QUALCOMM Contact: Julie Cunningham Sr.

Vice President, Investor Relations 1-(858) 658-4224 (ph) 1-(858) 651-9303 (fax) e-mail: juliec@qualcomm.com

QUALCOMM Announces Record First Quarter Fiscal 2003 Results GAAP Reported Revenues $1.1 Billion and $0.30 EPS Revenues $1.1 Billion and $0.42 EPS Excluding QSI Segment
QUALCOMM’s first quarter fiscal 2003 earnings conference call will be broadcast live on January 22, 2003 beginning at 2:30 p.m. Pacific Standard Time on the Company’s web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The taped audio replay will be available for five business days. To listen to the replay, U.S. callers may dial (800) 633-8284 and international callers may dial (402) 977-9140. Both U.S. and international callers should use reservation number 21095067.

SAN DIEGO – January 22, 2003 – QUALCOMM Incorporated (NASDAQ: QCOM) today announced its first quarter fiscal 2003 results ended December 29, 2002. GAAP reported revenues were $1.1 billion in the first fiscal quarter, up 26 percent sequentially and 57 percent year-over-year. Revenues increased primarily due to record demand for CDMA products across global markets. GAAP reported net income was $241 million or $0.30 per share in the first fiscal quarter, up 30 percent sequentially and 76 percent year-over-year. Revenues excluding the QUALCOMM Strategic Initiatives (QSI) segment were $1.1 billion in the first fiscal quarter, up 27 percent sequentially and 54 percent year-over-year. Net income excluding the QSI segment was $345 million or $0.42 per share in the first fiscal quarter, up 35 percent sequentially and 83 percent year-over-year (please see page 9 for detailed results). “QUALCOMM’s exceptionally strong performance in the first fiscal quarter was fueled by the successful commercial deployment of third generation CDMA networks, which now total 35 operators in 17 countries around the world,” said Dr. Irwin Mark Jacobs, chairman and CEO of QUALCOMM. “We achieved record revenues and earnings in both our QTL technology licensing business and our QCT semiconductor business, with shipments of approximately 29

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and the year-over-year increase was primarily due to the shift in product mix toward higher-end 3G CDMA2000 1X products and increased efficiency resulting from economies of scale. The sequential decrease in gross margins was primarily due to a lower percentage of total revenues coming from QUALCOMM Technology Licensing (QTL). compared to 22 percent in the year ago period. .QUALCOMM Announces First Quarter Fiscal 2003 Results Page 2 of 11 million MSM phone chips during the first fiscal quarter.” Gross margins excluding the QSI segment were 67 percent in the first fiscal quarter. Selling. down from 69 percent sequentially and up from 66 percent year-over-year. We anticipate significant growth in China and India this year as China Unicom. up 66 percent sequentially and 5 percent year-over-year. general and administrative (SG&A) expenses excluding the QSI segment were $107 million in the first fiscal quarter. Research and development (R&D) expenses excluding the QSI segment were $110 million in the first fiscal quarter. Tata Teleservices and other wireless operators introduce commercial CDMA2000 1X service. Investment income excluding the QSI segment is primarily comprised of interest income on corporate cash and marketable debt securities and other-than-temporary losses on debt securities. enhancing data revenues and encouraging an early migration to 3G CDMA. GSM/GPRS and WCDMA technologies. up 3 percent sequentially and 6 percent year-over-year. Reliance InfoComm. Our annual effective income tax rate on GAAP reported earnings for fiscal 2003 is estimated to be 38 percent. up 4 percent sequentially and 18 percent year-over-year. The increase in R&D investment was primarily due to product development efforts to support high-speed wireless Internet access and multimode. QUALCOMM’s annual effective income tax rate on earnings excluding the QSI segment for fiscal 2003 is estimated to be 34 percent. Investment income excluding the QSI segment was $26 million in the first fiscal quarter. We are continuing to see very strong demand in the Americas and throughout Asia for our industry-leading chipsets and system software. multiband. compared to 35 percent in the year ago period. multinetwork chips supporting cdmaOne. Our end-to-end BREW platform is supporting an ever increasing variety of applications. CDMA2000 1X/1xEV-DO. The sequential increase in investment income resulted from lower other-than-temporary losses on debt securities. radioOne.

