QUALCOMM Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM

RESULTS EXCLUDING QSI TO TOTAL QUALCOMM RESULTS

(In thousands, except per share data)

(Unaudited)

Three Months Ended September 28, 2003

Excluding QSI QSI Total QUALCOMM

Revenues:

Equipment and services $617,792 $38,449 $656,241

Licensing and royalty fees 252,575 -- 252,575

870,367 38,449 908,816

Operating expenses:

Cost of equipment and services

revenues 289,358 43,858 333,216

Research and development 143,297 -- 143,297

Selling, general and

administrative 113,297 20,409 133,706

Amortization of other acquisition-

related intangible assets 1,951 750 2,701

Other -- (319) (319)

Total operating expenses 547,903 64,698 612,601

Operating income (loss) 322,464 (26,249) 296,215

Interest expense (262) (9,924) (10,186)

Investment income (expense), net 30,174 (a) (5,672)(d) 24,502

Income (loss) before income taxes 352,376 (41,845)(b) 310,531

Income tax (expense) benefit (116,284)(c) 97,155 (19,129)(c)

Net income $236,092 $55,310 $291,402

Net earnings per common share:

Diluted $0.29 (e) $0.07 (e) $0.35(e)

Shares used in per share

calculations:

Diluted 821,330 821,330 821,330

(a) Includes $29 million in interest income related to cash, cash

equivalents and marketable debt securities, which are not part of

the Company's strategic investment portfolio.

(b) Includes $28 million loss, net of minority interest, of Vesper

Holdings from June 1, 2003 through August 31, 2003 due to the

Company's practice of consolidating foreign subsidiaries one month

in arrears.

(c) The fiscal year 2003 effective tax rate for operations excluding QSI

and total QUALCOMM are 33% and approximately 36%, respectively. The

change in the estimated 2003 effective tax rate for total QUALCOMM

from 45% used in the third quarter of fiscal 2003 results in a 6%

effective tax rate in the fourth quarter of fiscal 2003.

(d) Includes $27 million in other-than-temporary losses on investments

and $16 million equity in losses of investees, partially offset by

$32 million in net realized gains on investments and $6 million in

interest income.

(e) The sum of the earnings per share amounts may not equal total

earnings per share due to rounding.

QUALCOMM Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING FROM

RESULTS EXCLUDING QSI TO TOTAL QUALCOMM RESULTS

(In thousands, except per share data)

(Unaudited)

Twelve Months Ended September 28, 2003

Excluding QSI QSI Total QUALCOMM

Revenues:

Equipment and services $2,861,500 $124,260 $2,985,760

Licensing and royalty fees 984,876 -- 984,876

3,846,376 124,260 3,970,636

Operating expenses:

Cost of equipment and

services revenues 1,268,112 161,935 1,430,047

Research and development 517,737 5,530 523,267

Selling, general and

administrative 446,347 88,568 534,915

Amortization of other

acquisition-related

intangible assets 7,839 750 8,589

Asset impairment and related

charges -- 194,258 194,258

Other -- (30,675) (30,675)

Total operating expenses 2,240,035 420,366 2,660,401

Operating income (loss) 1,606,341 (296,106) 1,310,235

Interest expense (2,236) (28,473) (30,709)

Investment income (expense),

net 129,276 (a) (123,655)(d) 5,621

Income (loss) before income

taxes 1,733,381 (448,234)(b) 1,285,147

Income tax (expense) benefit (572,016)(c) 114,310 (457,706)(c)

Net income (loss) $1,161,365 $(333,924) $827,441

Net earnings (loss) per common

share:

Diluted $1.42 (e) $(0.41)(e) $1.01(e)

Shares used in per share

calculations:

Diluted 817,755 817,755 817,755

(a) Includes $113 million in interest income related to cash, cash

equivalents and marketable debt securities, which are not part of

the Company's strategic investment portfolio.

(b) Includes $238 million loss, net of minority interest, of Vesper

Holdings from September 1, 2002 through August 31, 2003 due to the

Company's practice of consolidating foreign subsidiaries one month

in arrears.

(c) The fiscal year 2003 effective tax rate for operations excluding QSI

and total QUALCOMM are 33% and approximately 36%, respectively.

