SAN DIEGO, Jul 24, 2008 (PR Newswire Europe via COMTEX) ----Revenues US$2.8 Billion, EPS US$0.45

- Pro Forma EPS US$0.55

Qualcomm Incorporated (Nasdaq: QCOM) today announced results for the third fiscal quarter of 2008 ended June 29, 2008.

Qualcomm's third quarter fiscal 2008 earnings conference call has been rescheduled to Thursday, July 24, 2008, beginning at 8:00 a.m. Eastern Daylight Time (5:00 a.m. Pacific Daylight Time). Conference call details are included herein.

Total Qualcomm (GAAP) Third Quarter Results

Total Qualcomm results are reported in accordance with generally accepted accounting principles (GAAP).

-- Revenues: US$2.8 billion,
   up 19 percent year-over-year and 6 percent sequentially. -- Net income: US$748 million, down 6 percent year-over-year and
   2 percent sequentially. -- Diluted earnings per share: US$0.45, down 4 percent year-over-year and sequentially. -- Effective
   tax rate: 15 percent for the quarter. Fiscal 2008 estimated tax rate of approximately 16 percent. -- Estimated share-based
   compensation: US$94 million, net of tax, up 24 percent year-over-year and 7 percent sequentially. -- Operating cash flow:
   US$739 million, down 25 percent year-over-year; 27 percent of revenues. -- Return of capital to stockholders: US$261 million,
   or US$0.16 per share, of cash dividends paid. 

Qualcomm Pro Forma Third Quarter Results

Pro forma results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process research and development (R&D) expense.

-- Revenues: US$2.8 billion, up 19
   percent year-over-year and 6 percent sequentially. -- Net income: US$915 million, down 2 percent year-over-year and up 2 percent
   sequentially. -- Diluted earnings per share: US$0.55, even year-over-year and up 2 percent sequentially; excludes US$0.04
   loss per share attributable to the QSI segment, US$0.06 loss per share attributable to certain estimated share-based compensation
   and US$0.01 loss per share attributable to acquired in-process R&D. (The sum of pro forma earnings per share and items
   excluded do not equal total Qualcomm (GAAP) earnings per share due to rounding.) -- Effective tax rate: 18 percent for the
   quarter. Fiscal 2008 estimated tax rate of approximately 19 percent. -- Free cash flow: US$844 million, down 14 percent year-over-year;
   31 percent of revenues (defined as net cash from operating activities less capital expenditures). 

Detailed reconciliations between total Qualcomm (GAAP) results and cash flow and Qualcomm pro forma results and cash flow are included at the end of this news release. Prior period reconciliations are presented on Qualcomm's Investor Relations web page at www.qualcomm.com.

"We are pleased to report another strong quarter as the migration to 3G-enabled products continues to accelerate," said Dr. Paul E. Jacobs, chief executive officer of Qualcomm. "We delivered record revenues, up 19 percent year-over-year, and our pro forma earnings per share were at the high end of our prior estimate.

"I am also pleased to announce that we have reached a settlement agreement with Nokia that resolves all litigation between the companies and will allow both of us to focus our efforts on driving the global 3G and 4G markets forward. In addition to providing an up-front royalty payment and other benefits, Qualcomm will also receive ongoing royalties for all CDMA standards, as well as single-mode OFDMA. I look forward to providing our updated guidance tomorrow morning."

Cash and Marketable Securities

Qualcomm's cash, cash equivalents and marketable securities totaled approximately US$11.2 billion at the end of the third quarter of fiscal 2008, compared to US$10.6 billion at the end of the second quarter of fiscal 2008 and US$12.3 billion a year ago. On July 16, 2008, we announced a cash dividend of US$0.16 per share payable on September 26, 2008 to stockholders of record at the close of business on August 29, 2008.

Estimated Share-Based Compensation

Total Qualcomm (GAAP) net income for the third quarter of fiscal 2008 included estimated share-based compensation, net of tax, of US$94 million, or US$0.06 per diluted share. This compares to US$76 million, or US$0.04 per diluted share, in the prior year quarter.

