Press Release

Qualcomm Announces New Licensing Program For Startup and Early Stage Companies

SAN DIEGO -- December 5, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced a new CDMA license program designed to allow selected startup and early stage companies to issue equity to Qualcomm as a means of paying part of the up-front fees payable under Qualcomm's CDMA license agreements. The new program will not affect the ongoing royalties payable under Qualcomm's CDMA license agreements.

"Our standard CDMA license agreement requires the payment of a multi-million dollar up-front fee in addition to ongoing royalty payments as the licensee begins to ship products," said Steve Altman, executive vice president of Qualcomm and president of Qualcomm Technology Alliances. "Start-up or early-stage companies with impressive engineering talent and ideas have or may desire to enter into a CDMA license agreement and to establish a closer relationship with Qualcomm. Some of these companies prefer not to pay the up-front fee in cash, usually to preserve their cash to fund R&D. In certain cases, Qualcomm will accept equity in lieu of cash. Qualcomm stands to benefit not only if the value of the equity increases, but also as these talented resources direct their activities to developing new CDMA products, features and functionality. We believe that such resources focused on CDMA around the world help accelerate the overall growth of the CDMA market and wireless usage."

As part of the new licensing program, Qualcomm has already received equity from COM DEV International and Axesstel Incorporated, and is currently in discussions with a number of other companies. For more information on Qualcomm's licensing program, please call 1-858-651-2493 or email

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; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™. Qualcomm owns patents that 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 90 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® 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 whether the licensees in which Qualcomm receives equity will succeed and whether the equity will have value, the extent and speed to which CDMA is deployed, 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 24, 2000, and most recent Form 10-Q.


Qualcomm, OmniTRACS and Eudora are registered trademarks and OmniExpress is a trademark 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.