QUALCOMM AND ASAHI KASEI MICROSYSTEMS CO., LTD. ANNOUNCE EXTENSION OF LETTER OF AGREEMENT FOR CDMAONE CHIPSETS WINNING COMBINATION OF CDMA AND ANALOG TECHNOLOGIES CONTINUES TOKYO, July 8 /PRNewswireAsiaNet/ - QUALCOMM Incorporated (Nasdaq: QCOM) today announced it has extended its Letter of Intent (LOI) with Asahi KaseiMicrosystems (AKM) Co., Ltd. for two years to continue providing optimizedchipsets for the Code Division Multiple Access (CDMA) market in Japan. The new agreement now allows for a complementary chipset incorporatingQUALCOMM's newly developed MSM3000, IFT3000 and IFR3000 chips and an AKM-developed Audio Interface/Voice Codec plus Phase-Locked Loop (PLL). Thechipset will provide a complete Intermediate Frequency (IF) transmit andreceive solution for next generation CDMA-only handsets. "Our working partnership with AKM has been very successful for not onlyour companies, but also our customers who are benefiting from a world-classtri-mode CDMA, J-TACS, N-TACS chipset in present generation handsets. Bycombining our core strengths in CDMA technology and system-level chip designwith advanced applications support capabilities, we are able to get optimizedsolutions quickly to market," said Donald Schrock, president of QUALCOMM'sASIC Products Division. The new AKM PLL/Codec device, known as AK2486, in combination withMSM3000, IFT/IFR3000 and an RF front-end enable design of very small handsetsoptimized for Japan CDMA frequency plans. In addition, the AK2486 and theIFT/IFR3000 devices use a specialized serial bus interface (SBI) control fromthe MSM3000 which provides enhanced capabilities for managing currentconsumption and extending handset stand-by time performance. "We are pleased to extend our relationship with the cutting-edge producerof CDMA chipsets at a time when CDMA has established itself as a leadingtechnology in Japan. The past two years have generated innovative designs andsuperior performance and results for our customers," said Yoshifumi Oshima,general manager of AKM's Communication Products. "AKM's low-power mixedsignal expertise and QUALCOMM's CDMA technology have proven to be a winningcombination." The announcement comes on the heels of recent announcements by QUALCOMM ofproduction quantity shipping of its MSM2310 chipset and sample shipping of itsfifth-generation MSM3000 chipset. In conjunction with its announced licensingagreement for ARM software development tools, QUALCOMM's chipsets remain themost advanced and highest performing on the market. "As the second largest cellular market in the world, Japan remains astrategic market for QUALCOMM, a market where consumers, service providers andmanufacturers have quickly embraced CDMA technology," said Johan Lodenius,vice president of marketing for QUALCOMM's ASIC Products Division. "Thisextension of our partnership allows us to retain our competitive advantage inthis highly competitive region." Asahi Kasei Microsystems Co., Ltd. (AKM), a wholly-owned semiconductorunit of Asahi Chemical Industry Co., Ltd., entered the LSI business in June1983. AKM's product line includes full custom LSIs and ASSPs for mobilecommunications, digital transmission, PC audio and digital audio/videoapplications and are based on AKM's unique CMOS mixed analog/digitaltechnology. Headquartered in San Diego, California, QUALCOMM develops, manufactures,markets, licenses, and operates advanced communications systems and productsbased on its proprietary digital wireless technologies. The Company's primaryproduct areas are the OmniTRACS(R) system (a geostationary 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 low-earth-orbit(LEO) satellite communications system. Other company products include theEudora Pro(R) electronic mail software, ASIC products, and communicationsequipment and systems for government and commercial customers worldwide. Formore information on QUALCOMM products and technologies, please visit theCompany's web site at http://www.qualcomm.com. Except for the historical information contained herein, this news releasecontains forward-looking statements that are subject to risks anduncertainties, including timely product development and commercialimplementation of the Company's products, as well as the other risks detailedfrom time to time in the Company's SEC reports, including the report on Form10-K for the year ended September 28, 1997 and most recent Form 10-Q. QUALCOMM, OmniTRACS, QCELP and Eudora are registered trademarks and EudoraPro, MSM, MSM2310 and MSM3000 are trademarks of QUALCOMM Incorporated.Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporatedand ARM is a registered trademark of Advanced RISC Machines Limited. SOURCE QUALCOMM Incorporated CONTACT: Ed Knowlton, ASIC Products Marketing Communications,619-651-7942, or fax 619-658-1587, [email protected], or ChristineTrimble, Public Relations, 619-651-3628, or fax 619-651-2590,[email protected], or Julie Cunningham, Investor Relations, 619-658-4224,or fax 619-651-9303, [email protected], all of QUALCOMM Incorporated; orYutaka Shibata, Corporate Administration of Asahi Kasei Microsystems Co.,Ltd., 81-3-3320-2060, or fax 81-3-3320-2074, [email protected]; orKoujitsu Goto, Vice President of Marketing of AKM Semiconductor, Inc.,408-436-8580, or fax 408-436-7591, [email protected] Web site: http://www.qualcomm.com