Research
   and Development (All Amounts in US Dollars unless otherwise specified) Estimated Total Qualcomm Pro Share-Based In-Process
   Qualcomm ($ in millions) Forma Compensation R&D QSI (GAAP) Third quarter fiscal 2008 $495 $64 $13 $24 $596 As a % of revenue
   18% N/M 22% Third quarter fiscal 2007 $385 $50 $- $19 $454 As a % of revenue 17% 20% Year-over-year change ($) 29% 28% 26%
   31% N/M - Not Meaningful 

Pro forma R&D expenses increased 29 percent year-over-year, primarily due to an increase in costs related to the development of integrated circuit products, next-generation CDMA and OFDMA technologies, the expansion of our intellectual property portfolio and other initiatives to support the acceleration of advanced wireless products and services, including lower-cost devices, the integration of wireless technologies with consumer electronics and computing, the convergence of multiband, multimode, multinetwork products and technologies, third-party operating systems and services platforms. QSI R&D expenses were related to MediaFLO USA.

Selling, General and Administrative Estimated Total
   Qualcomm Pro Share-Based Qualcomm ($ in millions) Forma Compensation QSI (GAAP) Third quarter fiscal 2008 $357 $65 $31 $453
   As a % of revenue 13% N/M 16% Third quarter fiscal 2007 $307 $54 $40 $401 As a % of revenue 13% 17% Year-over-year change($)
   16% 20% (23%) 13% 

Pro forma selling, general and administrative (SG&A) expenses increased 16 percent year-over-year, primarily attributable to an increase in certain professional fees, primarily related to patent activities, and employee-related expenses. QSI SG&A expenses were primarily related to MediaFLO USA.

Effective Income Tax Rate

Without the potential effect of our settlement agreement with Nokia, our fiscal 2008 effective income tax rates are estimated to be 16 percent for total Qualcomm (GAAP) and 19 percent for Qualcomm pro forma. The third quarter total Qualcomm (GAAP) and Qualcomm pro forma effective tax rates of 15 percent and 18 percent, respectively, are lower than the estimated annual effective tax rates, primarily due to the change in our estimate of foreign earnings taxed at less than the United States federal tax rate.

Qualcomm Strategic Initiatives

The QSI segment includes our strategic investments, including our MediaFLO USA subsidiary, and related income and expenses. Total Qualcomm (GAAP) results for the third quarter of fiscal 2008 included a US$0.04 loss per share for the QSI segment. The third quarter of fiscal 2008 QSI results included $88 million in operating expenses, primarily related to MediaFLO USA.

Results of Business Segments (in millions, except per share data): Third
   Quarter - Fiscal Year 2008 Qualcomm Reconciling Pro Segments QCT QTL QWI Items (1) Forma Revenues $1,762 $803 $190 $3 $2,758
   Change from prior year 29% 5% (3%) N/M 19% Change from prior quarter 9% 1% (2%) N/M 6% EBT $487 $670 $(1) $(40) $1,116 Change
   from prior year 11% 0% N/M N/M (5%) Change from prior quarter 14% (2%) N/M N/M 2% EBT as a % of revenues 28% 83% (1%) N/M
   40% Net income (loss) $915 Change from prior year (2%) Change from prior quarter 2% Diluted EPS $0.55 Change from prior year
   0% Change from prior quarter 2% Diluted shares used 1,654 Estimated Total Share-Based In-Process Qualcomm Segments Compensation(2)
   R&D QSI(3) (GAAP) Revenues $- $- $4 $2,762 Change from prior year N/M 19% Change from prior quarter 100% 6% EBT $(139)
   $(13) $(82) $882 Change from prior year (22%) N/A 10% (9%) Change from prior quarter (7%) N/A (30%) (3%) EBT as a % of revenues
   N/A N/A N/M 32% Net income (loss) $(94) $(13) $(60) $748 Change from prior year (25%) N/A 2% (6%) Change from prior quarter
   (7%) N/A (50%) (2%) Diluted EPS $(0.06) $(0.01) $(0.04) $0.45 Change from prior year (50%) N/A 0% (4%) Change from prior quarter
   (20%) N/A (100%) (4%) Diluted shares used 1,654 1,654 1,654 1,654 

