Press Release

Qualcomm Announces Signing of Commercial License for CDMA Infrastructure Products with Great Dragon Information Technology Corporation

Jul 2, 2001SAN DIEGO

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

SAN DIEGO and BEIJING -- July 2, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has signed a commercial license with Great Dragon Information Technology Corporation Ltd. (GDT), a leading manufacturer of telecommunications equipment in China. Under the terms of the royalty-bearing license agreement, Qualcomm has granted GDT a license under Qualcomm's CDMA patent portfolio to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1x/1xEV infrastructure equipment. The license grants GDT the right to use Qualcomm's technology and integrated circuits to make and sell cdmaOne and CDMA2000 equipment in China and worldwide. GDT becomes one of the first companies in the People's Republic of China to enter into a commercial license with Qualcomm.

"Qualcomm continues to build on its leadership and expertise in developing and delivering innovative solutions for the wireless industry," said Steve Altman, president of Qualcomm Technology Alliances. "We are pleased that GDT is one of the first manufacturers in the People's Republic of China that has entered into a commercial CDMA license with Qualcomm to provide advanced wireless communication products for the worldwide CDMA market."

The signing of the commercial license between GDT and Qualcomm brings to fruition a process begun early last year when Qualcomm and China United Telecommunications Corporation, the second largest wireless service provider in China, entered into a Framework Agreement for the licensing of Qualcomm's CDMA intellectual property to Chinese manufacturers. China United Telecommunications Corporation later formed a subsidiary, Unicom Horizon, to operate its CDMA networks. The successful completion of the license negotiations between Qualcomm and GDT reflects a continuation of efforts that will help accelerate the rollout and adoption of CDMA wireless services in China and worldwide.

GDT and many other Chinese telecommunication companies will benefit from the new opening of the CDMA Development Center in Beijing. Dr. Irwin M. Jacobs, chairman and CEO of Qualcomm is in China to open the Center, which will provide training, support and equipment testing services to manufacturers and mobile carriers in China, as well as to serve as a base through which to support research and development of 3G wireless standards based on CDMA. The Center will also support the transfer of hardware and software technologies for product development and manufacturing, as well as implementation methods to licensed manufacturers, carriers and government bodies in China.

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 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 2001 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 design and have manufactured significant quantities of CDMA components on a timely and profitable basis, 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 of Qualcomm Incorporated. OmniExpress and BREW are trademarks of Qualcomm Incorporated. cdmaOne is a trademark of the CDMA Development Group. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.

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