QUALCOMM Reports Second Fiscal Quarter Earnings / $.82

Operating EPS, Excluding Non-Recurring Charges SAN DIEGO (ots-PRNewswire) - QUALCOMM Incorporated (Nasdaq: QCOM) today reported revenues of $932 million and a net loss of $43 million, or $.59 per share (diluted), for the second quarter of fiscal 1999 (see Financial Data comparisons). Excluding non- recurring charges of $166 million associated primarily with the sale of the Company's terrestrial Code Division Multiple Access (CDMA) wireless infrastructure business and the restructuring of its workforce, the Company reported record net income in the second quarter of $65 million, or $.82 earnings per share (diluted). This represents an increase in net income excluding non-recurring items of 250 percent over second quarter of fiscal 1998. Revenues in the second quarter of fiscal 1999 increased 23 percent over the second quarter of fiscal 1998. The growth was primarily due to improved communications systems revenues consisting of strong sales of CDMA phones, Application Specific Integrated Circuits (ASICs) and OmniTRACS, as well as increased royalties. "The events of this quarter proved to be pivotal in our Company's 14-year history. We entered into a series of agreements with Ericsson which will result in a global resolution of our mutual patent disputes and the sale of our infrastructure business," said Dr. Irwin M. Jacobs, chairman and CEO of QUALCOMM Incorporated. "We saw robust demand for CDMA phones and chip sets and we announced innovative new products, including the Thin Phone(TM) and our sixth generation MSM(TM) phone chip. Our royalty revenues grew significantly as a result of increased CDMA product shipments by our licensees, which we believe is a clear indicator of the growth of CDMA technology around the globe. Our focus is to continue to support the growth of CDMA, to strengthen and grow our core businesses and to improve operational efficiency and profitability." On March 25, 1999, QUALCOMM announced a series of definitive agreements with Ericsson. These agreements included (a) the purchase by Ericsson of certain assets and the assumption of certain liabilities related to the Company's terrestrial CDMA wireless infrastructure business, (b) joint support of a single world CDMA standard with three optional modes for the next generation of wireless communications, (c) the signing of cross- licensing agreements, and (d) the settlement of legal disputes between QUALCOMM and Ericsson. Non-recurring pre-tax charges of $166 million were reported primarily in connection with the sale of the terrestrial CDMA wireless infrastructure business, write-down of certain infrastructure business related assets not being acquired by Ericsson, restructuring of the workforce and loss on cancellation of a portion of Leap Wireless warrants. In the third quarter of fiscal 1999, the Company expects additional non-recurring expenses of approximately $100 million relating to the sale of the infrastructure business. This includes compensation expenses related to employees being transferred to Ericsson. Stock Split On April 14, 1999, QUALCOMM's Board of Directors declared a two-for-one stock split of the Company's Common Stock. The non- taxable stock dividend will be distributed on May 10, 1999 to stockholders of record on April 21, 1999. QUALCOMM Incorporated (Nasdaq: QCOM) 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 major business areas include CDMA phones; Application Specific Integrated Circuits (ASICs); technology licensing; and satellite-based systems including OmniTRACS(R) and portions of the Globalstar(TM) system. Headquartered in San Diego, Calif., QUALCOMM is a FORTUNE 500(R) company with fiscal 1998 revenues in excess of U.S. $3 billion. For more information, please visit the Company's web site at http://www.qualcomm.com. Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to the risk that the closing conditions to agreements signed with Ericsson will not be satisfied, the risk that the rate of growth in the CDMA subscriber population will decrease, risks associated with the scale-up and operations of CDMA systems, risks associated with the ability to improve operational efficiency and profitability, risks associated with developments in current or future litigation, risks associated with timing and receipt of license fees and royalties, risks associated with vendor financing and risks associated with changes 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. QUALCOMM, OmniTRACS and Eudora are registered trademarks of QUALCOMM Incorporated. All other trademarks are the property of their respective manufacturers. MSM and Thin Phone are trademarks of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. Financial Data -- Second Quarter Fiscal 1999

1999 Non-Recurring 1999

Dollars in thousands except 2nd Qtr Charges 2nd Qtr

per share data As Reported As Adjusted

Revenue $932,395 -- $932,395

Gross Profit $308,620 $10,123 $318,743

Gross Profit % 33% -- 34%

R&D $102,713 $3,063 $99,650

Selling & Marketing $53,628 $459 $53,169

G&A $51,266 $665 $50,601

Other Operating Expenses $95,824 $95,824 $0

Total Operating Expenses $927,206 $100,011 $827,195

Operating Income $5,189 $110,134 $115,323

Operating Income % 1% -- 12%

Other Non-Operating Expense $70,757 $55,804 $14,953

Income (Loss) Before Taxes ($65,568) ($165,938) $100,370

Net Income (Loss) ($42,620) ($107,860) $65,240

EPS (Diluted) ($0.59) ($1.49) $0.82

Financial Data - Second Quarter Fiscal 1999 vs. Second Quarter Fiscal 1998 Excluding Non-Recurring Charges/Gains

1999 1998 Change 1999 1998 Change

Dollars in 2nd Qtr 2nd Qtr % 1st Half 1st Half %

thousands

except Per

share data

Revenue $932,395 $760,553 23% $1,873,618 $1,546,407 21%

Gross Profit $318,743 $226,221 41% $617,576 $458,460 35%

Gross Profit % 34% 30% -- 33% 30% --

Operating

Income $115,323 $51,301 125% $193,271 $116,172 66%

Operating

Income % 12% 7% -- 10% 8% --

Income Before

Taxes $100,370 $26,222 283% $166,291 $91,805 81%

Net Income $65,240 $18,618 250% $110,089 $69,181 59%

EPS (Diluted) $0.82 $0.25 228% $1.44 $0.94 60% ots Original Text Service: QUALCOMM Incorporated Internet: http://www.newsaktuell.de Contact: Julie Cunningham, Vice President, Investor Relations of QUALCOMM Incorporated, 619-658- 4224, or fax, 619-651-9303, juliec@qualcomm.com Web site: http://www.qualcomm.com

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