(d) Includes $138 million in other-than-temporary losses on investments

and $126 million equity in losses of investees, partially offset by

$56 million in net realized gains on investments, $51 million in

interest income and $37 million in minority interest in loss of

consolidated subsidiaries.

(e) The sum of the earnings per share amounts may not equal total

earnings per share due to rounding.

QUALCOMM Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE SECURITIES

THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING CASH FLOWS FROM CASH

CASH EQUIVALENTS AND MARKETABLE SECURITIES EXCLUDING QSI TO TOTAL QUALCOMM

CASH FLOWS

(In thousands)

(Unaudited)

Three Months Ended September 28, 2003

Excluding Total

QSI QSI QUALCOMM

Earnings (loss) before

taxes, depreciation,

amortization and other

adjustments (1) $397,950 $(12,417) $385,533

Working capital changes

and taxes paid (2) 126,598 15,327 141,925

Net cash provided by

operating activities 524,548 2,910 527,458

Capital expenditures (44,601) (15) (44,616)

Net cash provided by

operating activities

less capital

expenditures 479,947 2,895 482,842

Net additional share

capital 58,797 -- 58,797

Dividends paid (55,769) -- (55,769)

Net collections of

finance receivables 1,252 23 1,275

Other investments (3,501) (155) (3,656)

Other items (27) (5,371) (5,398)

Changes in fair value

and other changes to

marketable securities (13,626) 25,411 11,785

Marketable securities

pending settlement

(receipt) payment (84,828) 3,109 (81,719)

Transfer from QSI (3) 48,200 (48,200) --

Transfer to QSI (4) (12,933) 12,933 --

Net increase (decrease)

in cash, cash

equivalents and

marketable securities (5) $417,512 $(9,355) $408,157

(1) Reconciliation to GAAP:

Net income $236,092 $55,310 $291,402

Non-cash adjustments(a) 115,999 (35,252) 80,747

Net realized gains on

marketable securities

and other investments (936) (32,475) (33,411)

Plus: Taxes paid 46,795 -- 46,795

Earnings before taxes,

depreciation,

amortization and

other adjustments $397,950 $(12,417) $385,533

(2) Reconciliation to GAAP:

Increase in cash

resulting from changes

in working capital $173,393 $15,327 $188,720

Minus: Taxes paid (46,795) -- (46,795)

Working capital changes

and taxes paid $126,598 $15,327 $141,925

(3) Cash from loan payments

and sale of equity

securities.

(4) Funding for strategic debt

and equity investments,

operations of Vesper and

other QSI operating expenses.

(5) Reconciliation to GAAP cash

flow statement:

Net increase (decrease) in

cash and cash equivalents

(GAAP) $250,792 $(523) $250,269

Plus: Net purchase

(proceeds) of

marketable

securities 265,174 (37,352) 227,822

Plus: Net (decrease)

increase in fair value

and other changes to

marketable securities (13,626) 25,411 11,785

Plus: Net increase in

marketable securities

pending settlement

(receipt) payment (84,828) 3,109 (81,719)

Net increase (decrease)

in cash, cash equivalents

and marketable

securities $417,512 $(9,355) $408,157

(a) See detail following

the twelve month cash

flow schedule.

QUALCOMM Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE

SECURITIES

THIS SCHEDULE IS TO ASSIST THE READER IN RECONCILING CASH

FLOWS FROM CASH,

CASH EQUIVALENTS AND MARKETABLE SECURITIES EXCLUDING QSI TO

TOTAL QUALCOMM CASH FLOWS

(In thousands)

(Unaudited)

Twelve Months Ended September 28, 2003

Excluding Total

QSI QSI QUALCOMM

Earnings (loss) before taxes,

depreciation, amortization and other

adjustments (1) $1,873,151 $(29,247) $1,843,904

Working capital changes and taxes

paid (2) (101,039) 39,019 (62,020)

Net cash provided by operating

activities 1,772,112 9,772 1,781,884

Capital expenditures (202,116) (28,506) (230,622)

Net cash provided (used) by operating

activities less capital expenditures 1,569,996 (18,734) 1,551,262

Net additional share capital 191,473 -- 191,473

Repurchases of common stock (158,488) -- (158,488)

