Microsoft and QUALCOMM to Revolutionize the Next Generation of Smartphones

Collaboration integrates support for Windows Mobile operating system on QUALCOMM chipsets.

REDMOND, Wash., and SAN DIEGO — May 4, 2006 — QUALCOMM Incorporated and Microsoft Corp. today jointly announced a collaboration to enable the porting of the Microsoft® Windows Mobile® operating system to QUALCOMM’s Mobile Station Modem (MSM) chipsets. The companies’ collaboration will enable device manufacturers to develop affordable, feature-rich and attractive Windows Mobile-powered phones with MSM chipsets while shortening their product development times. Support for the Windows Mobile platform on QUALCOMM’s highly integrated MSM solutions also gives users extended battery life while running a wide variety of business and entertainment applications, such as Microsoft Office Mobile and Windows Media® Player Mobile, along with third-party offerings.

“Having support for Windows Mobile on QUALCOMM’s MSM chipsets will bring a familiar software experience to the next generation of smaller, lighter phones with more appealing form factors,” said Dr. Sanjay K. Jha, president of QUALCOMM CDMA Technologies. “Our customers will be able to more quickly design cost-effective and innovative devices that harness the power of our Convergence Platform dual-processor solutions.”

“We know that mobile operators are eager to attract and retain subscribers with an affordable portfolio of Windows Mobile-powered devices. More and more of their customers want capabilities such as mobile e-mail and Office productivity programs in a familiar and easy-to-use software experience,” said Pieter Knook, senior vice president of the Mobile and Embedded Devices Division and Communications Sector Business at Microsoft. “QUALCOMM’s innovative hardware platform coupled with our versatile software experience does just that. It helps device-makers and mobile operators sell a broader range of mobile devices that generate increased revenue.”

Microsoft and QUALCOMM are fully integrating and testing support for the Windows Mobile operating system with Convergence Platform 7XXX-series MSM chipsets from QUALCOMM, which feature a dual-core architecture with an integrated ARM11 applications processor and ARM9 modem processor for superior performance. The testing and integration speeds time to market by enabling handset manufacturers to more easily develop Windows Mobile-powered devices featuring the Convergence Platform MSM chipsets by removing some custom development work that would otherwise be required. In addition, device-makers can take advantage of the CDMA2000 1XEV-DO and UMTS modem features as well as the hardware-accelerated multimedia capabilities, multimegapixel camera support, 3-D graphics and Assisted-GPS engines from the Launchpad suite of technologies integrated with Convergence Platform MSM chipsets.

QUALCOMM is expected to begin offering support for Windows Mobile 5.0 on Convergence Platform MSM chipsets in the second half of 2006. In addition, Microsoft will incorporate a new Board Support Package and Radio Interface Layer for QUALCOMM’s Convergence Platform solutions into future distributions of the Windows Mobile platform. Phones leveraging MSM solutions supporting the Windows Mobile platform are forecasted to be available in 2007.

About QUALCOMM

QUALCOMM Incorporated (Nasdaq “QCOM”)(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 2005 FORTUNE 500 company traded on The Nasdaq Stock Market under the ticker symbol QCOM.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company’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 the Company serves, as well as the other risks detailed from time to time in the Company’s SEC reports, including the report on Form 10-K for the year ended September 25, 2005, and most recent Form 10-Q.

Microsoft, Windows Mobile and Windows Media are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

QUALCOMM is a registered trademark of QUALCOMM Incorporated. Launchpad, Mobile Station Modem and MSM are trademarks of QUALCOMM Incorporated.

ARM9 and ARM11 are registered trademarks of ARM Limited.

CDMA2000 is a registered trademark of the Telecommunications Industry Association (TIA USA).

The names of actual companies and products mentioned herein may be the trademarks of their respective owners. All other trademarks are the property of their respective owners.

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Waggener Edstrom Worldwide

Rapid Response Team

Microsoft Corp.

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