Press Release

Qualcomm Begins Production Shipping of Industry-Leading Fifth-Generation CDMA Chipset and System Software to Major Handset Manufacturers

Jan 27, 1999SAN DIEGO

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

SAN DIEGO -- January 27, 1999 -- Qualcomm Incorporated (NASDAQ: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced it has begun production shipping, on schedule, of its highly integrated fifth-generation CDMA chipset and system software for use in CDMA technology wireless handsets. The December shipment to Japanese, Korean and U.S. CDMA handset manufacturers represents a first in the wireless industry: The delivery of a chipset and system software solution providing wireless data rates of as high as 86.4 kilobits persecond (kbps).

Twenty-one of the leading CDMA handset manufacturers have agreed to purchase the MSM3000™ Mobile Station Modem MSM™ chipset and/or system software. Eight manufacturers from Japan, eleven from Korea, one from Taiwan and one from the United States are actively designing phones with several already receiving production quantities.

With this latest generation of chipset from Qualcomm, the company confirms its position as the wireless industry's leading semiconductor and software developer and provider. With data rates up to 86.4 kbps, the MSM3000 paves the way for the development of many new applications in wireless telecommunications. Handheld wireless devices using the chipset will have even faster speeds than personal computers equipped with standard modems, enabling the Internet and data services to be efficiently delivered to today's mobile customer.

"In 1999, the arrival of our new chipset solution will give consumers the opportunity to use wireless devices with features far beyond simple telephony," said Don Schrock, president of Qualcomm's ASIC Products."We've received a significant acceptance of the MSM3000 from a large number of manufacturers. This commitment to our fifth-generation chipset gives us the opportunity to price it very competitively and supports our intention to remain the leader in the development of semiconductor-software solutions for the wireless industry."

Qualcomm's complete CDMA chipset solution includes the industry-leading MSM3000 chipset and system software, and the IFT3000™ and IFR3000™fully integrated Intermediate Frequency (IF) chipset for CDMA handsets. Qualcomm's ASIC division introduced the MSM3000, the fifth-generation, single-chip MSM, in early 1998 and delivered samples to prospective customers in July. The low-power chip and system software enables design of small form factor handsets with very long stand-by times and much higher data-rate services. An estimated 200 hours of stand-by time is expected using an 800 mAh battery in CDMA mode and an approximate two time improvement of AMPS stand-by time. It is the first single-chip baseband solution for any cellular or Personal Communications Service (PCS) standard to enable data speeds up to 86.4 kbps.

The IFT3000 and IFR3000 are the first chips incorporating the complete IF functionality for a CDMA handset, from digital baseband converters to Automatic Gain Control (AGC), offering an area reduction of 45 percent over previous IF solutions and substantially lower power consumption.

Together Qualcomm's MSM3000 chip, IFT3000 and IFR3000 chipset, and Radio Frequency (RF) front end constitute the system hardware necessary for anIS-95A or IS-95B CDMA compliant handset.

"The entire MSM3000 feature set has been carefully developed in close interaction with customers in worldwide markets throughout the design and development process," said Johan Lodenius, vice president of marketing for Qualcomm's ASIC Products. "Our integrated chip and system software solution enables manufacturers to reduce development time, creates a broad range of products and facilitates design for local market adaptation."

Qualcomm ASIC Products Division is the leading developer and supplier of CDMA chipsets, hardware and software solutions and tools with more than 30 million MSM chips shipped worldwide. The ASIC Products Division supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; DENSO CORPORATION; FUJITSU LIMITED; Hitachi, Ltd.; LG Information andCommunications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.

Qualcomm Incorporated (NASDAQ: QCOM) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's major business areas include CDMA phones; Application Specific Integrated Circuits (ASICs); wireless infrastructure; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Qualcomm is headquartered in San Diego, Calif. Qualcomm's fiscal 1998 revenues exceeded U.S. $3 billion. For moreinformation, 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 abilityto 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, 1998, and most recent Form 10-Q.


Qualcomm and OmniTRACS are registered trademarks of Qualcomm Incorporated. MSM, MSM3000, IFT3000 and IFR3000 are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.

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