Press Release

Sprint Signs Agreement Valued at Approximately $400 Million with Qualcomm For the Purchase of CDMA Digital Handsets

Jul 20, 1999SAN DIEGO

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

KANSAS CITY -- July 20, 1999 -- Sprint's wireless division, Sprint PCS, (NYSE: PCS) and Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced an agreement valued at approximately $400 million for the purchase of Qualcomm's CDMA all-digital PCS phones. This agreement provides Sprint PCS with Qualcomm's new Internet-capable Thin Phone and pdQ smartphone for distribution throughout Sprint PCS's 100 percent digital, 100 percent PCS nationwide CDMA digital network. Sprint PCS is the nation's fastest growing wireless carrier with service in more than 280 metropolitan markets nationwide. Shipments to Sprint of the Qualcomm Thin Phone, incorporating the™ UP.Browser™ microbrowser, are scheduled to begin later this summer.

"With the addition of Qualcomm's advanced new Internet-ready phones, Sprint PCS offers businesses and consumers a new level of communication service and information access," said Andy Sukawaty, president for Sprint PCS. "The Sprint PCS network provides the only all-digital nationwide network that was built from the ground up to offer a new level of wireless clarity and soon nationwide Internet Access with these browser-equipped and easy-to-pocket new phones."

"Qualcomm's new Thin Phone follows on the success of the popular QCP series to offer Sprint PCS customers exceptional voice quality in an ultra-thin, extremely lightweight package," said Dr. Paul E. Jacobs, president, Qualcomm Consumer Products. "With Sprint PCS' nationwide CDMA network, users will have the freedom to access the Internet from wherever they are."

The Qualcomm Thin Phone and pdQ smartphone support standard Internet protocols, enabling end-to-end security for wireless applications. The pdQ smartphone is the only smartphone to offer the popular Palm Computing® platform and support full-time access to the Internet based on standard Internet protocols. The phones will be co-labeled with the Qualcomm and Sprint PCS brands. Sprint PCS will distribute Qualcomm's Thin Phone and the pdQ smartphone to customers through Sprint PCS retail stores and direct sales channels, as well as major third-party retail and electronics stores.

The new Qualcomm Thin Phone incorporates the Company's latest integrated CDMA Mobile Station Modem (MSM™) chipset, provides 2.5 hours of continuous talk time or up to 80 hours of standby time with its included standard lithium ion battery. The optional external battery, purchased separately, provides talk time of up to 10 hours or standby times of up to 17 days. The phone itself is so thin and light, weighing in at just over 4 ounces, that it is as comfortable in your hand as it is in your pocket.

The Thin Phone will be available to Sprint PCS customers in two models: a single-mode 1900 MHz CDMA all-digital PCS single-mode phone, and a dual-band, dual-mode CDMA all-digital PCS and analog cellular phone. Both phones support state-of-the-art phone, paging, voice mail and data transfer features. They offer a five-line backlit LCD display and have two smart keys that enable easy navigation through the user interface menu. The phones include a customizable phone directory with 99 memory locations. New technology called Enhanced Variable Rate Coder (EVRC) is included to support increased network capacity.

The new Qualcomm pdQ 1900 MHz CDMA Digital PCS smartphone features a flip-down phone keypad for easy call dialing and a large, 160-by-240 pixel LCD touch screen for displaying information and data entry. Any number in the pdQ smartphone's address book can be dialed simply by tapping on that name with the included stylus or dialing from the pdQ smartphone's keypad. Users can input data three ways: through Palm Computing's Graffiti® power writing software, the on-screen keyboard or though a personal computer's keyboard when connected to the pdQ smartphone with the included HotSync® technology. Using HotSync, users can transfer and synchronize information between the pdQ smartphone and a personal computer, including wireless synchronization of Lotus Notes and Microsoft Exchange data via the Sprint PCS network. The pdQ smartphone ships with a charging/synchronization cradle, lithium ion battery and a headset that enables users to talk on the phone while simultaneously using the PDA portion of the unit.

Suggested retail price for the QCP-1960 is $99.99, for the QCP-2760 is $129.99 and for the pdQ is $799.99. Both models of the Thin Phone and the pdQ phone will be available through Sprint PCS later this year.

Sprint PCS and Yahoo! recently announced an agreement to offer Yahoo! Web content and services to Sprint PCS wireless subscribers using Sprint PCS phones. Under the terms of the agreement, Sprint PCS and Yahoo! will jointly provide a range of co-branded Sprint PCS and My Yahoo! Internet information services, including e-mail, to both companies' users. The companies expect to make the services available in the fourth quarter of 1999. The Thin Phone is one of the many Sprint PCS phones expected to deliver these services.

Sprint PCS operates the largest 100 percent digital, 100 percent PCS nationwide wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities across the country. Sprint PCS has licensed PCS coverage of nearly 270 million people in all 50 states, Puerto Rico and the U.S. Virgin Islands. For more information, visit the Sprint PCS web site at . Sprint PCS is a wholly owned tracking group of Sprint Corporation trading on the NYSE under the symbol "PCS."

Sprint is a global communications company at the forefront in integrating long distance, local and wireless communications services and one of the world's largest carriers of Internet traffic. Sprint built and operates the United States' only nationwide all-digital, fiber optic network and is a leader in advanced data communications services. Sprint has $17 billion in annual revenues and serves more than 17 million business and residential customers.

Qualcomm Incorporated ( ) 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 traded on the Nasdaq under the ticker symbol "QCOM."

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, Qualcomm'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 Qualcomm serves, as well as the other risks detailed from time to time in the Qualcomm'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 and MSM are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. PalmPilot and Palm III are trademarks, and Palm Computing, Graffiti and HotSync are registered trademarks of Palm Computing, Inc., 3Com Corporation or its subsidiaries.

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