Second Quarter - Fiscal Year 2008 Qualcomm Reconciling
   Pro Segments QCT QTL QWI Items (1) Forma Revenues $1,620 $795 $194 $(5) $2,604 EBT 427 684 - (12) 1,099 Net income (loss)
   894 Diluted EPS $0.54 Diluted shares used 1,643 Estimated Total Share-Based Qualcomm Segments Compensation(2) QSI(3) (GAAP)
   Revenues $- $2 $2,606 EBT (130) (63) 906 Net income (loss) (88) (40) 766 Diluted EPS $(0.05) $(0.02) $0.47 Diluted shares
   used 1,643 1,643 1,643 Third Quarter - Fiscal Year 2007 Qualcomm Reconciling Pro Segments QCT QTL QWI Items (1) Forma Revenues
   $1,367 $766 $196 $(4) $2,325 EBT 439 668 18 52 1,177 Net income (loss) 934 Diluted EPS $0.55 Diluted shares used 1,704 Estimated
   Total Share-Based Qualcomm Segments Compensation(2) QSI(3) (GAAP) Revenues $- $- $2,325 EBT (114) (91) 972 Net income (loss)
   (75) (61) 798 Diluted EPS $(0.04) $(0.04) $0.47 Diluted shares used 1,704 1,704 1,704 Fourth Quarter - Fiscal Year 2007 Qualcomm
   Reconciling Pro Segments QCT QTL QWI Items (1) Forma Revenues $1,419 $647 $245 $(6) $2,305 EBT 424 537 31 137 1,129 Net income
   (loss) 911 Diluted EPS $0.54 Diluted shares used 1,689 Estimated Total Share-Based Tax Items Qualcomm Segments Compensation(2)
   (4) QSI(3) (GAAP) Revenues $- $- $1 $2,306 EBT (117) - (64) 948 Net income (loss) (77) 331 (34) 1,131 Diluted EPS $(0.05)
   $0.20 $(0.02) $0.67 Diluted shares used 1,689 1,689 1,689 1,689 

Twelve Months - Fiscal Year 2007 Qualcomm Reconciling
   Pro Segments QCT QTL QWI Items (1) Forma Revenues $5,275 $2,772 $828 $(5) $8,870 EBT 1,547 2,340 88 388 4,363 Net income (loss)
   3,406 Diluted EPS $2.01 Diluted shares used 1,693 Estimated Total Share-Based Tax Items In-Process Qualcomm Segments Compensation(2)
   (4) R&D QSI (GAAP) Revenues $- $- $- $1 $8,871 EBT (487) - (10) (240) 3,626 Net income (loss) (321) 364 (9) (137) 3,303
   Diluted EPS $(0.19) $0.22 $(0.01) $(0.08) $1.95 Diluted shares used 1,693 1,693 1,693 1,693 1,693 Nine Months - Fiscal Year
   2008 Qualcomm Reconciling Pro Segments QCT QTL QWI Items (1) Forma Revenues $4,956 $2,248 $595 $2 $7,801 Change from prior
   year 29% 6% 2% N/M 19% EBT $1,383 $1,895 $23 $25 $3,326 Change from prior year 23% 5% (60%) N/M 3% Net income (loss) $2,682
   Change from prior year 8% Diluted EPS $1.62 Change from prior year 10% Diluted shares used 1,654 Estimated Total Share-Based
   In-Process Qualcomm Segments Compensation(2) R&D QSI(3) (GAAP) Revenues $- $- $7 $7,808 Change from prior year N/M 19%
   EBT $(394) $(14) $(200) $2,718 Change from prior year (6%) (40%) (14%) 1% Net income (loss) $(267) $(13) $(120) $2,282 Change
   from prior year (9%) (44%) (17%) 5% Diluted EPS $(0.16) $(0.01) $(0.07) $1.38 Change from prior year (14%) 0% (17%) 8% Diluted
   shares used 1,654 1,654 1,654 1,654 

