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In addition to supporting Airgo's existing business, Qualcomm said it will be integrating Airgo's 802.11a/b/g and 802.11n technology into select Mobile Station Modem (MSM) chipsets. Qualcomm will also use this technology for chipsets on the new "Snapdragon" platform, which is designed to offer ubiquitous mobile broadband connectivity.

Under the agreement with RFMD, Qualcomm will acquire the majority of North Carolina-based RFMD's Bluetooth assets, specifically those based in San Diego. Qualcomm will be integrating the Bluetooth Enhanced Data Rate (EDR) technology into MSM reference designs to offer its device manufacturing customers a more complete solution. RFMD's San Diego-based team currently designs technology for both the mobile handset and headset markets.

QUALCOMM estimates the combined effect of these acquisitions on its pro forma earnings per share to be dilutive by approximately $0.04 in its fiscal year ending September 2007, and modestly accretive in FY08. The acquisitions are expected to close by the end of December 2006.

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