Press Release

Qualcomm Grants Development License to Teranex for Image Compression Technology

23. Apr. 2001SAN DIEGO

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

SAN DIEGO -- April 23, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), a pioneer in digital cinema technology, today announced it has entered into a development license agreement with Teranex, Inc., a leading provider of video computing platforms for broadcast, film, post production and streaming, for demonstration of Qualcomm's Adaptive Block Size Discrete Cosine Transform (ABSDCT) image compression technology on the Teranex video computer platform.

The patented ABSDCT image compression algorithm, developed by Qualcomm Digital Media, is the same groundbreaking technology demonstrated by Technicolor Digital Cinema at the motion picture industry trade show, ShoWest, in March 2001. Licensing the compression technology to Teranex further underscores Qualcomm's initiative to enable multiple manufacturers to provide interoperable equipment to the digital cinema industry.

"We are delighted that Teranex has selected our compression technology," said Kim Haile, senior vice president of Qualcomm and president of Qualcomm Digital Media. "Our technology enables Teranex to demonstrate real-time cinema quality encoding applications on their platform."

This technology will be demonstrated at the upcoming National Association of Broadcasters (NAB) 2001 Conference to be held in Las Vegas from April 23-26, 2001. Both Qualcomm and Teranex representatives will be in attendance to explain the technology, its application to digital cinema and other high-quality applications, and the high-performance of the Teranex video computer platform.

"We are very pleased that Qualcomm is a part of our open platform strategy," said Mike Baron, president and CEO of Teranex. "Qualcomm's ABSDCT technology will enable real-time digital imaging solutions that harness the power of the video computer to address the particular product requirements of our development partners."

The ABSDCT algorithm reduces in size, the amount of digital information needed to represent high-quality digital images, such as in a digital cinema feature, by as much as 35 to 40 times. These efficient coding rates save storage and transmission cost for digital cinema systems. The ABSDCT algorithm divides a digital image into regions, or 'blocks,' that vary in size from 2x2 to 16x16 pixels. Each block is then transformed to the discrete cosine domain and processed to remove information from the image that will not be visible. The ABSDCT decoder reverses this process, producing an image that is particularly suited to meet the requirements for high-quality images on theatre screens. ABSDCT is also well suited to a number of high-end digital media applications that require superior image quality along with economical implementation, including digital motion image cameras, post-production equipment, digital mastering and archive systems, and high-quality distribution networks.

Teranex, Inc. is a leading provider of scalable, real-time video computing platforms, applications and services for broadcast, film, post-production and Internet video. The company manufactures the industry's first real-time video computer which runs the Xantus format conversion, the Starfront noise reduction and pre-compression processing, the Star-up integrated up conversion and advanced noise reduction, and the Starstream encoding system, all applications developed by Teranex. The company also provides turnkey services for encoding and streaming video to the Internet. Clients include the broadcast, entertainment, advertising and telecommunications industries; corporations; educational institutions; and the government. Founded in 1998 and headed by President/CEO Mike Baron, the company is headquartered in Orlando, FL and maintains sales offices in Los Angeles, CA; New York, NY; Philadelphia, PA; Denver, CO; London, England; and Sydney, Australia. For more information, visit http://www.teranex.com.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's Code Division Multiple Access (CDMA) digital technology. The Company's business areas include CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; Eudora® e-mail software; 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 100 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 the Company's ability to successfully obtain industry acceptance of its ABSDCT technology, 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.

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