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 March 30, 2003
 -----------------------------------
 
  Excluding QSI QSI Total QUALCOMM
 ------------ --- ------------
 Revenues:
 Equipment and services $763,217 $26,265 $789,482
 Licensing and royalty fees 253,561 -- 253,561
 ---------- ---------- ----------
 1,016,778 26,265 1,043,043
 ---------- ---------- ----------
 Operating expenses:
 Cost of equipment and
 services revenues 341,100 40,828 381,928
 Research and development 129,757 2,044 131,801
 Selling, general and
 administrative 116,954 18,770 135,724
 Amortization of other
 acquisition-related
 intangible assets 1,965 -- 1,965
 Asset impairment charges -- 160,145  160,145
 ---------- ---------- ----------
 Total operating expenses 589,776 221,787 811,563
 ---------- ---------- ----------
 Operating income (loss) 427,002 (195,522) 231,480
 
 Interest expense (375) (3,504) (3,879)
 Investment income
 (expense), net 34,024(a) (46,749)(d) (12,725)
  ---------- ---------- ----------
 Income (loss) before
 income taxes 460,651 (245,775)(b) 214,876
 Income tax (expense)
 benefit (146,793)(c) 34,933 (111,860)(c)
  ---------- ---------- ----------
 Net income (loss) $313,858 $(210,842) $103,016
 ========== ========== ==========
 Net earnings (loss)
 per common share:
 Diluted $0.38(e) $(0.26)(e) $0.13(e)
 ========== ========== ==========
 Shares used in per share
 calculations:
 Diluted 818,088 818,088 818,088
 ========== ========== ==========
 
 (a) Includes $28 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 $162 million loss, net of minority interest, of Vesper
 Holdings from December 1, 2002 through February 28, 2003 due to the
 Company's practice of consolidating foreign subsidiaries one month in
 arrears.
 (c) The estimated fiscal year 2003 effective tax rate for operations
 excluding QSI and total QUALCOMM are 33% and 43%, respectively. The
 change in the estimated 2003 effective tax rate for operations
 excluding QSI from 34% used in the first quarter of fiscal 2003
 results in a 32% effective tax rate in the second quarter of fiscal
 2003. The change in the estimated 2003 effective tax rate for total
 QUALCOMM from 38% used in the first quarter of fiscal 2003 results in
 a 52% effective tax rate in the second quarter of fiscal 2003.
 (d) Includes $57 million equity losses in investees, $24 million other-
 than-temporary losses on investments, $23 million minority interest
 in loss of consolidated subsidiaries and $7 million 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)
 
 Six Months Ended March 30, 2003
 -----------------------------------
 
 Excluding QSI QSI Total QUALCOMM
 ------------ --- ------------
 Revenues:
 Equipment and services $1,591,475 $55,470 $1,646,945
 Licensing and royalty fees 493,267 -- 493,267
 ---------- ---------- ----------
 2,084,742 55,470 2,140,212
 ---------- ---------- ----------
 Operating expenses:
 Cost of equipment and
 services revenues 692,504 77,425 769,929
 Research and development 240,004 4,276 244,280
 Selling, general and
  administrative 223,756 59,967 283,723
 Amortization of other
 acquisition-related
 intangible assets 3,937 -- 3,937
 Asset impairment charges -- 160,145  160,145
 ---------- ---------- ----------
 Total operating expenses 1,160,201 301,813 1,462,014
 ---------- ---------- ----------
 Operating income (loss) 924,541 (246,343) 678,198
 
 Interest expense (1,714) (9,046) (10,760)
 Investment income
 (expense), net 60,124(a) (123,437)(d) (63,313)
  ---------- ---------- ----------
 Income (loss) before
 income taxes 982,951 (378,826)(b) 604,125
 Income tax (expense) benefit (324,375)(c) 64,600 (259,775)(c)
  ---------- ---------- ----------
 Net income (loss) $658,576 $(314,226) $344,350
 ========== ========== ==========
 
 Net earnings (loss)
 per common share:
 Diluted  $0.81(e) $(0.38)(e) $0.42(e)
 ========== ========== ==========
 Shares used in per share
 calculations:
 Diluted 816,916 816,916 816,916
 ========== ========== ==========
 
 (a) Includes $54 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 $192 million loss, net of minority interest, of Vesper
 Holdings from September 1, 2002 through February 28, 2002 due to the
 Company's practice of consolidating foreign subsidiaries one month in
 arrears.
 (c) The estimated fiscal year 2003 effective tax rate for operations
 excluding QSI and total QUALCOMM are 33% and 43%, respectively.
 (d) Includes $90 million other-than-temporary losses on investments,
 $89 million equity losses in investees, $37 million minority interest
 in loss of consolidated subsidiaries and $14 million 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 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 March 30, 2003
  -----------------------------------
 
