Press Release

Qualcomm CDMA Technologies Announces 500 Million Chips Shipped

Aug 27, 2001SAN DIEGO

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

SAN DIEGO -- August 27, 2001 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced shipment of the Company's 500 millionth chip, which represents Qualcomm CDMA Technologies' (QCT) cumulative CDMA chips shipped across all product lines. From less than one million chips shipped prior to 1996, QCT has become the world's largest provider of chipsets and system software for CDMA wireless systems, making CDMA one of the fastest growing technologies of all time. The 500 million chips milestone validates Qualcomm's unique business model, emphasizing a close working relationship with customers and foundry partners to provide complete industry-leading system solutions within aggressive time-to-market parameters across specific market segments.

"Our latest generation of Internet-ready, multimedia chipsets and system software continues the tradition of leadership by enabling manufacturers worldwide to transition smoothly to third- generation systems, reducing time-to-market and cost while enabling the most advanced CDMA handsets, products and services available," said Don Schrock, president of Qualcomm CDMA Technologies. "With a consistent on-time delivery record in supplying innovative CDMA products and solutions for customer product development and high-volume production, QCT has helped drive the explosive growth of CDMA digital wireless technology around the world and leads the industry in enabling manufacturers to provide highly targeted solutions for a complete range of market segments."

"The CDMA Development Group congratulates Qualcomm on their delivery of the Company's 500 millionth chip, and for their commitment to providing system operators with solutions that support CDMA technology, regardless of the phase of evolution to third-generation," said Perry LaForge, executive director of the CDG. "As the wireless industry continues to grow, the CDG is confident that Qualcomm's efforts will continue to provide exceptional solutions to a global wireless market."

In less than three and a half years, the number of CDMA subscribers worldwide has increased dramatically - from just over four million in September 1997 to more than ninety million in March 2001, according to the CDG. Qualcomm continues its leadership role in driving CDMA digital wireless solutions as the world moves into third-generation (3G) technologies that are based on CDMA and provides an ongoing development program of CDMA chipset and system software solutions.

The shipment of the MSM5100™ Mobile Station Modem (MSM™) chipset marks QCT's 500 millionth chip milestone. The MSM5100 device, representing QCT's latest product in a line of CDMA2000 1X chipsets and system software that has consistently offered the most advanced wireless multimedia solutions in the industry, will provide handset manufacturers and 3G CDMA2000 1X system operators with the ability to deliver the highest level of integration for 3G handsets and quickly roll out new 3G services to their subscribers. Capable of supporting data rates of up to 307 kilobits per second (kbps) in the forward link, the MSM5100 device provides up to a 50 percent increase in standby times and up to twice the overall capacity for voice of IS-95A/B systems.

The MSM5100 solution incorporates QCT's Wireless Internet Launchpad™ suite, enabling a broad range of new terminal products, applications and Internet services, including the gpsOne™ position location solution and Bluetooth™, as well as multimedia features such as Qtunes™ Moving Picture Experts Group (MPEG-1) Layer-3 (MP3) player software and Compact Media Extension (CMX™) Musical Instrument Digital Interface (MIDI)-based multimedia software. The MSM5100 device also supports the Binary Runtime Environment for Wireless™ (BREW™) applications platform.

Along with other members of the MSM5xxx family and the MSM6xxx family, the MSM5100 chipset and system software reflects QCT's commitment to working closely with manufacturers and system operators worldwide to develop a broad array of tiered solutions that meet the growing and diverse needs of the CDMA wireless marketplace.

QCT has also always worked closely with its foundry partners in developing the best silicon technologies for our system solutions, including product qualification and procedures to ensure on-time volume production deliveries to meet the demanding goals of system costs and volume requirements for our end customers.

QCT (, a division of Qualcomm Incorporated, is a developer and supplier of CDMA chipsets, hardware and software solutions, and tools, with 163 million cumulative shipments of MSM chips worldwide. QCT offers wireless position location technology by SnapTrack™, a wholly owned subsidiary of Qualcomm. QCT supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: Acer Peripherals, Inc.; ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.

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 chipsets and system software; technology licensing; the 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. MSM, MSM5100, Wireless Internet Launchpad, gpsOne, Qtunes, CMX, SnapTrack, OmniExpress and BREW are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. Bluetooth is a trademark owned by Telefonaktiebolaget L M Ericsson, Sweden. All other trademarks are the property of their respective owners.