Press Release

Innovative GSM1x Solution Embraced by Major Equipment Manufacturers

Mar 18, 2002SAN DIEGO

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

ORLANDO, Fla. -- March 18, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that leading equipment manufacturers Kyocera, Nortel Networks, Samsung Electronics, Sanyo, Spatial Wireless, TCL Mobile and Winphoria Networks support the development of GSM1x, a new and cost-effective technology evolution for Global System for Mobile (GSM) operators.

Nortel Networks plans to support GSM1x with CDMA2000 1X radio access and GSM core network equipment, and Samsung Electronics manufactures the CDMA2000 1X radio access infrastructure equipment. Spatial Wireless and Winphoria Networks will develop the GSM1x Mobile Switching Node (MSN), which interfaces with both the unmodified GSM core network and the unmodified CDMA2000 1X radio access. Kyocera, Sanyo and TCL Mobile manufacture the CDMA2000 R-UIM enabled handsets, which are software upgradeable to support GSM1x.

Qualcomm, Nortel Networks, Samsung Electronics, Spatial Wireless and Winphoria Networks will demonstrate this powerful technology solution, using commercial CDMA2000 1X handsets at CTIA Wireless, March 18-20, 2002 at the Orange County Convention Center in Orlando, Florida. The demonstration will include mobile-originated and mobile-terminated short message service (SMS) and voice calls, achieving high-speed data rates up to 153 kbps. These CTIA demonstrations follow a similar and successful live demonstration of the GSM1x solution at the 3GSM World Congress in Cannes, France, last month.

"Qualcomm is pleased to see numerous leading companies supporting the GSM1x solution, which signifies the viability of GSM1x as an alternative technology evolution for GSM operators," said Sanjay Jha, senior vice president of engineering, Qualcomm. "We look forward to working with these leading equipment manufacturers as they contribute to the 3G CDMA market to meet all operators' needs worldwide."

GSM1x enables convergence of a GSM/GPRS core service network with CDMA2000 radio access. GSM operators can seamlessly integrate this new solution by leveraging their existing GSM/GPRS core network equipment while enhancing the data capabilities and spectral efficiency of their radio access with commercially available CDMA2000 1X infrastructure. Using existing spectrum, GSM1x offers GSM operators increased voice and data capacity, supporting peak data speeds of up to 307 kbps in a 1.25 MHz channel. Common data throughput achieves up to 70-90 kbps, two to three times the throughput of standard dial-up modems. Additionally, the GSM1x solution seamlessly supports the CDMA2000 1xEV-DO air interface, allowing peak data rates of 2.4Mbps. The GSM1x solution supports SMS and position location, and introduces a GSM1x MSN to interface an existing and unmodified GSM core network with an unmodified CDMA2000 radio access network. GSM1x terminals utilize a standard GSM Subscriber Identity Module (SIM) and are subject to standard GSM authentication. As a result, operators will be able to offer global roaming and service transparency between CDMA2000 1X and GSM networks without compromising their current infrastructure.

Kyocera Corporation was founded in 1959 as a manufacturer of technical ceramics, a family of advanced materials with unique physical, chemical and electronic properties. Today, approximately majority of Kyocera's products are telecommunications-related, including wireless handsets and network equipment; semiconductor components; radio-frequency and microwave device packages; passive electronic components, crystal oscillators and connectors; and electro-optical products for fiber-optic telecommunications networks. Kyocera produced the world's first PHS phone with Internet access and e-mail functions, as well as the world's first handheld, wireless video phone. In addition, KDDI Corporation, Japan's second-largest provider of long-distance and wireless telecommunication services, was established by Kyocera's founder and Chairman Emeritus, Dr. Kazuo Inamori, and is approximately 13.5% owned by Kyocera. During the year ended March 31, 2001, Kyocera achieved consolidated global sales of 1,285 billion yen ($10.2billion) with net income of 220 billion yen ($1,742 million). The company employs approximately 51,000 people worldwide.

Samsung Electronics Co. Ltd. is a global leader in semiconductor, telecommunication and digital convergence technology. Samsung Electronics employs approximately 64,000 people in 89 offices in 47 countries. The company is the world's largest producer of memory chips, TFT-LCDs, CDMA mobile phones, monitors and VCRs. Samsung Electronics consists of four main business units: Digital Media Network, Device Solution Network, Telecommunication Network and Digital Appliance Network Businesses.

SANYO Electric Co., Ltd. was founded in 1947, and is a global leader in multimedia&mobile communications today. SANYO's products and services that offer complete customer satisfaction; concern for the environment - these are the ideals that inspire the SANYO Electric Group. SANYO's business cover a broad range of multimedia&information system, AV/information and communications equipment including mobile phones (PDC, PHS, CDMA), home appliances, industrial and commercial-use systems&equipment, electronic devices, batteries, housing and other products. SANYO is especially strong in LCD's, semiconductors, batteries, mobile phones and other keys of the IT revolution. SANYO is the world's largest manufacturer of digital cameras and nickel-metal hydride rechargeable batteries, also the world's second largest manufacture of LCD projectors.

Spatial Wireless, founded in January 2001, is a privately held company with a vision of next- generation wireline and wireless network architectures. Introducing leading-edge technologies to achieve this vision, Spatial Wireless breaks new ground in the way systems are developed in this revolutionary new market. Assembling a unique blend of competencies in systems architecture, hardware implementation and software development, Spatial Wireless enables switching solutions that accelerate the progression of packet-based wireless voice and data communications.

TCL Mobile Communication Co., Ltd., a leading Chinese mobile phone manufacturer, is committed to R&D, manufacturing and sales of mobile terminal products and is greatly supported by the State Development Planning Commission and the Ministry of Information Industry.

Winphoria Networks Inc. manufactures a commercially available next-generation packet-based Mobile Switching Center that dramatically increases the capacity of mobile wireless voice networks, decreases capital and operational costs, and supports 2G, 3G, and All-IP wireless technologies. Winphoria's unique MOBIOS™ operating system leverages a disaggregated architecture to support multiple open protocols as well as TDM and packet transport on the same platform. Winphoria's WMS-5000 MSC manages four times the Busy Hour Call Attempts supported by legacy MSCs in a platform 1/10th the size while delivering 99.999% system reliability. Winphoria is a private venture capital funded company based in Tewksbury, MA.

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; 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.


Qualcomm, OmniTRACS, OmniExpress and Eudora are registered trademarks of Qualcomm Incorporated. BREW and QChat are trademarks of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services, Incorporated. All other trademarks are the property of their respective owners.

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