 Excluding Total
 QSI QSI QUALCOMM
  -----------------------------------
 Earnings before taxes,
 depreciation, amortization
 and asset impairments (1) $497,860 $(20,068) $477,792
 Working capital changes
 and taxes paid (2) 85,886 15,166 101,052
 --------- --------- ---------
 Net cash provided (used)
 by operating activities 583,746 (4,902) 578,844
 
 Net additional share capital 56,823 -- 56,823
 Repurchases of common stock (123,577) -- (123,577)
 Capital expenditures (37,120) (12,290) (49,410)
 Net issuance of finance
 receivables (245) (6,035)  (6,280)
 Other investments -- (7,747) (7,747)
 Other items 416 (7,336) (6,920)
 Changes in fair value and other
 changes to marketable securities 9,403 (19,375) (9,972)
 Marketable securities pending
 settlement 33,055 (4,712) 28,343
 Transfer from QSI (3) 3,183 (3,183) --
 Transfer to QSI (4) (40,087) 40,087 --
 --------- --------- ---------
 Net increase (decrease) in
 cash, cash equivalents and
 marketable securities (5) $485,597 $(25,493) $460,104
  ========= ========= =========
 
 (1) Reconciliation to GAAP:
 Net income (loss) $313,858 $(210,842) $103,016
 Non-cash adjustments 131,127 190,774 321,901
 Plus: Taxes paid  52,875 -- 52,875
 --------- --------- ---------
 Earnings before taxes,
 depreciation,
 amortization and
 asset impairments $497,860 $(20,068) $477,792
 ========= ========= =========
 (2) Reconciliation to GAAP:
 Increase in cash resulting
 from changes in working
 capital $138,761 $15,166 $153,927
 Minus: Taxes paid (52,875) -- (52,875)
 --------- --------- ---------
 Working capital changes
 and taxes paid $85,886 $15,166  $101,052
 ========= ========= =========
 (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) $370,874 $(1,326) $369,548
 Plus: Net purchase
 (proceeds) of
 marketable securities 74,350 (80) 74,270
 Plus: Net increase
 (decrease) in fair value
 and other changes to
 marketable securities 9,403 (19,375) (9,972)
 Plus: Net increase
 (decrease) in marketable
 securities pending
 settlement 33,055 (4,712) 28,343
 Less: Proceeds from
 trading securities
 included in working
 capital change (2,085) -- (2,085)
 --------- --------- ---------
 Net increase (decrease)
 in cash, cash equivalents
 and marketable securities $485,597 $(25,493) $460,104
 ========= ========= =========
 
 
 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)
 
 Six Months Ended March 30, 2003
 -----------------------------------
 
 Excluding Total
 QSI QSI QUALCOMM
 -----------------------------------
 
 Earnings before taxes,
 depreciation, amortization
 and asset impairments (1) $1,051,064 $(43,544) $1,007,520
 Working capital changes
 and taxes paid (2) (117,474) 19,281 (98,193)
 ---------- ---------- ----------
 Net cash provided (used)
 by operating activities 933,590 (24,263) 909,327
 
 Net additional share capital 112,696 -- 112,696
 Repurchases of common stock (123,577)  -- (123,577)
 Capital expenditures (113,339) (17,632) (130,971)
 Net collections of finance
 receivables 6,790 372,222 379,012
 Other investments --  (31,738) (31,738)
 Other items 5,857 (22,163) (16,306)
 Changes in fair value and
 other changes to marketable
 securities 24,357 13,328 37,685
 Marketable securities pending
 settlement 33,055 (4,712) 28,343
 Transfer from QSI (3) 392,700 (392,700) --
 Transfer to QSI (4) (109,493) 109,493 --
  ---------- ---------- ----------
 Net increase in cash,
 cash equivalents and
 marketable securities (5) $1,162,636 $1,835 $1,164,471
 ========== ========== ==========
 
 (1) Reconciliation to GAAP:
 Net income (loss) $658,576 $(314,226) $344,350
 Non-cash adjustments 328,326 270,682 599,008
 Plus: Taxes paid 64,162 --  64,162
 ---------- ---------- ----------
 Earnings before taxes,
 depreciation,
 amortization
 and asset impairments $1,051,064 $(43,544) $1,007,520
  ========== ========== ==========
 (2) Reconciliation to GAAP:
 Increase (decrease) in
 cash resulting from
 changes in working
 capital $(53,312) $19,281 $(34,031)
 Minus: Taxes paid (64,162) -- (64,162)
 ---------- ---------- ----------
 Working capital changes
 and taxes paid $(117,474) $19,281 $(98,193)
 ========== ========== ==========
 (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) $588,034 $(4,897) $583,137
 Plus: Net purchase
 (proceeds) of
 marketable securities 519,275 (1,884) 517,391
 Plus: Net increase in
 fair value and other
 changes to marketable
 securities 24,357  13,328 37,685
 Plus: Net increase
 (decrease) in marketable
 securities pending
 settlement 33,055 (4,712) 28,343
 Less: Proceeds from
 trading securities
  included in working
 capital change (2,085) -- (2,085)
 ---------- ---------- ----------
 Net increase in cash,
 cash equivalents and
 marketable securities $1,162,636 $1,835 $1,164,471
 ========== ========== ==========
 
