Press Release

Qualcomm and U S WEST Sign Handset Supply Agreement Valued up to $120 Million

May 11, 1999SAN DIEGO

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

SAN DIEGO -- May 11, 1999 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and U S WEST (NYSE: USW), one of the largest telecommunications services suppliers in the United States, today announced they signed a twelve-month agreement valued up to $120 million for U S WEST to purchase Qualcomm CDMA digital PCS phones. This agreement provides U S WEST with a variety of Qualcomm handsets, including the new pdQ™ smartphone and Thin Phone, for distribution throughout U S WEST's regional CDMA digital network. Qualcomm is the major supplier of wireless handsets to U S WEST, which will be the first CDMA digital PCS service provider to offer Qualcomm's Thin Phone to customers in the United States.

Qualcomm's latest generation of phones includes the Thin Phone, the first CDMA data-ready handset with an internal battery and hot-swappable extended battery options, and the pdQ smartphone, the industry's first integrated CDMA digital wireless phone and 3Com Palm Computing® based organizer. All of Qualcomm's new models provide CDMA technology's superior voice clarity and security as well as fewer dropped calls. In addition, the new handsets support state-of-the-art phone, pager, email, voice-mail and data transfer features, including support of wireless microbrowsers for Internet access.

"This agreement reinforces our strong relationship with U S WEST," said David McDowell, senior vice president of sales and marketing for Qualcomm Consumer Products. "With Qualcomm's new, data-ready handsets, U S WEST will provide its customers with the most advanced CDMA digital technology and communications services available, including wireless Internet access from their phone later this year."

"U S WEST is committed to providing our consumers with the best solutions to meet their communications needs," said Peter Mannetti, president and CEO, U S WEST Wireless. "Qualcomm's CDMA digital handsets complement our entire range of telecommunications solutions, not only our current services, but also the expanded data and Internet technology that will soon be available."

U S WEST (NYSE: USW) provides a full range of telecommunications services -- including wireline, wireless PCS, data networking, directory and information services -- to more than 25 million customers nationally and in 14 Western and Midwestern states. More information about U S WEST can be found on the Internet at

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; integrated CDMA chipsets and system software; technology licensing; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Headquartered in San Diego, Calif., Qualcomm is a FORTUNE 500® company with fiscal 1998 revenues in excess of U.S. $3 billion. For more information, 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 27, 1998, and most recent Form 10-Q.

Qualcomm and OmniTRACS are registered trademarks and pdQ is a trademark of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.

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