproducts include the Eudora Pro® electronic mail software, ASIC products,and communications equipment and systems for government and commercialcustomers worldwide. For more information on Qualcomm products andtechnologies, please visit the Company's web site at

Except for the historical information contained herein, this news releasecontains forward-looking statements that are subject to risks anduncertainties, including timely product development, change in economicconditions of the various markets the Company serves, as well as the otherrisks detailed from time to time in the Company's SEC reports, includingthe report on Form 10-K for the year ended September 28, 1997 and mostrecent Form 10-Q.

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Qualcomm, OmniTRACS, TrailerTRACS and Eudora Pro are registered trademarksof Qualcomm Incorporated. Globalstar is a trademark of Loral QualcommSatellite Services. All other company and product names are trademarks oftheir respective holders.

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