which are primarily related to the consolidation of the Vesper Companies.35 in the second fiscal quarter. QSI losses before taxes were $133 million in the first fiscal quarter. We anticipate that operating expenses will increase in the second fiscal quarter compared to the first fiscal quarter due to seasonal factors such as higher employee payroll taxes and public company expenses. were $29 million in the first fiscal quarter. including the Vesper Companies in Brazil. Fiscal 2003 • Based on the current business outlook. This estimate is based on the sale of 105-112 million CDMA . QSI revenues. This represents 93 percent growth in MSM chip shipments year-over-year. we anticipate that revenues excluding the QSI segment in the second fiscal quarter will increase by approximately 50 percent year-overyear and decrease sequentially by approximately 7 percent. a 29 percent decrease in losses sequentially.$1. down 15 percent sequentially largely due to changes in foreign exchange rates of the Brazilian real.34 . a 75 percent increase year-over-year.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 3 of 11 QUALCOMM Strategic Initiatives The QUALCOMM Strategic Initiatives (QSI) segment includes our strategic investments and related income and expenses. Business Outlook The following statements are forward-looking and actual results may differ materially.39 for fiscal 2003. Included in the QSI losses was $30 million of losses from Vesper.34-$0. We anticipate that earnings per share excluding the QSI segment will be approximately $0. up 36 percent sequentially primarily due to a $28 million increase in other-than-temporary losses on investments. Please see page 8 for a description of certain risk factors and QUALCOMM’s quarterly reports on file with the Securities and Exchange Commission (SEC) for a more complete description of risks. we anticipate that revenues excluding the QSI segment will grow by approximately 28-33 percent year-over-year and earnings per share excluding the QSI segment to be in the range of $1. Second Quarter Fiscal 2003 • Based on the current business outlook. This estimate assumes shipments of approximately 27 million MSM phone chips during the quarter. up 37-42 percent year-over-year. of which approximately 86 percent is expected to be 3G CDMA2000 MSM phone chips.

depreciation. cash equivalents and marketable securities. cash equivalents and marketable securities of QUALCOMM. but excludes the QSI segment. amortization and asset impairments. excluding QSI Change in fair value of marketable securities Transfers from QSI (1) Transfers to QSI (2) Net increase in cash. consists of a $459 million increase in marketable securities held by QUALCOMM. excluding QSI. cash equivalents and marketable securities of QUALCOMM. The following table presents selected cash flow information for the first quarter of fiscal 2003. operations of Vesper and other QSI operating expenses. (2) Funding for strategic debt and equity investments. (in millions): Selected Cash Flow Information Earnings before taxes. and the $214 million change in cash and cash equivalents shown in the Company’s Form 10-Q cash flow statement. (3) The difference between the $677 million net increase in cash. upon which royalties are calculated.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 4 of 11 phones in calendar 2003 with approximately 10 percent decrease in average selling prices of CDMA phones. not in QSI. excluding the QSI segment.7 billion at the end of the first quarter of fiscal 2003. Cash Flow QUALCOMM’s cash. excluding cash and marketable securities in QSI (3) First Quarter Fiscal 2003 $ 555 (196) 56 (77) 338 19 390 (70) $ 677 (1) Cash from loan payments and sale of equity securities. which includes cash equivalents and marketable securities. excluding QSI Working capital changes and tax paid Net additional share capital Capital expenditures Net cash provided. totaled approximately $3. and a $4 million decrease in cash in QSI. .

