Press Release

Qualcomm Enters Into CDMA Modem Card License Agreement with AirPrime, Incorporated

Feb 24, 2000SAN DIEGO

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

SAN DIEGO -- February 24, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has entered into a CDMA technology modem card license agreement with AirPrime, Incorporated. Under the terms of the royalty-bearing agreement, Qualcomm has granted AirPrime a license under certain Qualcomm intellectual property to develop, manufacture and sell modem card products for wireless applications utilizing CDMA and High Data Rate (HDR) air interface technologies.

"We are pleased to license our technology to AirPrime for the development of CDMA and HDR modem equipment to meet the needs of the growing number of wireless users requiring wireless Internet connectivity," said Steve Altman, executive vice president and general manager of Qualcomm's Technology Transfer and Strategic Alliances Division.

"With this agreement, AirPrime is committed to making contributions to CDMA technology and supporting the growing demands for wireless Internet access," said Paul Sethy, CEO of AirPrime. "We look forward to working with Qualcomm to ensure users of HDR, a technology ideally suited for data, will take full advantage of its unique benefits."

HDR provides a spectrally efficient 2.4 Mbps peak rate in a standard 1.25 MHz channel bandwidth. Optimized for packet data services, HDR incorporates a flexible architecture based on standard Internet Protocol (IP). HDR's IP-based architecture allows flexible implementation of this wireless system in high-performance and cost-effective ways. As a complementary solution to voice networks utilizing operator's existing cell sites, towers, antennas and network equipment, HDR technology allows operators to leverage their current infrastructure investment and cellular/Personal Communication Services (PCS) networks. HDR can also be implemented as a stand-alone system using off-the-shelf IP backbone equipment. HDR is compatible with IS-95A, IS-95B and future cdma2000™ networks, enabling existing cdmaOne™ and cdma2000 service providers to obtain higher capacities and superior performance by optimizing voice and data spectrum separately, serving both applications from the same network.

Technical trials of HDR are expected to begin in 2000, and the marketing trials and commercial rollout are expected to occur during 2001. HDR supports e-mail, web browsing, e-commerce, telematics and many other applications while offering end users continuous, untethered access to the Internet and next-generation data services. HDR's versatility allows the technology to be embedded in handsets, laptops and handheld computers, and other fixed, portable and mobile devices.

AirPrime, Incorporated is a venture-backed company focusing on the OEM marketplace for next-generation CDMA modem cards used on worldwide PCS networks. AirPrime products are available in various form factors for use in laptops, personal digital assistants, personal computers, Internet appliances and other consumer products. The Company is headquartered in Santa Clara, California, in the heart of Silicon Valley. For more information, visit the company's web site at

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. Qualcomm owns patents which are essential to all of the CDMA wireless telecommunications standards which have been adopted or proposed for adoption by international and national standards setting bodies. Qualcomm has licensed its essential CDMA patent portfolio to more than 75 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 1999 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: the risk that the transactions contemplated by the agreement may not close, the technical and marketing trials may not be successful, HDR technology may not become commercially deployed, 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 the 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,OmniTRACS and Eudora are registered trademarks of Qualcomm Incorporated. cdmaOne is a trademark of the CDMA Development Group. cdma2000 is a trademark of the Telecommunications Industry Association. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. Windows is a registered trademark of Microsoft Corporation. Macintosh is a registered trademark of Apple Computer Inc. AirPrime is a trademark of AirPrime Incorporated. All other trademarks are the property of their respective owners.