Press Release

Qualcomm and UTStarcom Sign CDMA Subscriber Unit

Mar 22, 2004SAN DIEGO

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

Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP access networking and services, today announced the companies have signed a commercial CDMA subscriber unit and infrastructure license agreement. Under the terms of the worldwide royalty-bearing agreement, Qualcomm has granted UTStarcom a patent license to develop, manufacture and sell subscriber and infrastructure equipment for use in CDMA2000®, WCDMA (UMTS) and TD-SCDMA systems. The royalties payable by UTStarcom are at Qualcomm’s standard rates and are the same irrespective of CDMA standard for which the subscriber and infrastructure equipment are sold.

"Qualcomm is pleased to enter into this agreement with UTStarcom, an industry leader in providing cost-efficient wireless communication solutions globally. Qualcomm’s CDMA technology and strategy enables UTStarcom to extend its existing wireless solutions to carriers throughout the world," said Marvin Blecker, senior vice president and general manager of technology licensing for Qualcomm. "Qualcomm continues to build on its leadership and expertise in developing and delivering end-to-end 3G solutions for all markets that enable broad product segmentation, product differentiation, and enhanced wireless applications and services."

"UTStarcom firmly believes in the future of 3G CDMA and we are pleased to work with Qualcomm to help grow the worldwide 3G CDMA market," said Taher Behbehani, vice president of business development and strategy at UTStarcom. "This license agreement broadens UTStarcom’s global wireless position, complements our existing 3G products and technologies, and opens up an attractive suite of applications that are synergistic with our Personal Access System (PAS) services in high-growth, developing worldwide markets."

UTStarcom is a global leader in IP access networking solutions and international service and support. The company sells its wireline, wireless, optical and switching solutions to operators in both fast growth and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in New Jersey, China and India. For more information about UTStarcom, visit the company’s Web site at www.utstar.com.

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, Calif., 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.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Companies’ 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 companies serve, as well as the other risks detailed from time to time in the companies’ SEC reports, including the report on Form 10-K for the year ended September 28, 2003, and most recent Form 10-Q.

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