QUALCOMM CDMA Technologies Exceeds 100 Million Mark in MSM Chipsets Shipped - Company Business and Marketing

Cambridge Telcom Report, May 29, 2000

QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, Tuesday announced it has passed a major milestone with the shipment of more than 100 million Mobile Station Modem (MSM) chipsets and system software to customers worldwide. The production shipment milestone for these highly integrated CDMA handset semiconductors was reached as the CDMA market continues to grow with a subscriber base that has more than doubled within the last 12 months, according to the CDMA Development Group (CDG). As the industry evolves to third-generation (3G) CDMA services, QUALCOMM continues to make innovative advances in CDMA development. With more than 100 million QUALCOMM-designed MSM chipsets shipped to handset manufacturers worldwide -- a rapid ramp-up from the less-than-one million MSM chipsets shipped four years ago -- QUALCOMM remains the world's largest provider of chipsets and system software for CDMA wireless systems.

"The dramatic increase in QUALCOMM's chipset production and shipping reflects not only the success of QUALCOMM's CDMA products, but also the success of the fabless semiconductor business model," said Jodi Shelton, executive director of the Fabless Semiconductor Association. "As the world's largest fabless semiconductor company, QUALCOMM has utilized the flexibility and responsiveness of the fabless model to supply the rapidly growing digital wireless industry's demands with tremendous acuity."

"QUALCOMM's long-term partnerships with the leading CDMA handset manufacturers in the world, combined with a consistent on-time delivery record in supplying innovative CDMA products and solutions, has helped drive the rapid growth of CDMA," said Don Schrock, president of QUALCOMM CDMA Technologies. "Our next generation of Internet-ready, multimedia chipsets and system software will continue that tradition of leadership by enabling manufacturers worldwide to transition smoothly to 3G systems and develop the most advanced CDMA handsets available, reducing time-to-market and cost while offering an amazing array of new products and services."

With the increasing demand for digital wireless communications and new data services, QUALCOMM's MSM chipsets are now being developed on three parallel fronts:

-- The core IS-95A/B MSM3xxx product line addressing higher levels of system integration, lower system costs and increased standby times

-- The new applications iMSMxxxx product line, focusing on the emergence of smart phones and data-centric terminals based on IS-95A/B, 3G 1xMC (1x) and High Data Rate (HDR) technologies

-- The new standards MSM5xxx product line, bringing to market 3G chipsets that enable the commercialization of next-generation devices with improved voice and data capacities To meet the growing demand for next-generation voice and data services -- as well as terminals and networks -- with a seamless and cost-effective migration path, QUALCOMM has worked with equipment manufacturers and network operators worldwide to introduce a variety of CDMA solutions targeted for specific market needs. Recently introduced QUALCOMM products and technologies that address these needs include:

-- Wireless Internet Launchpad suite of software applications and technologies, enabling a broad range of new terminal products and Internet services, including digital audio and video, connectivity, position location, advanced user interface and removable storage functionality -- MSM5000 chipset and system software, which will allow manufacturers to roll out the world's first 1x handsets that, in addition to offering rich application and feature sets in very small form-factors, will also provide significantly extended standby times as well as much higher voice capacity and data rates

-- CSM5000 solution, providing very high integration, enabling 32 users per CSM5000 chip for 3G base stations, and supporting the IS-2000 1x standard and providing up to twice the overall capacity of voice users over IS-95A and IS-95B systems while offering backward compatibility with those previous standards

-- SnapTrack and gpsOne, breakthrough position location solutions, offering robust position location information for wireless handsets under challenging conditions, whether in concrete-and-steel high-rises, convention centers, shopping malls or urban canyons

-- MSM3300 chipset and system software, the world's first single-chip multimedia modem, providing the highest level of integration of multimedia features available for mobile phones

-- RFR3300 device, the first in the CDMA industry to integrate GPS capability with a CDMA front-end receiver. Together with the MSM3300 chipset and IFR3300 baseband receiver, the RFR3300 device offers the most cost-effective and high-performance solution for dual-band (PCS CDMA and AMPS) or tri-mode (cellular CDMA, AMPS, and PCS CDMA) phones with QUALCOMM's gpsOne position location technology

-- IFR3300 chip, an IF-to-baseband receiver that, along with the RFR3300 device and MSM3300 chipset and system software, enables complete integration of a GPS-band radio without the need for other external IF chips