334 33% QTL 243.688 13.803 188. Reconciling Items related to earnings before taxes consist primarily of charges that are not allocated to the segments for management reporting purposes.196) (1%) Other/ Reconciling QUALCOMM Items (1) excluding QSI 3. non-reportable segment results.282 41% 82% 232% QTL 255.481 221.671 5.033 N/M 46% Segments Revenues Earnings before taxes % of revenues QCT 359.233) (1%) Other/ Reconciling QUALCOMM Items (1) excluding QSI 13. interest expense and the elimination of intercompany profit.449 N/M 41% (1) Other/Reconciling Items related to revenues consist primarily of other non-segment revenues less intersegment eliminations.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 5 of 11 Results of Business Segments The following tables present operations segment information.964 N/M 27% N/M 54% 1.144 86.Fiscal Year 2002 QCT 709.761 3% 331% 324% Segments Revenues Earnings before taxes % of revenues First Quarter .941 24% QTL 210.300 N/M 49% N/M 36% N/M 82% Segments Revenues Change from prior quarter Change from prior year Earnings before taxes % of revenues Change from prior quarter Change from prior year Fourth Quarter .Fiscal Year 2003 Other/ Reconciling QUALCOMM Items (1) excluding QSI (6.067.681 47% 98% 288.121) 1.423 5% 21% 229.446 692.409 90% 4% 22% QWI 108.981 (1%) 0% 2.617 158. excluding the QSI segment (in thousands): First Quarter .500 91% QWI 109.031 839.295 (1.395 384.Fiscal Year 2002 QCT 483. unallocated net investment income. N/M – Not Meaningful .688 90% QWI 109.848 522.542 (1.053 287.

2 million equivalent voice channels. a highly integrated solution that supports GSM/GPRS and WCDMA. Offering support for numerous multimedia functions and position location capabilities. • Shipped approximately 23 million 3G CDMA2000 1X/1xEV-DO MSM phone chips during the first fiscal quarter for a cumulative total of nearly 70 million 3G CDMA2000 MSM phone chips. making gpsOne the most widely deployed commercial position location technology worldwide. as well as roaming on GSM/GPRS systems. down from 2. highspeed wireless data solution that supports the industry-wide CDMA2000 standards. • Named "2002 Best Financially Managed Company" by the Fabless Semiconductor Association for outstanding financial performance. • Announced that more than five million gpsOne™-enabled devices are now in commercial use in Japan. Based on royalty reports for the September quarter of 2002: . up from approximately 20 million units sequentially and approximately 15 million units in the year ago quarter. a high-capacity. • Announced the MSM6250™ chipset and system software. including four new licenses and four extensions to existing license agreements. • Shipped CSM infrastructure chips to support more than 2.5 million sequentially and up from approximately one million in the year ago quarter. also known as UMTS in Europe. QUALCOMM Technology Licensing (QTL) • Signed a total of eight CDMA license agreements during the first fiscal quarter. • Announced the MSM6500™ chipset and system software.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 6 of 11 Business Segment Highlights QUALCOMM CDMA Technologies (QCT) • Shipped approximately 29 million MSM phone chips to customers worldwide during the first fiscal quarter. South Korea and the United States. the MSM6250 chip is an upgrade to the MSM6200 that will enable phones to support rich multimedia data applications and operate on all GSM/GPRS and WCDMA networks that meet International Telecommunications Union (ITU) standards worldwide.

the China BREW Application Development Consortium Meeting. extended its contract to provide a wireless application service based on QUALCOMM’s BREW solution. • Announced that KTF. helping build momentum for China Unicom's launch of BREW-enabled services. a leading South Korean wireless operator. KTF has more than 2. QUALCOMM Wireless Business Solutions (QWBS) • Shipped approximately 10. • Announced that QUALCOMM's BREW solution can now automatically provision wireless devices with a Java™-technology based virtual machine and Java applets over the air using the Insignia Mobile Foundation Java-enabling software. a gathering of Chinese wireless application developers and wireless device manufacturers. anywhere.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 7 of 11 • • Twenty-seven subscriber licensees reported sales of CDMA2000 1X products and seven subscriber licensees reported sales of WCDMA products. This brings the cumulative total to over 460. down 28 percent sequentially and up 13 percent year-over-year. • Hosted with China Unicom. the complete end-to-end solution that enables over-the-air downloading of applications virtually anytime. Hundreds of developers and manufacturers attended.4 million users of their BREW-based magic n multipack™ service. The joint venture will capitalize on the technical advantages of BREW technology. Twelve infrastructure licensees reported sales of CDMA2000 1X products and seven infrastructure licensees reported sales of WCDMA products.000 units shipped worldwide.600 OmniTRACS units and related products in the first fiscal quarter. QUALCOMM Wireless & Internet Group (QWI) QUALCOMM Internet Services (QIS) • Announced an agreement with China Unicom to create a joint venture that will foster the growth of the Chinese developer community and QUALCOMM’s BREW platform in China. the competitive advantages of CDMA in wireless data and the versatile operating capabilities of China Unicom. .

