Press Release

Qualcomm Announces Redemption of 5 3/4% Trust Convertible Preferred Securities

Jan 6, 2000SAN DIEGO

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

SAN DIEGO -- January 6, 2000 -- Qualcomm Incorporated (NASDAQ: QCOM) today announced it has issued a call for the redemption of its 5 3/4% Trust Convertible Preferred Securities ("TCPS") on March 6, 2000. The redemption price will be $51.00 per TCPS plus accrued and unpaid interest. Alternatively, holders may elect to convert each TCPS into 5.5056 common shares of Qualcomm and 0.17205 common shares of Leap Wireless International, Inc. (NASDAQ: LWIN) at any time prior to 5:00 p.m. on March 3, 2000. Upon conversion, holders would receive QCOM and LWIN common stock with an aggregate value of approximately $873.00 per TCPS based upon closing stock prices on January 5, 2000.

The Company anticipates that substantially all holders will elect to convert TCPS into common shares rather than allow redemption. Qualcomm originally issued $660 million of TCPS in February 1997 through Qualcomm Financial Trust I. Approximately 60% of those securities have since converted into stock. No additional dilution to earnings is expected from remaining conversions, because the Company's financial statements have already reported fully diluted earnings per share assuming the conversion of all TCPS. Holders seeking to convert TCPS into common stock must contact their broker to arrange for surrender of the securities.

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 business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index, is a 1999 FORTUNE 500® company and ranked number 14 on FORTUNE's "100 Best Companies to Work for in America."

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 26, 1999, and most recent Form 10-Q.


Qualcomm, Eudora, and OmniTRACS are registered trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. Windows is a registered trademark of Microsoft Corp. Macintosh is a registered trademark of Apple Computer Inc. All other trademarks are the property of their respective owners.

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References to "Qualcomm" may mean Qualcomm Incorporated, or subsidiaries or business units within the Qualcomm corporate structure, as applicable.

Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses. Qualcomm products referenced on this page are products of Qualcomm Technologies, Inc. and/or its subsidiaries.

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Nothing in these materials is an offer to sell any of the components or devices referenced herein.