Press Release

Qualcomm and Kodak Launch Digital Cinema Initiative

Mar 8, 2000SAN DIEGO

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

SAN DIEGO -- March 8, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM) today announced that it has signed an agreement with Eastman Kodak Company at the ShoWest conference in Las Vegas, Nev. to collaborate on testing of core technologies for the creation of a high-quality digital cinema system. Qualcomm's compression, encryption and watermarking techniques will be key technologies incorporated into a prototype digital projection system that Kodak is developing.

"Qualcomm is pleased to announce this close cooperation with Kodak," said Kim Haile, senior vice president and general manager of Qualcomm Digital Media. "Kodak has served the entertainment industry with success and innovation in the film business for decades. The Kodak digital cinema test bed will serve as a proving ground for the future migration of print film to digital media and electronic display. Qualcomm is proud that our compression, encryption, watermarking and software products have been deemed promising and deserving of inclusion in the test bed."

"To make digital cinema succeed in the future, it will require a fully integrated system involving a number of companies making contributions in their respective areas of expertise," says Eric Rodli, chief operating officer for Kodak's Entertainment Imaging Division. "Kodak intends to play an enabling role as 'integrator' in the development of this system. Compression, encryption and other issues need to be resolved. Qualcomm has developed unique expertise and very promising technology in these areas."

Qualcomm's encryption, compression and watermarking technologies lie at the core of the digital cinema architecture designed to protect digital movies from camcorder and other forms of piracy and reduce the mass amount of data for storage and bandwidth considerations without degrading image quality. Qualcomm expects to provide both hardware and software systems into the Kodak test bed and provide engineering assistance for the integration of its products into the test bed environment.

"We have interacted with studio, theater, post production, industry service providers, the creative community and equipment manufacturers to try and understand everyone's needs and expectations," said Gary Garland, vice president of Digital Cinema for Qualcomm. "We anticipate very favorable results from these tests and evaluations, and are eager to get industry feedback on the performance of our technology."

Kodak's Bob Mayson, general manager, cinema operations, said this is part of a broad initiative to help ensure that both film and digital exhibition technologies meet the rising expectations of consumers for a more engaging movie-going experience in the 21st century.

"Digital cinema has been gaining strong momentum in recent years as the industry recognizes that technology offers alternative means to reproduce and distribute entertainment products while extending the quality of the product for the consumer and decreasing vulnerability to theft," said Haile. "Qualcomm is poised for success in this new market. We've demonstrated that our signal processing will be transparent in terms of image quality. And, we've demonstrated processed and original material side-by-side for small technical audiences in Hollywood. The feedback could not have been more positive and we look forward to continuing to work with the industry."

For additional information about Kodak visit the Kodak Cinema Operations website

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 that have been adopted or proposed for adoption by standards-setting bodies worldwide. 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 theS&P500 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 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, OmniTRACS and Eudora 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. Kodak is a trademark of the Eastman Kodak Company. All other trademarks are the property of their respective owners.