 
 QUALCOMM Incorporated
 CONDENSED CONSOLIDATED BALANCE SHEETS
  (In thousands, except per share data)
 (Unaudited)
 
 ASSETS
 
 QUALCOMM
 Excluding
 QSI QSI (a)(b) QUALCOMM QUALCOMM
 March 30, March 30, March 30, September 29,
 2003 2003 2003 2002
 --------- --------- ---------- -----------
 Current assets:
 Cash and cash
 equivalents $1,971,670 $18,171 $1,989,841 $1,406,704
 Marketable securities 1,732,454 18,150 1,750,604 1,411,178
 Accounts
 receivable, net 507,748 26,466 534,214 536,950
 Finance
 receivables, net 3,627 961 4,588 388,396
 Inventories, net 139,663 11,419 151,082 88,094
 Deferred tax assets (b) 459,241 -- 459,241 122
 Other current assets 110,954 24,108 135,062 109,322
 --------- --------- ---------- ---------
 Total current assets 4,925,357 99,275 5,024,632 3,940,766
 Marketable securities 480,669 142,869 623,538 381,630
 Finance receivables, net 4,272 449,101 453,373 442,934
 Other investments 4,722 172,714 177,436 276,414
 Property, plant and
 equipment, net 498,725 89,542 588,267 686,283
 Goodwill, net 345,048 1,865 346,913 344,803
 Deferred tax assets (b) 603,979 -- 603,979 7,493
 Other assets 218,212  181,832 400,044 425,725
 --------- --------- ---------- ---------
 Total assets $7,080,984 $1,137,198 $8,218,182 $6,506,048
 ========= ========= ========== ==========
 
 LIABILITIES AND STOCKHOLDERS' EQUITY
 
 Current liabilities:
 Trade accounts payable $141,041 $44,635 $185,676 $209,418
 Payroll and other
 benefits related
 liabilities 111,767  9,423 121,190 126,005
 Unearned revenue 167,427 6,019 173,446 183,482
 Dividends payable 39,475 -- 39,475 --
 Other current
 liabilities 184,355 28,855 213,210 156,081
 --------- --------- ---------- ---------
 Total current
 liabilities 644,065 88,932 732,997 674,986
 Unearned revenue 266,156 252 266,408 259,995
 Long-term debt -- 151,606 151,606 94,288
 Other liabilities 29,294 17,058 46,352 40,283
 --------- --------- ---------- ---------
 Total liabilities 939,515 257,848 1,197,363 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  80 -- 80 79
 Paid-in capital 6,176,021 -- 6,176,021 4,918,202
 Retained earnings 909,513 -- 909,513 604,624
 Accumulated other
 comprehensive loss (35,633) (29,212) (64,845) (130,949)
 --------- --------- ---------- ---------
 Total stockholders'
 equity 7,049,981 (29,212) 7,020,769 5,391,956
 --------- --------- ---------- ---------
 Total liabilities
 and stockholders'
 equity $7,989,546 $228,636 $8,218,182 $6,506,048
 ========= ======== ========== ==========
 
 (a) Includes the consolidated Vesper Holdings balance sheet at
 February 28, 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 Six Months Ended
  ---------------------- ----------------------
 March 30, March 31, March 30, March 31,
 2003 2002 2003 2002
 --------- --------- ---------- ----------
 
 Revenues:
 Equipment and services $789,482 $504,130 $1,646,945 $993,222
 Licensing and royalty
 fees 253,561 191,985 493,267 401,535
  --------- -------- ---------- ----------
 1,043,043 696,115 2,140,212 1,394,757
 --------- -------- ---------- ----------
 Operating expenses:
 Cost of equipment and
 services revenues 381,928 291,914 769,929 537,111
 Research and
 development 131,801 116,755 244,280 223,623
 Selling, general and
 administrative 135,724 123,960 283,723 224,725
 Amortization of
 goodwill and other
 acquisition-related
 intangible assets 1,965 63,682 3,937 127,413
 Asset impairment
 charges 160,145 -- 160,145  --
 --------- -------- ---------- ----------
 Total operating
 expenses 811,563 596,311 1,462,014 1,112,872
 --------- -------- ---------- ----------
 Operating income 231,480 99,804 678,198 281,885
 
