Press Release

Qualcomm Wins Wireless Local Loop Contract with Shenda Telephone Company for CDMA System in China

Sep 10, 1998SAN DIEGO

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

SAN DIEGO -- September 10, 1998 -- Qualcomm Incorporated (NASDAQ: QCOM) has been awarded a contract to deploy a wireless local loop (WLL) system for the Shenda Telephone Company, an established telecommunications operator in China. The system is expected to support 10,000 subscribers and will be deployed in the Shenzhen Special Economic Zone of China, which includes the Luo Hu and Fu Tian areas. The first phase of deployment of the new 1900 MHz cdmaOne™ (IS-95 Code Division Multiple Access) system is currently expected to be completed in late 1998.

"After two years of thorough analysis, Shenda is convinced that Qualcomm's CDMA WLL offers the highest capacity and best voice quality available, which addresses the needs of the wireless market in Shenzhen," said Jian Qiang Liao, general manager of Shenda Telephone Company.

"Qualcomm's agreement with Shenda solidifies our presence in China and demonstrates our commitment to the development of telecommunications throughout the Asia region," said Larry Hartigan, regional vice president North Asia, for Qualcomm's Wireless Infrastructure Division. "Increased teledensity has proven to be an important instrument in economic development and Qualcomm is excited to be a part of the growth and advancement of China's telecommunications services."

The first phase of deployment is scheduled to begin immediately and the system will be commercially launched after certification and type approval is received. The system will utilize Qualcomm's 1900Mhz QCell™ base stations and QCore™ 22X integrated switch and base station controllers. Qualcomm's QCore 22X integrates the functionality of a mobile switch and a base station controller and is fully scalable for simple and cost-effective capacity expansion. Qualcomm will also supply a full menu of services, including training, program management, installation, commissioning and network planning using the industry's leading QEDesign® network planning software.

"We are honored to bring the world's most advanced digital wireless technology, cdmaOne, to the people of Shenzhen," said Chris Davey, vice president of business development for Qualcomm's Wireless Infrastructure Division. "Shenda will be one of the first operators in the world to deploy Qualcomm's QCell 500 series product, the industry's smallest CDMA base station solution. The QCell 500 series' self-contained, energy-efficient, lightweight design provides coverage to challenging network areas."

Qualcomm is the supplier of an operational CDMA WLL trial system for the Beijing Telecommunication Administration (BTA) and has emerged as a leader in the CDMA WLL arena with commercial systems in Russia and India and deployments underway throughout Asia-Pacific, Africa and the Commonwealth of Independent States. The company is also the turnkey supplier of digital mobile systems in Chile, Mexico, Australia and the United States. As the pioneer of CDMA technology, Qualcomm continues to invest in research, development and standardization of new CDMA features and services, as well as third-generation digital wireless technologies.

Headquartered in San Diego, Calif., 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, 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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