Asia PR News

SAN DIEGO, Calif., Oct. 28 /PRNewswire-AsiaNet/ –

QUALCOMM Believes Claims Are Meritless

QUALCOMM Incorporated (Nasdaq: QCOM) today stated that, although it has not
seen the actual complaint, the reported allegations made to the European
Commission are factually inaccurate and legally meritless. The accusation that
QUALCOMM has not lived up to its commitments to standard-setting organizations
to license its essential patents on fair and reasonable terms is belied by the
more than 130 licenses that QUALCOMM has granted to a broad range of companies,
among them five of the six reported claimants (for a complete list of
QUALCOMM’s licensees, visit www.qualcomm.com/technology/licensing). These
licenses, including agreements with the world’s largest and most sophisticated
manufacturers of wireless telecommunications equipment, make QUALCOMM’s patents
the most extensively licensed portfolio in the cellular industry. The
widespread market acceptance of QUALCOMM’s licensing program conclusively
demonstrates that QUALCOMM’s licensing practices are fair, reasonable and
pro-competitive.

QUALCOMM disagrees with any suggestion that it has contributed less
significant technology to the WCDMA 3G standard. Indeed, it is widely
acknowledged that efforts to design around QUALCOMM’s fundamental innovations
in formulating the UMTS/WCDMA standard were unsuccessful. It is especially
ironic that the complaints are being lodged by suppliers who voluntarily
entered into license agreements with QUALCOMM, acknowledging its leading WCDMA
patent portfolio. This action appears to be nothing more than an attempt by
these licensees to renegotiate their license agreements by seeking
governmental intervention.

QUALCOMM has granted and announced far more licenses than any other
company claiming to hold patents essential to the CDMA2000, WCDMA or TD-SCDMA
standards. QUALCOMM’s extensive licensing program has fostered the widespread
adoption of leading-edge technologies and promoted vibrant competition
throughout the wireless industry, encouraging innovation and technological
advancement. Contrary to the reported allegation that QUALCOMM is seeking to
exclude chip competitors, QUALCOMM has licensed major chip manufacturers,
including Texas Instruments, NEC, Infineon, Philips, Agere, Motorola, VIA and
Fujitsu.

"We are proud that our licensing program has enabled many new entrants to
design innovative wireless devices and compete in the 3G marketplace," said
Dr. Paul E. Jacobs, chief executive officer of QUALCOMM. "It is not
surprising that the reported allegations come largely from entrenched 2G
suppliers who have the most to lose from the enhanced and expanded competition
in 3G created by QUALCOMM’s widespread licensing and supply of enabling 3G
technology, chipsets and software. The many new handset market entrants,
working in cooperation with QUALCOMM, threaten the market shares of these
entrenched manufacturers and their component suppliers. We welcome the
opportunity to demonstrate these facts in an open and public process."

"It is ironic that these companies claim that QUALCOMM’s behavior has
harmful effects for the mobile telecommunications sector when the facts are
completely contrary. In fact, the average selling price of WCDMA handsets is
declining, and WCDMA subscriber uptake is increasing - each at a faster rate
than GSM experienced during its early commercial years," said Steve Altman,
president of QUALCOMM.

Unlike GSM, where there are a small number of entrenched suppliers, the
WCDMA market enjoys healthy competition among many handset suppliers,
including companies from Korea, Japan, China, the United States and Europe as
a result of QUALCOMM’s proactive licensing of its substantial R&D investments
and the widespread availability of chipsets and software from QUALCOMM and its
licensees.

The allegations regarding royalty discounting, while misleading, are
simply complaints about legitimate and lawful price competition, which is good
for manufacturers, operators and especially consumers. QUALCOMM has never
made the purchase of its chips a condition of granting a license.

QUALCOMM will vigorously defend against any claim of unlawful conduct in
its licensing or chipset sales practices.

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and
delivering innovative digital wireless communications products and services
based on CDMA and other advanced technologies. Headquartered in San Diego,
Calif., QUALCOMM is included in the S&P 500 Index and is a 2005 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 26, 2004, and most recent
Form 10-Q.

QUALCOMM is a registered trademark of QUALCOMM Incorporated. CDMA2000 is a
registered trademark of the Telecommunications Industry Association (TIA USA).
All other trademarks are the property of their respective owners.

QUALCOMM Contacts:

Christine Trimble, Corporate Communications
Phone: 1-858-651-3628
Email: corpcomm@qualcomm.com

or

Bill Davidson, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com

SOURCE: QUALCOMM Incorporated

CONTACT: Christine Trimble,
Corporate Communications,
+1-858-651-3628,
corpcomm@qualcomm.com, or

Bill Davidson,
Investor Relations,
+1-858-658-4813,
ir@qualcomm.com,

both of QUALCOMM Incorporated

Website: http://www.qualcomm.com

(QCOM)