Nine Months - Fiscal Year 2007 Qualcomm Reconciling Pro Segments QCT QTL QWI
   Items (1) Forma Revenues $3,856 $2,125 $583 $1 $6,565 EBT 1,123 1,803 58 250 3,234 Net income (loss) 2,494 Diluted EPS $1.47
   Diluted shares used 1,694 Estimated Total Share-Based In-Process Qualcomm Segments Compensation(2) Tax Items R&D QSI(3)
   (GAAP) Revenues $- $- $- $- $6,565 EBT (370) - (10) (176) 2,678 Net income (loss) (244) 33 (9) (103) 2,171 Diluted EPS $(0.14)
   $0.02 $(0.01) $(0.06) $1.28 Diluted shares used 1,694 1,694 1,694 1,694 1,694 (1) Reconciling items related to revenues consist
   primarily of other nonreportable segment revenues less intersegment eliminations. Reconciling items related to earnings before
   taxes consist primarily of certain investment income, research and development expenses and marketing expenses that are not
   allocated to the segments for management reporting purposes, nonreportable segment results and the elimination of intersegment
   profit. (2) Certain share-based compensation is included in operating expenses as part of employee-related costs but is not
   allocated to the Company's segments as such costs are not considered relevant by management in evaluating segment performance.
   (3) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions
   for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is
   computed by subtracting the tax provision for Qualcomm pro forma, the tax items column and the tax provisions related to estimated
   share-based compensation and in-process R&D from the tax provision for total Qualcomm (GAAP). (4) During the fourth quarter
   of fiscal 2007, the Company recorded a US$331 million tax benefit, or US$0.20 diluted earnings per share, related to tax expense
   recorded in prior years resulting from the completion of tax audits during the fourth fiscal quarter. The fiscal 2007 Qualcomm
   pro forma results excluded this tax benefit attributable to prior years. N/M - Not Meaningful N/A - Not Applicable Sums may
   not equal totals due to rounding. 

Conference Call

Qualcomm's third quarter fiscal 2008 earnings conference call will be broadcast live on July 24, 2008 beginning at 5:00 a.m. Pacific Daylight Time (PDT) on the Company's web site at: www.qualcomm.com. This conference call may contain forward-looking financial information. The conference call will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP, as well as the other material financial and statistical information to be discussed in the conference call, will be posted on the Company's Investor Relations web site at www.qualcomm.com immediately prior to commencement of the call. A taped audio replay will be available via telephone on July 24, 2008, beginning at approximately 6:00 a.m. PDT through August 23, 2008 at 9:00 p.m. PDT. To listen to the replay, U.S. callers may dial +1-800-642-1687 and international callers may dial +1-706-645-9291. U.S. and international callers should use reservation number 57610454. An audio replay of the conference call will be available on the Company's web site at www.qualcomm.com for two weeks following the live call.

Editor's Note: To view the web slides that accompany this earnings release and conference call, please go to the Qualcomm Investor Relations website at http://investor.qualcomm.com/results.cfm.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2008 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.

Note Regarding Use of Non-GAAP Financial Measures

The Company presents pro forma financial information that is used by management (i) to evaluate, assess and benchmark the Company's operating results on a consistent and comparable basis, (ii) to measure the performance and efficiency of the Company's ongoing core operating businesses, including the Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Wireless & Internet segments and (iii) to compare the performance and efficiency of these segments against each other and against competitors outside the Company. Pro forma measurements of the following financial data are used by the Company's management: revenues, R&D expenses, SG&A expenses, total operating expenses, operating income, net investment income, income before income taxes, effective tax rate, net income, diluted earnings per share, operating cash flow and free cash flow. Management is able to assess what it believes is a more meaningful and comparable set of financial performance measures for the Company and its business segments by using pro forma information. As a result, management compensation decisions and the review of executive compensation by the Compensation Committee of the Board of Directors focus primarily on pro forma financial measures applicable to the Company and its business segments.

Pro forma information used by management excludes the QSI segment, certain estimated share-based compensation, certain tax items related to prior years and acquired in-process R&D. The QSI segment is excluded because the Company expects to exit its strategic investments at various times, and the effects of fluctuations in the value of such investments are viewed by management as unrelated to the Company's operational performance. Estimated share-based compensation, other than amounts related to share-based awards granted under a bonus program that may result in the issuance of unrestricted shares of the Company's common stock, is excluded because management views the valuation of options and other share-based compensation as theoretical and unrelated to the Company's operational performance. Further, share-based compensation is affected by factors that are subject to change, including the Company's stock price, stock market volatility, expected option life, risk-free interest rates and expected dividend payouts in future years. Moreover, it is generally not an expense that requires or will require cash payment by the Company. Certain tax items related to prior years are excluded in order to provide a clearer understanding of the Company's ongoing tax rate and after tax earnings. Acquired in-process R&D is excluded because such expense is viewed by management as unrelated to the operating activities of the Company's ongoing core businesses.

