Upaid Dismisses All Patent Claims Against QUALCOMM

SAN DIEGO — QUALCOMM Incorporated (Nasdaq: QCOM) today announced that Upaid Systems, Ltd. has agreed to dismiss with prejudice all patent-related claims asserted against QUALCOMM in the litigation brought by Upaid in the Eastern District of Texas, Marshall Division for infringement of U.S. Patents Nos. 6,320,947 and 6,714,632, relating to pre-paid and pre-authorized communication services and transactions. In July 2005, Upaid filed suit against QUALCOMM and Verizon Wireless alleging infringement of the patents.

Based on facts discovered during the litigation, Upaid has agreed to dismiss its suit against QUALCOMM, and the two companies have entered into a complete settlement of the litigation. Under the settlement, QUALCOMM will receive a royalty-free, worldwide license to the patents in suit and any related patents, and also has obtained on behalf of its customers, including both handset manufacturers and service providers, a covenant from Upaid not to sue on the licensed patents for the use of the BREW® system developed by QUALCOMM or any other QUALCOMM data services.

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