Actual results may differ substantially from those referred to herein due to a number of factors. including CDMA2000 1xEV-DO and systems in new markets such as China and India. gpsOne™. changes in the fair values of marketable securities and derivative instruments held. QUALCOMM Incorporated (www. particularly in the telecommunications and Internet-related industries and the resulting uncertainty in forecasting future results. the state of Minas Gerais and in the Northeast region of Brazil. and international business activities. loans.qualcomm. as well as the other risks detailed from time-to-time in the Company’s SEC reports. customer receivables and performance guarantees. acquisitions or divestitures the Company has or may pursue. Calif. QCT®. this news release contains forwardlooking statements that are subject to risks and uncertainties. MSM™. strategic investments. . Except for the historical information contained herein. QUALCOMM Wireless Business Solutions®.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. including but not limited to risks associated with: changing global economic conditions. decreases in the rate of growth in CDMA-based wireless data and Internet access or the CDMA subscriber population. All other trademarks are the property of their respective owners. Vesper™ and BREW™ are trademarks and/or service marks of QUALCOMM Incorporated. the development. QUALCOMM is included in the S&P 500 Index and traded on The Nasdaq Stock Market under the ticker symbol QCOM. MSM6500™. component shortages. integrated circuit inventory and order levels.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 8 of 11 QUALCOMM Strategic Initiatives (QSI) • Won bids to acquire mobile licenses for the Vesper Companies in the state of Sao Paulo (excluding Sao Paulo metro). the ability to sustain or improve operational efficiency and profitability. the performance of the Vesper Companies business in Brazil. Headquartered in San Diego. acceptance and operations of CDMA systems.. MSM6250™. OmniTRACS®. the Company’s ability to execute additional 3G licenses. QUALCOMM®. timing and receipt of license fees and royalties. according to Morgan Stanley. The new mobile licenses cover areas with a combined population in excess of 64 million. the scale-up. developments in current or future litigation. deployment and commercial acceptance of evolving CDMA technology standards. radioOne™.

972 570.404 110.300 (177.830 287.542) (76.718 0. 142.539 (1. Includes $66 million other-than-temporary losses on investments.688) (d) (133.001 112.205 29.100 (a) 522.169 388.706 1.097.881) (50.205 36. 2002 through November 30.999 1.122 692.574 $ 828. net of minority interest.718 (6.051) (b) 29.334 0.42 815.479 147. Includes $30 million loss.451 446.821) (5. Starting in fiscal 2003.576 263.588) 389.112 (493) 24. December 29.247 106.258 239.339) 26. 2001 2002 % 2002 Excluding QSI Excluding QSI Change QSI GAAP Reported Revenues: Equipment and services Licensing and royalty fees Operating expenses: Cost of equipment and services revenues Research and development Selling.915) (c) 241.716 0.316 104.369 90.688 234.733) 189. respectively. general and administrative Amortization of other acquisition-related intangible assets Total operating expenses Operating income (loss) Interest expense Investment income (expense).384) $ $ $ 857. . cash equivalents and marketable debt securities.30 815. except per share data) (Unaudited) Three Months Ended December 30. net Income (loss) before income taxes Income tax (expense) benefit Net income (loss) Net earnings per common share: Diluted Shares used in per share calculations: Diluted $ 483. 2002 due to the Company’s practice of consolidating foreign subsidiaries one month in arrears.802 1.449 (97.026 (50.891 (e) 429.667 (103.067.706 1. which are not part of the Company’s strategic investment portfolio.972 650. of Vesper Holdings from September 1. December 29. the Company no longer records goodwill amortization in accordance with Statement of Financial Accounting Standards No. The estimated fiscal year 2003 effective tax rate for operations excluding QSI and GAAP reported results are 34% and 38%. Goodwill amortization has been excluded from first quarter fiscal 2002 results to provide a consistent basis for financial comparison.566 209.597 2.463 239.249 (147.23 809.232 41. $33 million equity losses in investees.425 497.964 351.745 33% 89% 172% 5% 82% 82% 82% $ $ $ $ $ (a) (b) (c) (d) (e) Includes $27 million in interest income related to cash. $14 million minority interest in loss of consolidated subsidiaries and $7 million interest income.197 80.582) (c) 344.745 71% 15% 54% 50% 6% 18% $ 29.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 9 of 11 QUALCOMM Incorporated CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM RESULTS EXCLUDING QSI TO THE GAAP REPORTED RESULTS (In thousands.

