QUALCOMM CDMA Technologies Rolls Out Entry-Level 3G CDMA2000 Solution Addressing Voice and SMS Handset Market.

Business Editors & High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Sept. 20, 2001

MSM5010 Chipset and System Software Designed for

Low-Cost Handsets with Optimized Voice and SMS Capabilities

QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the rollout of the QUALCOMM CDMA Technologies (QCT) MSM5010(TM) Mobile Station Modem (MSM(TM)) chipset and system software solution for third-generation (3G) CDMA2000 1X handsets. The MSM5010 solution addresses the market requirements of operators in Latin America, Australia, New Zealand, Asia and North America who have a large pre-paid subscriber market or have identified new CDMA market segments that could be addressed with voice and Short Messaging Services (SMS) CDMA handsets. The MSM5010 chipset offers a low-cost, voice and SMS 3G CDMA2000 1X solution. Additionally, the chipset provides the added benefit of improved network voice capacity, providing up to two times the voice capacity over second-generation (2G) IS-95A/B systems, and even greater capacity benefits over other 2G technologies. Based on the proven 3G CDMA2000 1X MSM5105(TM) architecture, the MSM5010 solution has been optimized to support voice-only applications with two-way SMS.

"Rolling out the complete MSM5010 solution in record time demonstrates how QCT's design methodology and business model can react rapidly to meet market needs expressed by existing and new CDMA carriers worldwide," said Don Schrock, president of QUALCOMM CDMA Technologies. "Leveraging existing MSM5105 voice and data-capable terminal designs, handset manufacturers and operators will be able to address new market segments with QCT's MSM5010 solution while reducing costs for entry-level 3G CDMA2000 1X voice-only handsets."

The MSM5010 chipset is pin compatible with the MSM5105 solution and will provide handset manufacturers and network operators with fast time-to-market advantages and greater segmentation. The MSM5010 solution complements the mid- and high-end 3G CDMA2000 1X solutions provided by the MSM5105 and MSM5100(TM) chipsets. Manufacturers will be able to offer this entry-level solution to system operators, who will be able to use MSM5010-based handsets in the same network as MSM5105 and MSM5100-based devices, creating differentiated voice and data services for subscribers, and enabling more efficient CDMA2000 1X network management and optimization.

The MSM5010 solution will support three different configurations: 800 MHz cellular CDMA; 800 MHz cellular CDMA/AMPS; and 1900 MHz PCS CDMA configurations to meet the different market needs globally.

Engineering samples, initial system software and production capability for the MSM5010 solution began in August 2001, and the associated DMSS5010(TM) software rollouts for the different radio configurations will be completed by the end of October 2001.

QCT (www.cdmatech.com), a division of QUALCOMM Incorporated, is a developer and supplier of CDMA chipsets, hardware and software solutions, and tools, with 163 million cumulative shipments of MSM chips worldwide. QCT offers wireless position location technology by SnapTrack(TM), a wholly owned subsidiary of QUALCOMM. QCT supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers including: Acer Peripherals, Inc.; ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and Toshiba Corporation, among others.

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(TM) (BREW(TM)) applications platform; Eudora(R) e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar(TM) system and wireless fleet management systems, OmniTRACS(R) and OmniExpress(TM). 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 the S&P 500 Index and is a 2001 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) 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 24, 2000 and most recent Form 10-Q.

QUALCOMM, OmniTRACS and Eudora are registered trademarks of QUALCOMM Incorporated. MSM, MSM5010, MSM5105, MSM5100, DMSS5010, SnapTrack, OmniExpress and BREW 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.