Press Release

Qualcomm Announces 600 Million Chips Shipped to Date

14 Mar 2002SAN DIEGO

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

SAN DIEGO -- March 14, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced it has passed a major milestone with the shipment, by its Qualcomm CDMA Technologies (QCT) division, of a cumulative total of more than 600 million chips of all types. Within this total, over 200 million Mobile Station Modem™ (MSM™) chipsets and system software have been shipped to customers worldwide since 1995. With these new milestones, Qualcomm continues to be the world's largest provider of chipsets and system software for CDMA wireless systems.

The production shipment milestone for these highly integrated MSM handset semiconductors was reached as the global growth for CDMA continues to expand from voice into wireless data. Third-generation CDMA2000 1X networks have now been deployed in South Korea, North America and Latin America; with additional CDMA2000 1X deployments planned this year. There are more than 110 million CDMA subscribers worldwide (Source: CDMA Development Group), including more than five million CDMA2000 1X subscribers in South Korea. The first high data rate CDMA2000 1xEV-DO network - providing peak data rates of 2.4 Mbps - has also been launched in South Korea.

"Supporting the world's largest customer base of wireless device manufacturers, Qualcomm addresses opportunities for the wireless industry with its next generation of Internet-ready, multimode and multiband chipsets and system software," said Don Schrock, president of Qualcomm CDMA Technologies. "Our consistent on-time delivery record, combined with our industry-leading CDMA R&D, has helped drive the tremendous growth of digital wireless technology. We are committed to helping our customers continue the expansion into next-generation technologies."

With the explosion of digital wireless communications, the demand for low-cost voice service, product segmentation and expanded product portfolios, and the push for new data services, Qualcomm's end-to-end solutions are being developed on three parallel fronts:

  • The core IS-95A/B MSM3xxx family, which addresses higher levels of system integration, lower system costs and increased standby times
  • The MSM5xxx family of chipsets, focusing on next-generation technologies and the emergence of smart phones and data-centric terminals based on 3G CDMA2000 1X, CDMA2000 1xEV-DO and WCDMA technologies
  • The MSM6xxx family, offering 3G chipsets that will enable multimode, multiband devices that will enable true worldwide roaming with improved voice and data capacities. The MSM6xxx family of chipsets and system software incorporates Qualcomm's revolutionary radioOne™ direct conversion architecture that eliminates the need for IF components, which will reduce printed circuit board (PCB) area and Bill of Material (BOM) costs for future handsets and other wireless devices.

With the accelerating demands to introduce next-generation data services - as well as terminals and networks - in an easy migration path that is as cost-efficient as possible, Qualcomm has worked with equipment manufacturers and network operators worldwide to bring to market a variety of CDMA solutions targeted for specific market needs.

Qualcomm products and technologies that address these needs include the Wireless Internet Launchpad™ suite of software applications and technologies, enabling a broad range of new terminal products and Internet services, including digital audio and video, connectivity, position location, advanced user interface and removable storage functionality. Also, the breakthrough SnapTrack™ and gpsOne™ position location solutions that are already in commercial deployment, offer robust position location information for wireless handsets under the most challenging conditions, whether in concrete-and-steel high-rises, convention centers, shopping malls or urban canyons.

Qualcomm Incorporated (www.qualcomm.com) 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; QChat™ push-to-talk technology; 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 30, 2001, and most recent Form 10-Q.

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