CDMA CHOSEN AS CELLULAR STANDARD FOR KOREA -Ministry of Communications Selects CDMA: Commercial Service To Begin 1995- SAN DIEGO Q April 21, 1993 - The Korean Ministry of Communications (MOC) announced that it has selected Code Division Multiple Access (CDMA) for the Korean cellular telephone system. QUALCOMM Incorporated, (NASDAQ:QCOM), the developer of CDMA technology, indicated that the MOC has set a 1995 date for commercial CDMA service. According to Director General, Mr. In Hak Lee of the Radio Regulatory Office of the MOC, CDMA was selected after a careful evaluation of both TDMA and CDMA technologies. The basis for the selection was CDMA's multiple advantages. "CDMA has larger capacity, six or seven times that of TDMA, and provides excellent voice quality," he said. "Also, we can expect to save 30% of the system installation and operating expenses by using CDMA," Lee continued. With the selection of CDMA, the schedule for digital service implementation in Korea, originally planned for 1997, has been advanced two years. The schedule outlined by Mr. Lee now calls for prototype equipment in September 1994, followed by commercial field trials in early 1995 and commercial service later that year. CDMA subscriber and infrastructure equipment for the Korean network will be supplied by Korean manufacturers. Four major Korean cellular telephone equipment manufacturers and the Electronics and Telecommunications Research Institute (ETRI) of Korea will participate in the implementation of digital cellular equipment based on QUALCOMM's CDMA technology. "ETRI and the manufacturers will work closely with QUALCOMM to realize the early commercial deployment of CDMA network and subscriber equipment in Korea in 1995," said Dr. Seung Taik Yang, President of ETRI. "ETRI intends to make the first implementation of CDMA in Korea a showcase for other Asian countries." Each of the ETRI designated manufacturers, Goldstar Information & Communications, Ltd., Hyundai Electronics Industries Co., Ltd., Maxon Electronics Co., Ltd., and Samsung Electronics Co., has signed an agreement with QUALCOMM for the joint development of cellular telephone subscriber and infrastructure equipment. Maxon will produce subscriber equipment only, while the other three companies will develop both subscriber and infrastructure equipment. In addition to providing equipment for the Korean market, these manufacturers will provide alternate sources of CDMA equipment for networks in the U.S. and other countries interested in implementing CDMA. "The Korean MOC's choice of CDMA for its digital network demonstrates the growing international acceptance of the CDMA technology developed by QUALCOMM as a next generation mobile technology," said Irwin Jacobs, QUALCOMM's Chief Executive Officer. "With their new schedule for commercialization, Korea will parallel U.S. carriers in the implementation of CDMA." Three U.S. carriers, Bell Atlantic Mobile, PacTel Cellular and U S WEST NewVector Group, have announced purchases of, or plans to implement, CDMA networks in their U.S. cellular markets. U S WEST NewVector's plans include CDMA installation in its Seattle market beginning in late 1993 with commercial service available in late 1994. QUALCOMM Incorporated develops, manufactures, markets, licenses and operates advanced communications systems and products based on digital wireless technology. QUALCOMM's products include the OmniTRACSR system and digital wireless telephone systems and products based on Code Division Multiple Access (CDMA) technology. The company also develops and markets a range of VLSI devices. ### OmniTRACS is a registered trademark of QUALCOMM Incorporated. CDMA PUBLIC ANNOUNCEMENTS March 17, 1993 QUALCOMM Evaluates InterDigital Corporation's CDMA patents and determines they are either not necessary to build CDMA equipment compliant with the draft CDMA standard or embody technology first invented, developed and belonging to QUALCOMM. The draft CDMA standard was approved on March 15th by TR45.5 Subcommittee and issued to members of TIA for ballot. Ballots are due by April 16, 1993. March 17, 1993 Four Manufacturers Sign on For Korean CDMA Development. Goldstar, Hyundai, Maxon & Samsung Electronics were chosen by ETRI to participate in the implementation of CDMA in Korea. Each company has signed an agreement with QUALCOMM to jointly develop CDMA cellular subscriber and infrastructure equipment. March 2, 1993 QUALCOMM Introduces Hand-Held CDMA Portable Phone. The CD-7000 is the industry's first CDMA/analog portable telephone and can operate as a digital CDMA phone wherever CDMA service is available, and otherwise as a high-quality standard analog phone. Production quantities will be available in Fall 1993. March 2, 1993 QUALCOMM Announces Design for Mobile Station Modem (MSM) ASIC, which replaces previous CDMA subscriber three-chip set. The MSM chip reduces portable phone power requirements by 50%, as well as increases portable talk time, and is immediately available to licensed CDMA subscriber equipment manufacturers. March 2, 1993 FCC Grants QUALCOMM Experimental PCS License to conduct field trials and studies in the 1850-1990 MHz band. The company will demonstrate the feasibility of using its CDMA digital cellular system for personal communications services (PCS). February 22, 1993 QUALCOMM Introduces First Dual-Mode CDMA-AMPS Mobile Phone. The CD-3000 operates as a digital CDMA phone wherever digital service is available, and otherwise as a high-quality standard analog phone. This is the first in a series of CDMA-based cellular telephones designed by QUALCOMM. January 18, 1993 QUALCOMM and GTE conduct joint CDMA Trials in