Qualcomm and Ericsson Settle One of Their Several Lawsuits

SAN DIEGO – June 06, 1997 – Qualcomm Incorporated (NASDAQ: QCOM) and Ericsson, Inc. have settled one of several lawsuits pending between the companies. The agreement was filed today in federal court in San Diego and resolves the patent infringement lawsuit which Qualcomm filed against Ericsson on March 20, 1997 in federal court in San Diego.

For the seven-month term of the agreement, Ericsson agreed that Ericsson and its affiliates will not make, sell, offer to sell, use, import or commercially introduce in the United States any CDMA subscriber products or equipment unless such products or equipment have been licensed by Qualcomm or unless Ericsson first gives Qualcomm thirty days notice of Ericsson's intended activity. Ericsson further represented and warranted that to date neither it nor its affiliates have made, used, manufactured, sold, or offered to sell such products in the United States, although Ericsson did not state whether it plans to make or sell CDMA subscriber products or equipment in the U.S. during or after the seven-month term of the agreement.

Based on Ericsson's agreements and representations, Qualcomm dismissed without prejudice its patent infringement claims against Ericsson in the San Diego court, and Ericsson agreed that for the next seven months, Ericsson will not file any lawsuit against Qualcomm or any of its customers or licensees related to Ericsson's actual or intended CDMA subscriber products or equipment without first giving Qualcomm thirty days notice. The companies further stipulated that if any such lawsuit arises, it can proceed only in San Diego.

Today's agreement does not affect other litigation between the companies pending in Texas, nor does it impact a lawsuit filed last September against Ericsson by OKI America, Inc. in federal court in San Jose, California, in which OKI is seeking a judicial declaration that its CDMA products do not infringe certain patents of Ericsson. A decision on Qualcomm's motion to intervene in the San Jose action is pending.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit (LEO) satellite communications system. Other Company products include the Eudora Pro™ electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com.

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Qualcomm, OmniTRACS and Eudora are registered trademarks and Eudora Pro is a trademark of Qualcomm Incorporated. Globalstar is a trademark of Loral Qualcomm Satellite Services.