Press Release

Qualcomm CDMA Technologies' MSM3000 Mobile Station Modem Drives Worldwide Conversion to CDMA

Sep 21, 1999SAN DIEGO

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

SAN DIEGO September 21, 1999 Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced unprecedented success for its MSM3000(tm) Mobile Station Modem MSM(tm) solution. The company's fifth-generation CDMA chipset and system software is enabling manufacturers and service providers globally to quickly develop and deploy feature-rich products and services to consumers worldwide.

Eight CDMA handset manufacturers Denso Corp., Hitachi, Ltd., Hyundai Electronics Industries Co., Ltd., LG Information and Communications, Ltd., Qualcomm, Samsung Electronics Ltd., Sanyo Electric Co., Ltd., and Toshiba Corporation have already begun volume shipments of handsets based on the MSM3000 chipset and system software to markets including Australia, Canada, Japan, Korea and the United States. Another 21 manufacturers are actively designing products based on the MSM3000 chipset and system software solution.

In addition, carriers are launching sophisticated new services supported by the MSM3000 feature set. Carriers in Korea conducted the world's first High-Speed Packet Data (HSPD) trials this summer, with SK Telecom becoming the first to commercially deploy an HSPD service in Korea in August. Japan's DDI CORPORATION and IDO CORPORATION are expected to introduce HSPD services before the end of the year. The HSPD services transfer packet data at speeds of up to 64 kilobits per second (kbps) which is faster than existing fixed line networks and more than four times as fast as existing wireless networks.

Worldwide CDMA subscriber growth increased 171 percent in the year ended June 30, 1999, reaching nearly 35 million subscribers, according to the CDMA Development Group. Asia and North America led the way, more than doubling their subscriber growth, followed by Latin America, where 28 operators in 12 countries have now committed to CDMA technology.

"Qualcomm continues to be the market leader in CDMA chipsets and the company's hardware and software development is enabling a wide variety of OEMs to produce CDMA phones with advanced feature sets, including high speed packet data services," said Allen Leibovitch, Program Manager for International Data Corporation (IDC) Semiconductors, the research arm covering components and peripherals for IDC, the world's leading provider of information technology data, industry analysis and strategic and tactical guidance to builders, providers and users of information technology.

"Our commitment to our customers is founded upon the on-time delivery of leading CDMA technologies and offers a solid product roadmap with full technical support both in the lab and in the field," said Don Schrock, president of Qualcomm CDMA Technologies. "Our adherence to this high-level of customer interaction and support is critical to the success of our customers. The positive global response to the MSM3000 chipset and system software is the result of years of joint product planning with our customers, further demonstrating our firm commitment to bringing CDMA handsets to market."

Qualcomm CDMA Technologies' MSM3000 chipset and system software continues to exceed its program goals. The MSM3000 chipset and system software sampled on time in September 1998 and production shipments began, as scheduled, in December 1998. The first MSM3000-based handsets became commercially available in Japan and Korea this past April. In Japan, TOSHIBA CORPORATION, SANYO Electric Co., Ltd and Hitachi, Ltd. deployed MSM3000-based handsets to support the country's first nationwide cdmaOne(tm) network, jointly launched by DDI CORPORATION and IDO CORPORATION on April 14, 1999. In Korea, LG Information and Communications, Ltd. and Samsung Electronics Ltd. supplied the first commercial MSM3000-based handsets achieving 200 hours of standby time.

Selected for its superior performance and industry-leading features, the MSM3000 chipset and system software remains the only hardware and software solution available in production quantities that supports IS-95B with data rates up to 86.4kbps and up to 200 hours of standby time.

Release 3.0 of the MSM3000 system software which included support for HSPD shipped on time in May 1999. Version 4.0 of the software is expected to be initially available later this month and commercially available, as scheduled, in December. Version 4.0 includes voice enhancements, full compliance with IS-95B, improved handoff, call setup, roaming indication, incoming call forwarding, neighbor searching and pilot reporting.

Qualcomm CDMA Technologies is the leading developer and supplier of CDMA chipsets, hardware and software solutions and tools with more than 50 million MSM chips shipped worldwide. The division supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: Acer Peripherals, Inc., ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; DENSO CORPORATION; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.

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(r) and portions of the Globalstar(tm) system. Headquartered in San Diego, Calif., Qualcomm is included in theS&PIndex and is a 1999 FORTUNE 500(r) 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, 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, OmniTRACS is a service mark, and MSM and MSM3000 are trademarks of Qualcomm Incorporated. cdmaOne is a trademark of the CDMA Development Group. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated.

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