The Company presents free cash flow, defined as net cash provided by operating activities less capital expenditures, to facilitate an understanding of the amount of cash flow generated that is available to grow its business and to create long-term shareholder value. The Company believes that this presentation is useful in evaluating its operating performance and financial strength. In addition, management uses this measure to evaluate the Company's performance, to value the Company and to compare its operating performance with other companies in the industry.

The non-GAAP pro forma financial information presented herein should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, "pro forma" is not a term defined by GAAP, and, as a result, the Company's measure of pro forma results might be different than similarly titled measures used by other companies. Reconciliations between total Qualcomm (GAAP) results and Qualcomm pro forma results and between total Qualcomm (GAAP) cash flow and Qualcomm pro forma cash flow are presented herein.

Note Regarding Forward-Looking Statements

In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to risks associated with: the rate of deployment of our technologies in wireless networks and of 3G wireless communications, equipment and services, including CDMA2000 1X, 1xEV-DO, WCDMA, HSPA and OFDMA both domestically and internationally; attacks on our business model, including results of current and future litigation and arbitration proceedings, as well as actions of governmental or quasi-governmental bodies, and the costs we incur in connection therewith, including potentially damaged relationships with customers and operators who may be impacted by the results of these proceedings; fluctuations in the demand for products, services or applications based on our technologies; our dependence on major customers and licensees; foreign currency fluctuations; strategic loans, investments and transactions we have or may pursue; our dependence on third-party manufacturers and suppliers; our ability to maintain and improve operational efficiencies and profitability; the development, deployment and commercial acceptance of the MediaFLO USA network and FLO(TM) technology; as well as the other risks detailed from time-to-time in our SEC reports.

(C) 2008 Qualcomm Incorporated. All rights reserved. Qualcomm is a registered trademark of Qualcomm Incorporated. MediaFLO and FLO are trademarks of Qualcomm Incorporated. CDMA2000 is a registered trademark of the Telecommunications Industry Association. All other trademarks are the property of their respective owners.

Qualcomm
   Incorporated CONSOLIDATED STATEMENTS OF OPERATIONS This schedule is to assist the reader in reconciling from Qualcomm Pro
   Forma results to Total Qualcomm (GAAP) results (In millions, except per share data) (Unaudited) Three Months Ended June 29,
   2008 Estimated Total Qualcomm Pro Share-Based In-Process Qualcomm Forma Compensation R&D QSI (GAAP) Revenues: Equipment
   and services $1,863 $- $- $4 $1,867 Licensing and royalty fees 895 - - - 895 Total revenues 2,758 - - 4 2,762 Operating expenses:
   Cost of equipment and services revenues 846 10 - 33 889 Research and development 495 64 13 24 596 Selling, general and administrative
   357 65 - 31 453 Total operating expenses 1,698 139 13 88 1,938 Operating income (loss) 1,060 (139) (13) (84) 824 Investment
   income, net 56(a) - - 2(b) 58 Income (loss) before income taxes 1,116 (139) (13) (82) 882 Income tax (expense) benefit (201)(c)
   45 - 22(d) (134)(c) Net income (loss) $915 $(94) $(13) $(60) $748 Earnings (loss) per common share: Diluted $0.55 $(0.06)
   $(0.01) $(0.04) $0.45 Shares used in per share calculations: Diluted 1,654 1,654 1,654 1,654 1,654 Supplemental Financial
   Data: Operating Cash Flow $1,020 $(209)(f) $(13) $(59) $739 Operating Cash Flow as a % of Revenues 37% N/M 27% Free Cash Flow(e)
   $844 $(209)(f) $(13) $(438) $184 Free Cash Flow as a % of Revenues 31% N/M 7% (a) Included US$105 million in interest and
   dividend income related to cash, cash equivalents and marketable securities, which were not part of the Company's strategic
   investment portfolio, and US$24 million in net realized gains on investments, partially offset by US$71 million in other-than-temporary
   losses on investments and US$2 million in interest expense. (b) Included US$15 million in net realized gains on investments
   and US$3 million interest and dividend income, partially offset by US$12 million in other-than-temporary losses on investments,
   US$2 million in equity in losses of investees and US$2 million in interest expense. (c) The third quarter of fiscal 2008 effective
   tax rates were approximately 15% for total Qualcomm (GAAP) and approximately 18% for Qualcomm pro forma. (d) At fiscal year-end,
   the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed
   in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the
   tax provision for Qualcomm pro forma, the tax items column and the tax provisions related to estimated share-based compensation
   and in-process R&D from the tax provision for total Qualcomm (GAAP). (e) Free Cash Flow is calculated as net cash provided
   by operating activities less capital expenditures. Reconciliation of these amounts is included in the Reconciliation of Pro
   Forma Free Cash Flows to Total Qualcomm (GAAP) net cash provided by operating activities and other supplemental disclosures
   for the three months ended June 29, 2008, included herein. (f) Incremental tax benefits from stock options exercised during
   the period. 

