QUALCOMM Enters into CDMA Subscriber Unit License Agreement with ZTE Corporation; ZTE Becomes First Company in People's Republic of China to Enter into CDMA Subscriber License

Business Wire, July 2, 2001

Business Editors & High-Tech Writers

SAN DIEGO and BEIJING, China--(BUSINESS WIRE)--July 2, 2001

QUALCOMM Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has signed a commercial subscriber unit license agreement with ZTE Corporation, a leading manufacturer of telecommunications equipment in China. Under the terms of the worldwide royalty-bearing license agreement, QUALCOMM has granted ZTE a license to develop, manufacture and sell cdmaOne(TM) and third-generation (3G) CDMA2000 1x/1xEV subscriber equipment. ZTE becomes the first company in the People's Republic of China to enter into a commercial subscriber license with QUALCOMM.

"ZTE has shown consistent leadership in developing products for the CDMA market as it was the first manufacturer in the People's Republic of China to enter into a subscriber R&D license with QUALCOMM for CDMA," said Steve Altman, president of QUALCOMM Technology Alliances. "We are extremely pleased to be working with ZTE and look forward to working even more closely with them as they continue to be a strong supporter in the efforts to deploy commercial CDMA products in China."

ZTE is also the first manufacturer in China to commit to support QUALCOMM's Binary Runtime Environment for Wireless(TM) (BREW(TM)) applications platform, which allows rapid development of a wide variety of applications designed specifically for wireless devices in which users will be able to download over carrier networks onto any BREW-enabled phone.

The signing of the commercial subscriber unit license between ZTE and QUALCOMM brings to fruition a process begun early last year when QUALCOMM and China United Telecommunications Corporation, the second largest wireless service provider in China entered into a Framework Agreement for the licensing of QUALCOMM's CDMA intellectual property to Chinese manufacturers. China United Telecommunications Corporation later formed a subsidiary, Unicom Horizon, to operate its CDMA networks. The successful completion of the license negotiations between QUALCOMM and ZTE reflects a continuation of efforts that will help accelerate the rollout and adoption of CDMA wireless services in China and worldwide.

ZTE and many other Chinese telecommunication companies will benefit from the new opening of the CDMA Development Center in Beijing. Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMM, is in China to open the Center, which will provide training, support and equipment testing services to manufacturers and mobile carriers in China, as well as to serve as a base through which to support research and development of 3G wireless standards based on CDMA. The Center will also support the transfer of hardware and software technologies for product development and manufacturing, as well as implementation methods to licensed manufacturers, carriers and government bodies in China.

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 integrated circuits and system software; technology licensing; the BREW 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. OmniExpress and BREW are trademarks of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. cdmaOne is a trademark of the CDMA Development Group. All other trademarks are the property of their respective owners.