Press Release

Qualcomm do Brasil Establishes New Factory in Sao Paulo

Aug 18, 1998SAN DIEGO

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

SAO PAULO, BRAZIL - August 18, 1998 - Qualcomm do Brasil, S. A., a subsidiary of Qualcomm Incorporated (NASDAQ: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a new Qualcomm phone manufacturing facility in Sao Paulo, Brazil, with initial manufacturing capacity of approximately 300,000 phones per year. Qualcomm will continue to take the necessary steps to meet the needs of the Brazilian market, increasing manufacturing lines and capacity as market conditions warrant.

Qualcomm do Brasil will commence production of Qualcomm's advanced CDMA digital dual-mode Q phone in September with shipments of the new phones expected to begin in October of this year.

"Our local manufacturing operation represents our strong commitment to Brazilian carriers and consumers to support their tremendous demand for high-quality wireless phones," said Marco Aurelio Rodrigues, president of Qualcomm do Brasil. "Serving one of the largest markets of wireless products in the world, Qualcomm do Brasil looks forward to accelerating its production ramp to meet the increasing requirements of carriers in Brazil who seek to offer the exceptional voice quality and performance of Qualcomm's CDMA digital technology and products to their customers."

Valerijonas Seivalos Jr., vice president, manufacturing operations of Qualcomm do Brasil said, "Qualcomm do Brasil is actively hiring a well-trained, highly motivated team of seasoned executives and a production staff with high-quality, high-volume manufacturing experience to ensure the greatest levels of manufacturing quality and output."

Qualcomm do Brasil, established in 1995, was formed to meet the growing wireless demands of the Brazilian market. Qualcomm do Brasil, working with Conexão, a wholly-owned subsidiary of Flextronics International Ltd., is expected to rapidly increase manufacturing capacity to meet the tremendous demand in the Brazilian marketplace. The factory will manufacture Qualcomm's Q phone series and the QCP phone series of CDMA digital mobile phones. By associating with Flextronics to manufacture its phones in a newISO 9002 certified factory, Qualcomm do Brasil has demonstrated a significant step towards meeting the needs of this important market. Qualcomm's CDMA phones deliver crystal clear calls, with extended talk and standby times, enhanced privacy and support a variety of enhanced features such as incoming caller ID, short messaging service and voice mail alert.

Based in Sao Paulo, Brazil, Qualcomm do Brasil is a subsidiary of Qualcomm Incorporated. Qualcomm do Brasil oversees manufacturing, sales and marketing of Qualcomm CDMA digital phones and marketing and sales of CDMA infrastructure for CDMA digital carriers in Brazil and greater Latin America. Qualcomm phones are marketed and sold in Brazil, the United States and other countries throughout the world.

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, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis and those related to performance guarantees, 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, Eudora and Eudora Pro are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.