Tampa, Florida. The 30-day trial, funded by GTE Mobile Communications, will validate previous findings, and confirm benefits of CDMA for cellular applications in the Tampa market. December 21, 1992 CDMA Digital Cellular Technology Nears Standardization. Technical parameters and baseline text for a CDMA digital cellular standard adopted by TIA TR45.5 Subcommittee after unanimous vote to begin validation and verification process. December 3, 1992 Telecom Australia's Research Laboratories (TRL) signs contract for CDMA digital cellular telephone equipment for testing in Australia in the 800MHz band. QUALCOMM will provide several base stations, a switch, several mobile units and CDMA-specific test equipment, as well as its proprietary distributed antenna. November 23, 1992 Telesis Technologies Laboratory (TTL), a subsidiary of Pacific Telesis, announce joint testing of CDMA PCS system (1850 - 1990 MHz) in San Diego. Tests are currently underway and will continue through first quarter of 1993. September 30, 1992 CDMA goes to Wall Street. LOCATE and Bear, Stearns sign contract for CDMA technology and equipment for PCS applications. Contract covers equipment to be used for testing prior to CDMA implementation on Wall Street at Bear, Stearns & Co., Inc. September 21, 1992 QUALCOMM successfully completes CDMA cellular demonstration in Geneva with Swiss PTT. Trials were conducted in the 800 - 900 MHz band and allowed the Swiss to compare CDMA with European GSM standard. August 20, 1992 Ameritech announces first dual digital cellular trial of CDMA and TDMA technology. The trials will be based in Chicago metropolitan area beginning in September and lasting 60 days. August 18, 1992 QUALCOMM & ETRI announce commencement of Phase II of contract to jointly design and develop CDMA-based digital cellular system for metropolitan area in Korea. July 15, 1992 Mitsubishi Electric Signs CDMA Technology Support Agreement, positioning themselves to join as licensee. June 10, 1992 A resolution of the Cellular Telecommunications Industry Association's Board of Directors requests expeditions development of a CDMA wideband spread spectrum digital cellular standard. June 4, 1992 Bell Atlantic Mobile Systems, Inc. announces plans to conduct field trials of CDMA digital technology in its Washington, D.C. cellular system. May 28, 1992 Demonstrations of a CDMA-based digital cellular system are completed in the Federal Republic of Germany in cooperation with Deutsche Budespost Telekom (DBP Telekom). Data garnered during the trials will be assessed for possible use in both mobile and fixed location wireless loop applications. May 21, 1992 QUALCOMM is awarded U.S. patent number 5,101,501 for its method of providing a "soft" hand-off in a CDMA digital cellular telephone system. To date seven CDMA patents have been issued, with 16 pending. April 16, 1992 American Personal Communications (APC) announces a multimillion dollar contract with QUALCOMM for the purchase of CDMA equipment to test APC's Frequency Agile Sharing Technology (FAST) in the Washington, D.C./Baltimore area. April 13, 1992 Nokia Mobile Phones announces they have signed a multimillion dollar licensing agreement with QUALCOMM for CDMA technology. March 9, 1992 QUALCOMM'S CDMA Digital Cellular Common Air Interface (CAI) specification is accepted as a contribution by the Telecommunications Industry Association's subcommittee TR45.5 as a proposed wideband spread spectrum standard. March 2, 1992 QUALCOMM announces that the Federal Communications Commission (FCC) has granted the company an experimental license to conduct trials demonstrating personal communications services (PCS) in the 1850-1990 MHz band. March 2, 1992 Matsushita Communications Industrial Co., Ltd. signs a support agreement with the company for CDMA technology. January 3, 1992 Northern Telecom signs a multimillion dollar licensing agreement with QUALCOMM for CDMA technology. It joins previously announced licensees AT&T, Motorola and OKI telecom. December 6, 1991 The company announces the successful completion of formal Phase Two field validation tests of CDMA with the participation of 14 carriers and manufacturers. Results of the trials show increases in capacity in excess of 10 times the current analog system, as well as improvements in quality. November 22, 1991 U.S. patent number 5,056,109 is awarded to the company for its method of controlling transmission power in CDMA digital cellular systems. October 7, 1991 QUALCOMM announces availability of its CDMA Application Specific Integrated Circuit (ASIC) chip set. The ASIC's are offered to manufacturers under licensing agreement. August 29, 1991 U.S. West NewVector Group joins the CDMA field trial evaluation team. August 7, 1991 OKI telecom, a participant in the CDMA field trials, signs a licensing agreement with QUALCOMM for CDMA technology. July 31, 1991 Formal Phase Two field validation trials of CDMA technology begin. July 25, 1991 Bell Atlantic Mobile Systems, Inc. signs on as a CDMA field trial evaluation team member. July 23, 1991 Toronto-based Bell Cellular announces they will participate in CDMA field trials. July 17, 1991 GTE Telecommunications joins as a member of the CDMA field trial evaluation team. May 23, 1991 The Korean Electronics and Telecommunications Research Institute (ETRI) and QUALCOMM sign a joint development agreement valued at $17 million to develop digital cellular network and subscriber equipment using CDMA technology. May 10, 1991 Alpine/Alps Electric and QUALCOMM create joint venture to manufacture, market and distribute CDMA digital cellular telephones and other wireless products worldwide. [ lots of early development here... ]