QUALCOMM COMPLETES SPIN-OFF OF LEAP WIRELESS INTERNATIONAL SAN DIEGO, Sept. 23 /PRNewswire-AsiaNet/ -- QUALCOMM Incorporated(Nasdaq: QCOM) today announced that it has completed the spin-off anddistribution to its stockholders of shares of Leap Wireless International,Inc. (Nasdaq: LWIN). As part of the distribution, effective immediatelyafter the close of market trading on September 23, 1998, record holders ofQUALCOMM common stock on September 11, 1998 will receive a dividend of one(1) share of common stock of Leap Wireless for every four (4) shares ofcommon stock of QUALCOMM held by them as of that date. Regular public trading of Leap Wireless shares under the ticker symbol"LWIN" will begin as of September 24, 1998, at which time QUALCOMM commonstock will trade ex-dividend. The strategy of Leap Wireless will be toinvest in wireless consortia with partners that offer financial resources,spectrum or familiarity with the local market to facilitate deployment. Leap Wireless currently owns, manages, supports and operates jointventure and equity interests in Pegaso Telecomunicaciones, S.A. de C.V.(Mexico), Metrosyvaz Limited (Russia) and Orrengrove Investments Limited(Russia), ChileSat Telefonia Personal, S.A. (Chile), ChaseTelecommunications, Inc. (United States), OzPhone Pty. Ltd. (Australia),and certain other development-stage businesses. "In emerging markets, the need for rapidly expanding telecommunicationsinfrastructure is not a luxury item, but a fundamental need, and wirelessis the fastest and most cost-effective way to meet the demand," said HarveyP. White, chairman and CEO of Leap Wireless. "We have chosen to focus on CDMA because we believe that it is the besttechnology to provide the capacity and quality to meet customer demand. Inaddition, by using CDMA, we will not have to sacrifice quality formobility. We will be able to provide high quality voice and data servicesthat just happen to be mobile." Mr. White was a co-founder of QUALCOMM who served as its president untiljust prior to the distribution. Headquartered in San Diego, QUALCOMM develops, manufactures, markets,licenses and operates advanced communications systems and products based onits proprietary digital wireless technologies. The Company's primaryproduct areas are the OmniTRACS(R) system (a geostationery satellite-based,mobile communications system providing two-way data and position reportingservices), CDMA wireless communications systems and products and, inconjunction with others, the development of the Globalstar(TM) low-earthorbit (LEO) satellite communications system. Other Company productsinclude Eudora(R) electronic mail software, ASIC products, andcommunications equipment and systems for government and commercialcustomers worldwide. For more information on QUALCOMM products and technologies, please visitthe Company's web site at . Headquartered in San Diego, Leap Wireless is a wireless communicationscarrier that deploys CDMA networks in domestic and international marketswith strong growth potential. In conjunction with its strategic partners,Leap Wireless is building or anticipates building a combination of fixedand mobile wireless solutions in Mexico, Chile, Australia, Russia and theUnited States. The world is going wireless, and Leap believes CDMA is thetechnology of choice to increase the teledensity that is critical toeconomic growth. For each of its ventures, Leap Wireless expects to beactively involved in the management of the networks, combining itsexperience in international markets with its wireless technical expertisein CDMA. Leap Wireless is dedicated to bringing the economic benefits of areliable, cost-effective and high-quality telecommunications infrastructureto emerging markets. For more information about Leap Wireless, please visit the company's website beginning September 24, 1998 at . Except for the historical information contained herein, this newsrelease contains forward-looking statements that are subject to risks anduncertainties, including risks associated with the lack of Leap Wirelessoperating history, uncertainty of future profitability of Leap Wireless,international risks and change in economic conditions of the variousmarkets QUALCOMM serves and Leap Wireless may serve. These and other risksare detailed from time to time in QUALCOMM's SEC reports, including thereport on Form 10-K for the year ended September 28, 1997 and most recentForm 1O-Q, as well as in the Information Statement on Form 10, as amended,filed by Leap Wireless in connection with the distribution. QUALCOMM, OmniTRACS and Eudora Pro are registered trademarks of QUALCOMMIncorporated. Globalstar is a trademark of Loral QUALCOMM SatelliteServices. All other company and product names are trademarks of theirrespective holders. SOURCE: QUALCOMM Incorporated CONTACT: Julie Cunningham, Investor Relations of QUALCOMM, 619-658-4224,fax: 619-651-9303, [email protected]; or Rochelle Bold, Investor Relations of Leap WirelessInternational, 619-845-6016, fax: 619-845-6060 Web site: http://www.leapwireless.com Web site: http://www.qualcomm.com