Tax Treatment of QUALCOMM Dividends in 2003

Tax Treatment of QUALCOMM Dividends in 2003San Diego -- January 29, 2004 -- Distributions made during QUALCOMM's fiscal year ended September 28, 2003 (i.e., the distributions made on March 31, 2003, June 27, 2003, and September 26, 2003) will not be taxable dividends to stockholders. Instead, the distributions will be a tax-free return of each stockholder's investment (in tax terms, your "basis") in QUALCOMM stock. Distributions in excess of a stockholder's adjusted tax basis will be treated as capital gain.

The distribution made to stockholders on December 26, 2003 is expected to constitute a taxable dividend. However, the Company cannot definitively determine the tax treatment of this distribution until the completion of its fiscal year ending September 26, 2004. After that time, the Company will determine whether it will realize current earnings and profits in the fiscal year for U.S. federal income tax purposes. Such distributions are treated as taxable dividends. You may be required to amend your 2003 income tax return if the actual characterization of the December 26, 2003 distribution is different from what you reported.

No later than January 31, 2004, Computershare Investor Services, the Company's transfer agent, will mail to QUALCOMM's registered stockholders (who hold stock in certificate form) an IRS Form 1099-DIV reflecting the portion of the distribution that is a qualified dividend (Box 1a and 1b) and the portion that is a non-taxable distribution (Box 3). If you hold your shares in street name (through a bank or broker) and your dividend was deposited into your brokerage account, you will receive a Form 1099-DIV from that institution.

Each stockholder is urged to consult with his or her own tax advisor to determine the basis in their QUALCOMM stock and the tax consequences of the distribution, including any state, local or foreign tax considerations. Please visit QUALCOMM's website at for additional tax information.

2003 Dividend History for QUALCOMM Incorporated

02/11/03 03/12/03 03/14/03 03/31/03 $0.05 per share non-taxable
05/01/03 05/28/03 05/30/03 06/27/03 $0.05 per share non-taxable
07/16/03 08/27/03 08/29/03 09/26/03 $0.07 per share non-taxable
10/08/03 11/25/03 11/28/03 12/26/03 $0.07 per share taxable qualified dividend

QUALCOMM Contacts:
Investor Relations
Phone: 1-(858) 658-4813