Press Release

Qualcomm Announces Signing of Commercial License for CDMA Infrastructure Products with Eastern Communication Company Ltd

Sep 4, 2001SAN DIEGO

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

SAN DIEGO and BEIJING -- September 4, 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 agreement with Eastern Communication Company Ltd., (Eastcom), one of the leading manufacturers of telecommunications equipment in China. Under the terms of the royalty-bearing license agreement, Qualcomm has granted Eastcom a license under certain Qualcomm CDMA patents to develop, manufacture and sell cdmaOne™ and third-generation (3G) CDMA2000 1X/1xEV infrastructure equipment. The license grants Eastcom the right to use Qualcomm's technology and chipsets to make and sell cdmaOne and CDMA2000 equipment in China and worldwide. Eastcom becomes the third company, after ZTE and Great Dragon Telecom, in the People's Republic of China to enter into a commercial infrastructure equipment license with Qualcomm.

"Qualcomm continues to develop and deliver innovative solutions for the wireless industry," said Steve Altman, president of Qualcomm Technology Alliances. "We are pleased to enter into this agreement, which enables Eastcom to provide advanced wireless communication products for the China CDMA market."

"Eastcom has been an advocate of CDMA development in China," said Mr. Jixing Shi, chairman of Eastcom. "This agreement will allow Eastcom to soon push its CDMA products into commercial phase. We are pleased to work with Qualcomm to help contribute to the rapidly growing worldwide CDMA market."

Eastcom is a listed company with eight years of history in manufacturing and sales of mobile communications equipment. Its turnover in 1997 reached RMB 5 billion (USD $400 million), with a profit of RMB 400 million (USD $50 million). The Company plays an important role in developing products for its national industry in China. Eastcom plans to provide 10 kinds of competitive mobile phones each year from 1999 onward. It encourages new ideas and innovations to forge a new path for the development of China's communications industry with national characteristics. It will always ally with other companies in this field to establish a state-level mobile communications research center in order to alter the current development situation of low technical level with dispersed and duplicated investment. For more information, please visit the Company's Web site at

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 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.