Qualcomm Incorporated CONSOLIDATED STATEMENTS OF OPERATIONS This schedule is to assist the reader in
   reconciling from Qualcomm Pro Forma results to Total Qualcomm (GAAP) results (In millions, except per share data) (Unaudited)
   Nine Months Ended June 29, 2008 Estimated Total Qualcomm Pro Share-Based In-Process Qualcomm Forma Compensation(a) R&D
   QSI (GAAP) Revenues: Equipment and services $5,288 $- $- $7 $5,295 Licensing and royalty fees 2,513 - - - 2,513 Total revenues
   7,801 - - 7 7,808 Operating expenses: Cost of equipment and services revenues 2,379 29 - 85 2,493 Research and development
   1,397 182 14 67 1,660 Selling, general and administrative 1,000 183 - 78 1,261 Total operating expenses 4,776 394 14 230 5,414
   Operating income (loss) 3,025 (394) (14) (223) 2,394 Investment income, net 301(b) - - 23(c) 324 Income (loss) before income
   taxes 3,326 (394) (14) (200) 2,718 Income tax (expense) benefit (644)(d) 127 1 80(e) (436)(d) Net income (loss)$2,682 $(267)
   $(13) $(120) $2,282 Earnings (loss) per common share: Diluted $1.62 $(0.16) $(0.01) $(0.07) $1.38 Shares used in per share
   calculations: Diluted 1,654 1,654 1,654 1,654 1,654 Supplemental Financial Data: Operating Cash Flow $3,090 $(310)(g) $(14)
   $(199) $2,567 Operating Cash Flow as a % of Revenue 40% N/M 33% Free Cash Flow(f) $2,722 $(310)(g) $(14) $(814) $1,584 Free
   Cash Flow as a % of Revenue 35% N/M 20% (a) Estimated share-based compensation presented above and excluded from pro forma
   results did not include US$1 million, net of tax, related to share-based awards granted under a bonus program. (b) Included
   US$374 million in interest and dividend income related to cash, cash equivalents and marketable securities, which were not
   part of the Company's strategic investment portfolio, US$108 million in net realized gains on investments and US$6 million
   in gains on derivative instruments from put options related to our share repurchase program, partially offset by US$175 million
   in other- than-temporary losses on investments and US$12 million in interest expense. (c) Included US$50 million in net realized
   gains on investments, US$4 million in interest and dividend income and US$1 million in equity in earnings of investees, partially
   offset by US$27 million in other-than-temporary losses on investments and US$5 million in interest expense. (d) The effective
   tax rates for the nine months ended June 29, 2008 were approximately 16% for total Qualcomm (GAAP) and approximately 19% for
   Qualcomm pro forma. (e) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals
   the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the
   QSI operating segment is computed by subtracting the tax provision for Qualcomm pro forma, the tax items column and the tax
   provisions related to estimated share-based compensation and in-process R&D from the tax provision for total Qualcomm
   (GAAP). (f) Free Cash Flow is calculated as net cash provided by operating activities less capital expenditures. Reconciliation
   of these amounts is included in the Reconciliation of Pro Forma Free Cash Flows to Total Qualcomm (GAAP) net cash provided
   by operating activities and other supplemental disclosures for the nine months ended June 29, 2008, included herein. (g) Incremental
   tax benefits from stock options exercised during the period. 

