QUALCOMM, Lucent and Microsoft Find Consumers Are Ready for Mobile Multimedia Services Now

LAS VEGAS, March 20, 2001 — QUALCOMM Incorporated (Nasdaq: QCOM), Lucent Technologies (NYSE: LU) and Microsoft Corp. (Nasdaq: MSFT) today announced the results of an independent IDC (International Data Corporation) North American research study commissioned by the three companies, which revealed that consumers want mobile multimedia services now.

IDC surveyed several end-user segments to determine what the most popular mobile Internet applications would be if significant wireless bandwidth, enabled by third-generation (3G) wireless networks, were available. The results found that overall interest was highest in accessing e-mail with large attachments, while the second highest-rated application was accessing pictures and music.

“The compelling finding of the IDC study was that consumers want to take advantage of mobile multimedia data services now to improve work productivity and enhance their lifestyles,”
said Jeff Jacobs, senior vice president of business development for QUALCOMM.
“The research underscores our belief that wireless service providers can meet these demands for the mobile Internet immediately with cost-effective 3G technologies like cdma2000 1x and cdma2000 1xEV, using existing spectrum and infrastructure.”

cdma2000 1x is an international 3G standard approved by the International Telecommunications Union and is an evolutionary step for current generation Code Division Multiple Access (CDMA) wireless systems. 1xEV, standardized by the Telecommunications Industry Association as TIA/EIA/IS-856, is an enhancement to cdma2000 and can deliver data speeds of up to 2.4 Mbps (megabits per second), enabling high-bandwidth applications like those identified by the survey respondents.

Mobile business users, general consumers and early adopters of technology in the United States were queried by IDC, providing a total sample of nearly 1,000. In addition to wireless e-mail and the ability to access pictures and music, other popular applications include Internet access during drive time and wireless access to information via the Internet and company intranets.

The study also found that 31 percent of those surveyed indicated that they had more than 30 minutes of time per day to take advantage of these services. Based on the results of this study, the three companies are working to identify ways to help stimulate the market for these services.

“The results of the IDC study demonstrated that there is a business case for mobile Internet services that require significant bandwidth,”
said Mike Iandolo, product management vice president for Lucent’s wireless networks business.
“We want to quickly and cost-effectively make these services a reality, as they will create new revenue streams for all the players involved and satisfy the business and lifestyle needs of the consumer.”

The three companies, along with IDC, also conducted market sizing and business modeling research for the North American market. IDC’s forecast shows the market for wireless high-speed data users growing to more than 27 million in 2007 from the projected 700,000 users who will sign up in 2002, when 3G technologies such as cdma2000 1x and 1xEV will be readily available.

“We anticipate rapid market growth as mobile professionals with children are the first to exploit the new cdma2000 1x and 1xEV services,”
said H. Paris Burstyn, vice president, communications consulting at IDC.

Our survey showed that these potential customers already have experience using leading-edge wireless technologies; they have a high level of interest in the applications 1xEV supports; and they express a willingness to pay for the service.

“Based upon the customer projections, the study projected that the market for these wireless services would grow to nearly two billion dollars in revenue during the second year of availability,”
Burstyn continued.

“The industry has suffered from unfulfilled promises in recent years, and it is important to work together to find the right combination of technologies, devices and services to provide to customers,”
said Dave Marutiak, business development manager for the Mobility Division at Microsoft.
“This research begins to give us a clear picture of what applications people need and want.”

QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company’s CDMA digital technology. The Company’s business areas include CDMA integrated circuits and system software; technology licensing; the Binary Run-time Environment for Wireless™ (BREW™ ) applications development platform; Eudora® e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress™ . QUALCOMM owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. QUALCOMM has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., QUALCOMM is included in the S & P 500 Index and is a 2000 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

Lucent Technologies, headquartered in Murray Hill, N.J. USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as broadband and mobile Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.com .

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including QUALCOMM’s ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, change in economic conditions of the various markets QUALCOMM serves, as well as the other risks detailed from time to time in QUALCOMM’s SEC reports, including the report on Form 10-K for the year ended September 24, 2000, and most recent Form 10-Q.

QUALCOMM, OmniTRACS and Eudora are registered trademarks, and OmniExpress is a trademark of QUALCOMM Incorporated. Globalstar is a trademark of Loral QUALCOMM Satellite Services, Incorporated. All other trademarks are the property of their respective owners.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.

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