 Interest expense (3,879) (6,156) (10,760) (8,718)
 Investment (expense)
 income, net (12,725) (25,007) (63,313) 13,025
 --------- -------- ---------- ----------
 Income before income
 taxes 214,876 68,641 604,125 286,192
 Income tax expense (111,860) (24,711) (259,775) (103,029)
  --------- -------- ---------- ----------
 Net income $103,016 $43,930 $344,350 $183,163
 ========= ======== ========== ==========
 
 Net earnings per
 common share:
 Basic $0.13 $0.06 $0.44 $0.24
 ========= ======== ========== ==========
 Diluted $0.13 $0.05 $0.42 $0.23
  ========= ======== ========== ==========
 
 Shares used in per share
 calculations:
 Basic 789,026 767,903 786,153 766,431
 ========= ======== ========== ==========
 Diluted 818,088 808,996 816,916 809,285
 ========= ======== ========== ==========
 Dividends declared
 per share $0.05 $-- $0.05 $--
 ========= ======== ========== ==========
 
 
 QUALCOMM Incorporated
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands)
  (Unaudited)
 
 Three Months Ended Six Months Ended
 ------------------------ ----------------
 March 30, December 29, March 30,
 2003 2002 2003
 ----------- ----------- ----------------
 Operating Activities:
 Net income $103,016 $241,334 $344,350
 Depreciation and amortization 46,349 43,177 89,526
 Asset impairment charges 160,145 -- 160,145
 Net realized gains on
 marketable securities and
 other investments (9,972) (1,296) (11,268)
 Change in fair values of
 derivative investments (106) (14) (120)
 Other-than-temporary losses
 on marketable securities
 and other investments 23,967  66,583 90,550
 Minority interest in loss of
 consolidated subsidiaries (22,733) (13,820) (36,553)
 Equity in losses of investees 56,526 32,700 89,226
 Non-cash income tax expense 58,986  136,627 195,613
 Other non-cash charges
 and credits 8,739 13,150 21,889
 Increase (decrease) in cash
 resulting from changes in:
 Proceeds of trading
 securities  2,085 -- 2,085
 Accounts receivable, net 133,020 (129,674) 3,346
 Inventories, net (43,335) (20,866) (64,201)
 Other assets 21,416 (14,624) 6,792
 Trade accounts payable (9,269) (9,663) (18,932)
 Payroll, benefits, and
 other liabilities 23,278 (1,545) 21,733
 Unearned revenue 26,732 (11,586) 15,146
 --------- ---------- -----------
 Net cash provided by
 operating activities 578,844 330,483 909,327
 --------- ---------- -----------
 Investing Activities:
 Capital expenditures (49,410) (81,561) (130,971)
 Purchases of wireless licenses -- (8,247) (8,247)
 Purchases of available-for-sale
 securities (608,886) (840,036) (1,448,922)
 Proceeds from sale of
 available-for-sale securities 600,539 415,046 1,015,585
 Purchases of held-to-maturity
 securities (93,595) (66,611) (160,206)
 Maturities of held-to-maturity
 securities 27,672 48,480 76,152
 Issuance of finance receivables (7,281) (140,740) (148,021)
 Collection of finance
 receivables 1,001 526,032  527,033
 Issuance of notes receivable (511) (666) (1,177)
 Other investments and
 acquisitions (7,747) (23,991) (31,738)
 Other items, net (4,013) 5,651 1,638
 --------- ---------- -----------
 Net cash used by investing
 activities (142,231) (166,643) (308,874)
 --------- ---------- -----------
 Financing Activities:
 Net proceeds from issuance
 of common stock 56,823 55,873 112,696
 Repurchase and retirement
 of common stock (123,577) -- (123,577)
 Proceeds from put options 7,136 -- 7,136
 Proceeds from the issuance
 of long-term debt 3,856 1,764 5,620
 Payments on long-term debt (12,075) (5,142) (17,217)
 Other items, net -- 20 20
 --------- ---------- -----------
 Net cash (used) provided by
 financing activities (67,837) 52,515 (15,322)
  --------- ---------- -----------
 Effect of exchange rate
 changes on cash 772 (2,766) (1,994)
 --------- ---------- -----------
 Net increase in cash and cash
 equivalents 369,548 213,589 583,137
 Cash and cash equivalents
 at beginning of period 1,620,293 1,406,704 1,406,704
 --------- ---------- -----------
 Cash and cash equivalents
 at end of period $1,989,841 $1,620,293 $1,989,841
 ========== ========== ==========