Qualcomm Incorporated Reconciliation of Pro Forma
   Free Cash Flows to Total Qualcomm (GAAP) net cash provided by operating activities and other supplemental disclosures (In
   millions) (Unaudited) Three Months Ended June 29, 2008 Estimated Total Qualcomm Pro Share-Based In-Process Qualcomm Forma
   Compensation R&D QSI (GAAP) Net cash provided (used) by operating activities $1,020 $(209)(a) $(13) $(59) $739 Less:capital
   expenditures (176) - - (379) (555) Free cash flow $844 $(209) $(13) $(438) $184 Other supplemental cash disclosures: Cash
   transfers from QSI (1) $30 $- $- $(30) $- Cash transfers to QSI (2) (446) - - 446 - Net cash transfers $(416) $- $- $416 $-
   Nine Months Ended June 29, 2008 Estimated Total Qualcomm Pro Share-Based In-Process Qualcomm Forma Compensation R&D QSI
   (GAAP) Net cash provided (used) by operating activities $3,090 $(310)(a) $(14) $(199) $2,567 Less:capital expenditures(3)
   (368) - - (615) (983) Free cash flow $2,722 $(310) $(14) $(814) $1,584 Other supplemental cash disclosures: Cash transfers
   from QSI (1) $59 $- $- $(59) $- Cash transfers to QSI (2) (842) - - 842 - Net cash transfers $(783) $- $- $783 $- (1) Cash
   from sale of equity securities. (2) Funding for strategic debt and equity investments, capital expenditures and other QSI
   operating expenses. (3) Upon receipt of licenses from the FCC for additional 700 MHz spectrum for use in our MediaFLO USA
   business, the deposit made in the second quarter of fiscal 2008 of US$195 million was reclassified from Qualcomm pro forma
   capital expenditures to QSI capital expenditures. The total license fee included in QSI capital expenditures for fiscal 2008
   was US$555 million. Three Months Ended July 1, 2007 Estimated Total Qualcomm Pro Share-Based Qualcomm Forma Compensation QSI
   (GAAP) Net cash provided (used) by operating activities $1,122 $(80)(a) $(54) $988 Less: capital expenditures (145) - (12)
   (157) Free cash flow $977 $(80) $(66) $831 Nine Months Ended July 1, 2007 Estimated Total Qualcomm Pro Share-Based In-Process
   Qualcomm Forma Compensation R&D QSI (GAAP) Net cash provided (used) by operating activities $3,116 $(199)(a) $(10) $(139)
   $2,768 Less: capital expenditures (506) - - (65) (571) Free cash flow $2,610 $(199) $(10) $(204) $2,197 (a) Incremental tax
   benefits from stock options exercised during the period. 

Qualcomm Incorporated CONDENSED CONSOLIDATED BALANCE SHEETS
   (In millions, except per share data) (Unaudited) ASSETS June 29, September 30, 2008 2007 Current assets: Cash and cash equivalents
   $2,970 $2,411 Marketable securities 3,644 4,170 Accounts receivable, net 917 715 Inventories 618 469 Deferred tax assets 358
   435 Collateral held under securities lending 326 421 Other current assets 228 200 Total current assets 9,061 8,821 Marketable
   securities 4,567 5,234 Property, plant and equipment, net 1,912 1,788 Goodwill 1,520 1,325 Deferred tax assets 870 318 Other
   assets 1,667 1,009 Total assets $19,597 $18,495 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable
   $653 $635 Payroll and other benefits related liabilities 356 311 Unearned revenues 186 218 Income taxes payable 15 119 Obligations
   under securities lending 326 421 Other current liabilities 575 554 Total current liabilities 2,111 2,258 Unearned revenues
   124 142 Income taxes payable 222 - Other liabilities 314 260 Total liabilities 2,771 2,660 Stockholders' equity: Preferred
   stock, $0.0001 par value; issuable in series; 8 shares authorized; none outstanding at June 29, 2008 and September 30, 2007
   - - Common stock, $0.0001 par value; 6,000 shares authorized; 1,640 and 1,646 shares issued and outstanding at June 29, 2008
   and September 30, 2007, respectively - - Paid-in capital 6,783 7,057 Retained earnings 10,104 8,541 Accumulated other comprehensive
   (loss) income (61) 237 Total stockholders' equity 16,826 15,835 Total liabilities and stockholders' equity $19,597 $18,495
   

