Press Release

Qualcomm Updates Financial Guidance for Second Fiscal Quarter Ending March 28, 2004

Higher Anticipated Revenues and Earnings Due to Record Chipset Demand and Strong CDMA Growth

Feb 23, 2004SAN DIEGO

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

Qualcomm Incorporated (Nasdaq: QCOM) today updated its financial guidance for the second fiscal quarter ending March 28, 2004.

The following statements are forward-looking and actual results may differ materially. Please see description of certain risk factors in this release and Qualcomm's reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks.

Based on the current business outlook, we now anticipate second fiscal quarter revenues excluding the Qualcomm Strategic Initiatives (QSI) segment to increase approximately 16-18 percent year-over-year and total Qualcomm revenues to increase approximately 13-15 percent year-over-year. We now anticipate second fiscal quarter earnings per share excluding the QSI segment to be $0.48-$0.50, an increase of 26-32 percent year-over-year. We now expect total Qualcomm earnings per share to be approximately $0.47-$0.49, including an estimated $0.01 loss per share attributed to the QSI segment. These estimates are based on the shipment of approximately 31-32 million Mobile Station Modem™ (MSM™) phone chips during the quarter. In the second fiscal quarter of 2003, total earnings per share were $0.13, including a $0.26 loss per share attributed to the QSI segment.

On January 21, 2004, we had estimated second fiscal quarter revenues excluding the QSI segment to increase year-over-year by approximately 3-11 percent and total revenues to increase year-over-year approximately 1-8 percent. We had anticipated second fiscal quarter earnings per share excluding the QSI segment to be $0.38-$0.41. We had anticipated total earnings per share to be $0.34-$0.37, including an estimated $0.04 loss per share attributed to the QSI segment. These estimates were based on the shipment of approximately 29-31 million MSM phone chips during the quarter.

Due to their nature, certain income and expense items such as investment gains and losses, income related to the use of our FCC Auction Discount Voucher and asset impairments cannot be accurately forecast. Accordingly, the Company excludes such items from its business outlook, and actual results may vary materially from the business outlook if the Company incurs any such income or expense items.

Anticipated revenues and earnings for the Qualcomm CDMA Technologies (QCT) segment for the March quarter have improved due to the expectation of shipping approximately one million more MSM phone chips, a significant improvement in expected shipments of RF phone chips and greater sales of CSMTM infrastructure chips.

Anticipated revenues and earnings for the Qualcomm Technology Licensing (QTL) segment for the March quarter have improved due to greater CDMA subscriber unit shipments and greater infrastructure sales reported by our licensees for the first fiscal quarter of 2004. Royalty reports from our licensees, received in the second fiscal quarter for CDMA products sold in the first fiscal quarter ended December 28, 2003, indicate sales of approximately 37 million new CDMA subscriber units compared to our prior estimate of approximately 32 million units. These royalty reports also indicate that the average selling price of new CDMA units decreased by approximately 2 percent compared to the prior quarter. Total new CDMA subscriber units shipped in calendar 2003 are now estimated to be 117 million units. We expect approximately 35-37 million new CDMA subscriber units to be shipped in the second fiscal quarter ended March 28, 2004.

"Record demand for our chipsets and strong growth in virtually all CDMA markets are driving solid financial results for Qualcomm in fiscal 2004," said Dr. Irwin Mark Jacobs, chairman and CEO of Qualcomm. "To put this growth into perspective, in fiscal year 2002 we shipped 65 million MSM phone chips. Comparatively, in the first two fiscal quarters of 2004 we expect to ship approximately 63-64 million MSM chips. While our handset customers are accelerating their migration to the highly integrated MSM6xxx series chips, demand for MSM5xxx series phone chips remains very strong. We are working closely with our digital and RF fab partners to meet this demand in the June quarter. Despite supply constraints in some MSM5xxx and related RF parts, we expect to ship 26-30 million MSM chips in the June quarter compared to approximately 23 million chips shipped in the year-ago quarter.

"Strong quarterly results from Verizon and Sprint PCS in the United States demonstrate that CDMA is increasingly the most popular choice for consumers and businesses, with many able to more readily change carriers due to the implementation of local number portability. In Japan, KDDI continues to lead by offering compelling video clip services for a $38 monthly fixed rate with CDMA2000® 1xEV-DO products. Recent subscriber reports indicate that KDDI has experienced four times the net additions to their CDMA subscriber base as compared to other Japanese carriers. In South Korea, SKT and KTF combined, exceeded the five million mark for 1xEV-DO subscribers. 1xEV-DO growth continues to be strong worldwide, and we look forward to Verizon's nationwide deployment of 1xEV-DO over the coming months. China Unicom finished 2003 with approximately 19 million CDMA subscribers and added approximately 1.1 million new subscribers in January 2004. One million of the subscriber additions were on China Unicom's postpaid service. In India, Reliance recently launched its much anticipated prepaid program which yielded approximately 100,000 new subscribers each day in the first three days the service was available.

"WCDMA deployments are accelerating, and DoCoMo reached its goal of two million FOMA subscribers two months ahead of schedule. With more operators preparing for launch and with better handsets and data modules, many based on the MSM6200TM and soon the MSM6250TM chip, WCDMA is now well positioned for rapid growth."

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. Headquartered in San Diego, California, Qualcomm is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

Note Regarding Use of Non-GAAP Financial Measures
The Company presents financial information excluding the Qualcomm Strategic Initiatives (QSI) segment to facilitate evaluation by management, investors and analysts of its ongoing core operating businesses, including Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Wireless & Internet (QWI). QSI results relate to strategic investments for which the Company has exit strategies of varying durations. Management believes that the information excluding QSI presents a more representative measure of the operating and cash flow performance of the Company because it excludes the effect of fluctuations in the value of investments that are unrelated to the Company's operational performance. The financial information excluding QSI should be considered in addition, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Reconciliations between total Qualcomm results and results excluding QSI are presented on the Company's Web site at www.qualcomm.com.

Note Regarding Forward-Looking Statements
In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of development, deployment and commercial acceptance of CDMA based networks and CDMA based technology, including CDMA2000® 1X, CDMA2000 1xEV-DO and WCDMA, both domestically and internationally; our dependence on major customers and licensees, fluctuations in the demand for CDMA based products, services or applications; foreign currency fluctuations; strategic loans, investments and transactions the Company has or may pursue; dependence on third party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; developments in current and future litigation as well as other risks detailed from time-to-time in the Company's SEC reports.

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