Dividends paid (134,776) -- (134,776)

Net collections of finance

receivables 8,097 654,979 663,076

Other investments (3,501) (33,955) (37,456)

Other items (2,655) (36,762) (39,417)

Changes in fair value and other

changes to marketable securities 28,497 71,562 100,059

Marketable securities pending

settlement payment (receipt) 42,939 (6,433) 36,506

Transfer from QSI (3) 795,865 (795,865) --

Transfer to QSI (4) (162,263) 162,263 --

Net increase (decrease) in cash, cash

equivalents and marketable

securities (5) $2,175,184 $(2,945) $2,172,239

(1) Reconciliation to GAAP:

Net income (loss) $1,161,365 $(333,924) $827,441

Non-cash adjustments (b) 603,991 360,548 964,539

Net realized gains on

marketable securities and

other investments (16,947) (55,871) (72,818)

Plus: Taxes paid 124,742 -- 124,742

Earnings before taxes,

depreciation, amortization

and other adjustments $1,873,151 $(29,247) $1,843,904

(2) Reconciliation to GAAP:

Increase in cash resulting

from changes in working

capital $23,703 $39,019 $62,722

Minus: Taxes paid (124,742) -- (124,742)

Working capital changes and

taxes paid $(101,039) $39,019 $(62,020)

(3) Cash from loan payments and sale

of equity securities.

(4) Funding for strategic debt and

equity investments, operations of

Vesper and other QSI operating

expenses.

(5) Reconciliation to GAAP cash flow

statement:

Net increase (decrease) in

cash and cash equivalents

(GAAP) $652,980 $(14,590) $638,390

Plus: Net purchase

(proceeds) of marketable

securities 1,452,853 (53,484) 1,399,369

Plus: Net increase in fair

value and other changes to

marketable securities 28,497 71,562 100,059

Plus: Net increase in

marketable securities

pending settlement payment

(receipt) 42,939 (6,433) 36,506

Less: Proceeds from trading

securities included in

working capital changes (2,085) -- (2,085)

Net increase (decrease) in

cash, cash equivalents and

marketable securities $2,175,184 $(2,945) $2,172,239

(b) See detail below.

QUALCOMM Incorporated

SUPPLEMENTAL DETAIL TO THE

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND MARKETABLE

SECURITIES

(In thousands)

(Unaudited)

Three Months Ended September 28, 2003

Excluding Total

QSI QSI QUALCOMM

(a) Non-cash adjustments are

comprised of:

Depreciation and amortization $38,688 $8,437 $47,125

Change in fair values of

derivative investments -- 1,940 1,940

Other-than-temporary losses on

marketable securities and

other investments -- 26,801 26,801

Minority interest in loss of

consolidated subsidiaries -- (154) (154)

Equity in losses of investees 103 15,648 15,751

Non-cash income tax expense

(benefit) 69,489 (97,155) (27,666)

Other non-cash charges and

credits 7,719 9,231 16,950

Total non-cash adjustments $115,999 $(35,252) 80,747

Twelve Months Ended September 28, 2003

Excluding Total

QSI QSI QUALCOMM

(b) Non-cash adjustments are

comprised of:

Depreciation and amortization $139,904 $39,790 $179,694

Asset impairment and related

charges -- 194,258 194,258

Change in fair values of

derivative investments -- 3,201 3,201

Other-than-temporary losses on

marketable securities and

other investments 349 138,107 138,456

Minority interest in loss of

consolidated subsidiaries -- (36,949) (36,949)

Equity in losses of investees 148 125,867 126,015

Non-cash income tax expense

(benefit) 447,274 (114,310) 332,964

Other non-cash charges and

credits 16,316 10,584 26,900

Total non-cash adjustments $603,991 $360,548 964,539

QUALCOMM Incorporated

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

ASSETS

QUALCOMM

Excluding QSI

QSI (a)(b) QUALCOMM QUALCOMM

Sept. 28, Sept. 28, Sept. 28, Sept. 29,

2003 2003 2003 2002

Current assets:

Cash and cash

equivalents $2,036,616 $8,478 $2,045,094 $1,406,704

Marketable securities 2,476,315 39,688 2,516,003 1,411,178

Accounts receivable, net 455,281 28,512 483,793 536,950

Finance receivables, net 5,436 359 5,795 388,396

Inventories, net 102,772 7,579 110,351 88,094

Deferred tax assets (b) 611,536 -- 611,536 122

Other current assets 162,960 13,232 176,192 109,322

Total current

assets 5,850,916 97,848 5,948,764 3,940,766

Marketable securities 684,410 126,244 810,654 381,630

Finance receivables, net 536 181,086 181,622 442,934

Other investments 8,075 120,576 128,651 276,414

Property, plant and

equipment, net 518,881 103,384 622,265 686,283

Goodwill, net 344,599 1,865 346,464 344,803

Deferred tax assets (b) 406,746 -- 406,746 7,493

Other assets 169,118 208,152 377,270 425,725

Total assets $7,983,281 $839,155 $8,822,436 $6,506,048

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Trade accounts payable $132,151 $62,914 $195,065 $209,418

Payroll and other benefits

related liabilities 132,683 8,317 141,000 126,005

Unearned revenue 167,840 6,431 174,271 183,482

Current portion of long-

term debt -- 102,625 102,625 19,355

Other current liabilities 180,200 15,041 195,241 136,726

Total current

liabilities 612,874 195,328 808,202 674,986

Unearned revenue 236,667 65 236,732 259,995

Long-term debt -- 123,302 123,302 94,288

Other liabilities 55,578 -- 55,578 40,283

Total liabilities 905,119 318,695 1,223,814 1,069,552

Minority interest in

consolidated subsidiaries 50 -- 50 44,540

Stockholders' equity:

Preferred stock, $0.0001

par value -- -- -- --

Common stock, $0.0001 par

value 81 -- 81 79

Paid-in capital 6,324,971 -- 6,324,971 4,918,202

Retained earnings 1,297,289 -- 1,297,289 604,624

Accumulated other

comprehensive loss (31,843) 8,074 (23,769) (130,949)

Total stockholders'

equity 7,590,498 8,074 7,598,572 5,391,956

Total liabilities

and stockholders'

equity $8,495,667 $326,769 $8,822,436 $6,506,048

(a) Includes the consolidated Vesper Holdings balance sheet at

August 31, 2003. The Company consolidates foreign subsidiaries one

month in arrears.

(b) Deferred tax assets and liabilities are not allocated to the

Company's segments. A valuation allowance was provided on all net

deferred tax assets of investments that are consolidated by QSI,

including Vesper, because of uncertainty regarding their

realization.

QUALCOMM Incorporated

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended Twelve Months Ended

Sept. 28, Sept. 29, Sept. 28, Sept. 29,

2003 2002 2003 2002

Revenues:

Equipment and services $656,241 $636,179 $2,985,760 $2,204,835

Licensing and royalty fees 252,575 237,707 984,876 834,725

908,816 873,886 3,970,636 3,039,560

Operating expenses:

Cost of equipment and

services revenues 333,216 312,087 1,430,047 1,137,360

Research and development 143,297 109,969 523,267 451,678

Selling, general and

administrative 133,706 131,847 534,915 508,644

Amortization of goodwill

and other

acquisition-related

intangible assets 2,701 66,759 8,589 259,196

Asset impairment and related

charges -- 459 194,258 459

Other (319) -- (30,675) 8,955

Total operating expenses 612,601 621,121 2,660,401 2,366,292

Operating income 296,215 252,765 1,310,235 673,268

Interest expense (10,186) (8,374) (30,709) (25,731)

Investment income (expense),

net 24,502 (15,314) 5,621 (186,412)

Income before income taxes 310,531 229,077 1,285,147 461,125

Income tax expense (19,129) (38,795) (457,706) (101,448)

Net income $291,402 $190,282 $827,441 $359,677

Net earnings per common share:

Basic $0.37 $0.24 $1.05 $0.47

Diluted $0.35 $0.23 $1.01 $0.44

Shares used in per share

calculations:

Basic 795,525 777,560 789,586 770,887

Diluted 821,330 809,810 817,755 809,329

Dividends declared per share $0.07 $-- $0.17 $--