Qualcomm Incorporated CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited)
   Three Months Ended Nine Months Ended June 29, July 1, June 29, July 1, 2008 2007 2008 2007 Revenues: Equipment and services
   $1,867 $1,484 $5,295 $4,196 Licensing and royalty fees 895 841 2,513 2,369 Total revenues 2,762 2,325 7,808 6,565 Operating
   expenses: Cost of equipment and services revenues 889 688 2,493 1,956 Research and development 596 454 1,660 1,348 Selling,
   general and administrative 453 401 1,261 1,155 Total operating expenses 1,938 1,543 5,414 4,459 Operating income 824 782 2,394
   2,106 Investment income, net 58 190 324 572 Income before income taxes 882 972 2,718 2,678 Income tax expense (134) (174)
   (436) (507) Net income $748 $798 $2,282 $2,171 Basic earnings per common share $0.46 $0.48 $1.40 $1.31 Diluted earnings per
   common share $0.45 $0.47 $1.38 $1.28 Shares used in per share calculations: Basic 1,626 1,670 1,626 1,661 Diluted 1,654 1,704
   1,654 1,694 Dividends per share paid $0.16 $0.14 $0.44 $0.38 Dividends per share announced $0.16 $0.14 $0.44 $0.38 

Qualcomm
   Incorporated CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Nine Months Ended
   June 29, July 1, June 29, July 1, 2008 2007 2008 2007 Operating Activities: Net income $748 $798 $2,282 $2,171 Adjustments
   to reconcile net income to net cash provided by operating activities: Depreciation and amortization 117 99 336 283 Non-cash
   income tax expense 66 136 148 365 Non-cash portion of share-based compensation expense 138 114 393 371 Incremental tax benefits
   from stock options exercised (209) (80) (310) (199) Net realized gains on marketable securities and other investments (39)
   (53) (158) (173) Other-than-temporary losses on marketable securities and other investments 83 8 202 11 Other items, net 11
   7 1 5 Changes in assets and liabilities, net of effects of acquisitions: Accounts receivable, net (186) (45) (178) (62) Inventories
   (7) (49) (142) (147) Other assets (7) 10 35 (137) Trade accounts payable (24) (7) (4) 127 Payroll, benefits and other liabilities
   78 68 12 69 Unearned revenues (30) (18) (50) 84 Net cash provided by operating activities 739 988 2,567 2,768 Investing Activities:
   Capital expenditures (555) (157) (983) (571) Purchases of available-for-sale securities (1,984) (2,340) (4,944) (5,921) Proceeds
   from sale of available- for-sale securities 1,559 1,909 5,548 6,254 Other investments and acquisitions, net of cash acquired
   (8) (3) (283) (230) Change in collateral held under securities lending 8 (153) 95 (153) Other items, net 4 12 30 13 Net cash
   used by investing activities (976) (732) (537) (608) Financing Activities: Proceeds from issuance of common stock 464 220
   700 474 Incremental tax benefits from stock options exercised 209 80 310 199 Dividends paid (261) (234) (716) (632) Repurchase
   and retirement of common stock - (129) (1,670) (264) Proceeds from put options - 17 - 17 Change in obligations under securities
   lending (8) 153 (95) 153 Net cash provided (used) by financing activities 404 107 (1,471) (53) Effect of exchange rate changes
   on cash - - - 2 Net increase in cash and cash equivalents 167 363 559 2,109 Cash and cash equivalents at beginning of period
   2,803 3,353 2,411 1,607 Cash and cash equivalents at end of period $2,970 $3,716 $2,970 $3,716 Qualcomm Contact: John Gilbert
   Vice President of Investor and Industry Analyst Relations +1-858-658-4813 (ph) +1-858-651-9303 (fax) e-mail: ir@qualcomm.com
   

Web site: http://www.qualcomm.com

John Gilbert, Vice President of Investor and Industry Analyst Relations,
   Qualcomm Incorporated, +1-858-658-4813 (ph), +1-858-651-9303 (fax), ir@qualcomm.com 

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