Broadcom Sues Qualcomm for Patent Infringement

-- Broadcom Corporation (Nasdaq: BRCM), a global leader in wired and wireless broadband communications semiconductors, announced today that it has commenced federal litigation against Qualcomm Incorporated (Nasdaq: QCOM) alleging that the San Diego-based company infringes 10 Broadcom patents related to wired and wireless communications and multimedia processing technologies.

"Broadcom was an early pioneer in a broad range of wired and wireless communications and multimedia technologies, and has enabled the convergence of digital video, digital audio, Wi-Fi(R), Bluetooth(R), storage, Voice over Internet Protocol (VoIP), and adaptive coding technologies in many markets, including advanced, multi-function cellular products and services," said Scott McGregor, Broadcom's President and CEO. "We believe that Qualcomm's current and next generation cellular baseband and radio frequency (RF) product lines infringe a number of our patents."

The proceedings instituted by Broadcom come at a time when the cellular phone industry is transitioning from providing voice-only services to offering customers an array of multimedia services including a wide variety of audio, video, data and communications capabilities. Among the multimedia features now being offered to consumers are TV, MP3 capabilities, personal video recording (PVR), VoIP and the push-to-talk feature, which enables users to use their cellular phones like walkie-talkies. Consumer desire for such features is driving the next upgrade cycle in networks and cellular phones. Broadcom is at the vanguard of this transition, with a strong intellectual property portfolio in such technologies as Bluetooth, Wi-Fi, cellular baseband, multimedia processing, VoIP, storage and security.

"The communications industry is in the early stages of converging GSM and CDMA networks into a unified 3G network, which has the potential to enable more efficient voice and new high bandwidth data services that will drive a new generation of portable devices," McGregor continued. "Over more than a decade, Broadcom has assembled a portfolio of communications and related technologies unmatched in its breadth and depth, presenting us with compelling opportunities as we help drive the convergence of various technologies and features into next generation smart cell phones."

In two complaints filed yesterday in the United States District Court for the Central District of California, Broadcom is seeking unspecified monetary damages from Qualcomm as well as a permanent injunction barring the manufacture and sale of Qualcomm's core suite of baseband and RF integrated circuits, including its multimedia, enhanced and convergence platform chips and its QChat(R) VoIP technology for cellular phones, which Broadcom alleges infringe its patents.

Additionally, today Broadcom filed a complaint with the United States International Trade Commission (ITC) alleging that Qualcomm has engaged in unfair trade practices by importing integrated circuits and other products that infringe five Broadcom patents. Broadcom requested that the ITC institute an investigation into Qualcomm's infringing imports and ultimately issue an Exclusion Order to bar importation of those Qualcomm devices into the United States. Broadcom also seeks a Cease and Desist Order to bar further sales of infringing Qualcomm products that have already been imported.

Broadcom expects that the ITC investigation will commence in late June and that the case will be tried early next year.

Broadcom's intellectual property portfolio today includes 955 issued U.S. patents and over 3,200 additional U.S. patent applications.

About Broadcom

Broadcom Corporation is a global leader in wired and wireless broadband communications semiconductors. Our products enable the convergence of high- speed data, high definition video, voice and audio at home, in the office and on the go. Broadcom provides manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices with the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions. These solutions support our core mission: Connecting everything(R).

Broadcom is one of the world's largest fabless semiconductor companies, with annual revenue of more than $2 billion. The company is headquartered in Irvine, Calif., with offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at 1-949-450-8700 or at www.broadcom.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward- looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom include, but are not limited to, our ability to prevail in the federal lawsuits and United States International Trade Commission proceeding against Qualcomm; the ability of our patents to protect our intellectual property; our ability to enforce our intellectual property rights; and the risks associated with litigation in general, including the costs, expenditures and time that must be devoted to litigation as well as the potential diversion of management's attention that may result from being engaged in litigation. Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Broadcom(R), the pulse logo, Connecting everything(R) and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. QUALCOMM(R) and QChat(R) are trademarks of Qualcomm Incorporated. Wi-Fi(R) is a trademark of the Wi-Fi Alliance. Bluetooth(R) is a trademark of the Bluetooth SIG. Any other trademarks or trade names mentioned are the property of their respective owners.

SOURCE Broadcom Corporation