Press Release

Qualcomm and SAIC Team Awarded $2 Million Contract from U.S. DOT to Conduct Field Test of Untethered Trailer Tracking

Aug 12, 2003SAN DIEGO

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

SAN DIEGO -- August 12, 2003 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that the Company and Science Applications International Corporation (SAIC) have been awarded a $2 million contract from the U.S. Department of Transportation's Federal Motor Carrier Safety Administration (FMCSA) for the development and field testing of an untethered trailer asset management system for high-value or high-security-risk loads. The system will provide sophisticated on-board hardware, advanced power management, network services and extensive data integration capabilities using state-of-the-art, tri-mode (digital cellular, PCS and analog) communications. Qualcomm and SAIC were one of three teams solicited to submit proposals in FMCSA's Request for Proposal process in early July.

"We are very pleased to be part of the team awarded this contract from the FMCSA," said Chris Wolfe, president of Qualcomm Wireless Business Solutions. "This operational field test will demonstrate the benefits of untethered trailer tracking systems, which improve productivity and security for the trucking industry. Such systems enable greater safety and more efficient use of our nation's highways."

The field operational test will quantify the costs and benefits associated with systems designed to track trailers when they are not attached to a tractor. The test is expected to assist companies in their decisions to deploy this type of technology for more effective trailer utilization and improved safety and security in the movement of hazardous materials and high-value cargo. SAIC is the prime contractor for the project with Qualcomm as the technology integrator. Trucking companies currently planning to participate in the test include Super Service Inc., Somerset, Ky.; R&R Trucking, Duenweg, Mo.; and Paschall Truck Lines Inc., Murray, Ky. Operational field testing is scheduled to begin in the summer of 2004.

In the test, Qualcomm will use its TrailerTRACS® untethered tracking system, which is currently under development. The Company will deploy the latest digital cellular technology for remote asset monitoring, a multimode CDMA digital module with analog back-up capability. This will allow the untethered trailer tracking product to work on today's third-generation (3G) cellular networks with unmatched bandwidth capabilities. Deployment using 3G networks ensures that the systems will function for many years without the risk of obsolescence.

Since 1989, Qualcomm has provided its tethered tracking system to more than 35,000 trailers within the NAFTA region. TrailerTRACS provides trailer ID, drop-and-hook notification, location, status and information when connected to an OmniTRACS® equipped tractor. The untethered trailer tracking system being developed will offer these same features plus a variety of other options, including door and cargo sensors, geofencing, over-the-air update capabilities, multiple delivery solutions to Web and AS400 platforms, and visibility of assets and loads whether or not a trailer is connected to a tractor.

Qualcomm is the global leader in high-value wireless data solutions for the trucking industry with a Network Management Center that processes more than seven million transactions each day. The Company has shipped nearly 479,000 mobile communications systems to businesses in more than 39 countries on four continents.

Qualcomm Incorporated ( is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2003 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 extent and speed to which the Company's TrailerTRACS untethered tracking system 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, 2002, and most recent Form 10-Q.


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