QUALCOMM CDMA Technologies and Nortel Networks Conduct Industry's First Mobile Internet Protocol Call.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Aug. 22, 2001

Technology Demonstrates Successful Hand-Off Capability for Seamless

Packet Data Call Transfer Across 3G Packet Networks

QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and Nortel Networks (NYSE/TSE: NT), a global leader in networking and communications solutions for service providers and corporations, today announced the industry's first successful end-to-end live third-generation (3G) CDMA2000 1X Mobile Internet Protocol (IP) call. Mobile IP is a solution that allows data to be transferred across 3G packet networks. Using the QUALCOMM CDMA Technologies (QCT) MSM5105(TM) Mobile Station Modem (MSM(TM)) solution and Nortel Networks' wireless Internet infrastructure equipment, this call demonstrates the expanded data capabilities of 3G wireless networks, and the ability for wireless data users to roam uninterrupted across 3G wireless packet networks.

Mobile IP provides a method to allow IP traffic to find nodes whose point of attachment to the Internet changes. The IS-835 standard codifies the use of Mobile IP in a CDMA2000 1X Packet Data Network. Today's CDMA packet data services provide only islands of mobility. Mobile IP will solve this problem by providing "always on" access to a carrier's entire network, enabling wireless users to access Web and data services without interruption while moving between buildings and networks, using a variety of wireless handheld devices, laptops and appliances. Mobile IP is a key requirement for 3G networks where true, uninterrupted mobile connectivity to the Internet is a priority for carriers promoting data services and features to subscribers. Mobile IP will enable users of 3G CDMA packet data services to have access to the wireless Internet.

Mobile IP capability will allow operators to "push" personalized content to individual users across their networks and offer unique data services that can create new revenue opportunities. Consumers will also benefit since they will not need to maintain costly air links to keep their network connection. The network activates the air link only when it is needed to move data.

"This effort between QCT and Nortel Networks in delivering an end-to-end Mobile IP system solution to our respective customers, demonstrates the commitment and leadership by both companies in driving the deployment of 3G wireless systems and services," said Johan Lodenius, senior vice president of marketing and product management for QUALCOMM CDMA Technologies. "Mobile IP and its usage for wireless data will quickly enable operators to provide seamless, uninterrupted packet data call service on entire 3G networks."

"This first Mobile IP capability demonstrated with QCT is an important step in delivering powerful new mobile applications and m-commerce services that can drive new revenue opportunities for wireless operators," said Peter MacKinnon, senior vice president, Wireless Internet Solutions, Nortel Networks. "This milestone demonstrates our continued momentum and leadership in CDMA, and in making the wireless Internet available anytime, anywhere."

The call was performed in Nortel Networks' Wireless Internet Interoperability Lab in Richardson, Texas, using the QCT MSM5105 platform and Nortel Networks' 3G infrastructure equipment, including the Nortel Networks Shasta 5000 Broadband Service Node and Metro Cell CDMA2000 1X radio access products. This demonstration by QCT and Nortel Networks successfully completed Packet Data Serving Node (PDSN) traffic transmission between "home" and "foreign" networking agents, thereby illustrating interoperability that will be required by 3G handsets as delineated by the IS-835 standard.

The Mobile IP capability will be supported by QCT's MSM5105, MSM5100(TM) and subsequent CDMA2000 1X chipsets and system software, as well as on Nortel Networks 3G infrastructure equipment. The MSM5105 chipset is now in production shipping, and the MSM5100 chipset samples are currently being shipped. The software to support Mobile IP will be available in the third quarter of calendar 2001.

Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. The Company is at the forefront of transforming how the world communicates, exchanges information and profits from the high-performance Internet through capabilities spanning the optical Internet, wireless Internet, intelligent Internet and IP technologies and services. Nortel Networks does business in more than 150 countries and can be found on the Web at www.nortelnetworks.com.

QCT, 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, 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, MSM5105, MSM5100, OmniExpress and BREW are trademarks of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. Nortel Networks and Shasta are trademarks of Nortel Networks. All other trademarks are the property of their respective owners.