396 88.936 4.818 80 5.521 $ $ $ (a) Includes the consolidated Vesper Holdings balance sheet at November 30.168) 5.707.958) 5.324 107.219 6. .939 194.0001 par value Paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity 80 5.966 99.497 127.444 3.956 6.928.248 440. net Other assets Total assets $ 1. net Finance receivables.411.240 661.025 44.889 2.901.995 94.894 251.139 845.059 $ 7.710 255.862 626 156.356 4.094 109.768 (27.835.883 173.028.950 388.098 3.081 674.406.302 640.267 21.391.812 346.938 21.166.703 177.949) 5.704 1. 2002 $ 1. except per share data) (Unaudited) ASSETS QUALCOMM Excluding QSI December 29.438 $ 194.521 $ $ 1.624 (130.971 201.418 126.571 654.918.609 5.542 448.691 6.368.139 845.605 139.049 $ 209.283 344.503 239.0001 par value Common stock.028.042 1.215 79.940.753 4.509.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 10 of 11 QUALCOMM Incorporated CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands.620.414 686.346 444.388.005 183. net Inventories. 2002 $ 19.308 3.920 476.771 9.210) 234.796 1.766 381.617 865. $0.958 (40.427 QUALCOMM December 29.202 604. net Goodwill. 2002 Current assets: Cash and cash equivalents Marketable securities Accounts receivable.660 687.319 156.880 21.482 156.072 $ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable Payroll and other benefits related liabilities Unearned revenue Other current liabilities Total current liabilities Unearned revenue Long-term debt Other liabilities Total liabilities Minority interest in consolidated subsidiaries Stockholders' equity: Preferred stock.123.049 QUALCOMM September 29.178 536. The Company consolidates foreign subsidiaries one month in arrears.222 21.293 1.793.770 345.889 42. $0.611 $ 150.356 575.616 152.756 1. 2002 $ 1.721 493.600.073.803 436.986 259.445 966 6.737 108. plant and equipment.632 5.358 100.055 234.777 57.123.105.865 241.765 391.210) (27.540 79 4.094 172.630 442.639.645 114.032 250.958 (68.342 50 $ 43.509. net Other current assets Total current assets Marketable securities Finance receivables.960 24. 2002.934 276.327 4.009 $ 7.120 1. net Other investments Property.774 250.288 43.977 QSI (a) December 29.693 39.

463 239.915) $ 241.197 106.588) 389.318) 139. December 30.745 764. net Income before income taxes Income tax expense Net income Net earnings per common share: Basic Diluted Shares used in per share calculations: Basic Diluted $ 857.092 209.551 (78.097.574 .451 446.765 63.233 $ $ $ 0.249 (147.081 (2.972 650.001 112.334 $ 489.706 1. 2002 2001 Revenues: Equipment and services Licensing and royalty fees Operating expenses: Cost of equipment and services revenues Research and development Selling.479 147.QUALCOMM Announces First Quarter Fiscal 2003 Results Page 11 of 11 QUALCOMM Incorporated GAAP REPORTED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (In thousands.17 783.959 809.550 698.642 245.731 516.718 (6.31 0.868 100.30 $ $ 0.999 1.169 388.280 815.561 182. except per share data) (Unaudited) Three Months Ended December 29.032 217. general and administrative Amortization of goodwill and other acquisition-related intangible assets Total operating expenses Operating income Interest expense Investment (expense) income.881) (50.562) 38.18 0.