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To: Getch who wrote (38469)	1/26/2001 2:45:42 PM
From: Thomas Mercer-Hursh	Read Replies (1) \| Respond to of 54805

I guess the point is that for Qualcomm in particular, the sale of securities is not a one-time event, and as revenues and royalties continue to grow, will become an even more important function of shareholder value. Were QCOM to re-style itself as primarily an investment business, then it would be appropriate that gains and losses from the sale of securities would be included in their operating income. Assuming that they will remain primarily an IP and products business, one wants these excluded, even if they recur.

To: Getch who wrote (38469)	1/26/2001 3:55:26 PM
From: Mike Buckley	Read Replies (1) \| Respond to of 54805

Getch, I guess the point is that for Qualcomm in particular, the sale of securities is not a one-time event, and as revenues and royalties continue to grow, will become an even more important function of shareholder value. That being the case, the sale of the securities should not have been excluded from the pro forma. However, the fact that the pro forma is very specific about having excluded them, investors can add it back in at will as part of their analysis. I think we can expect Qualcomm's stock to be even more volatile given the posture you explained by management in the conference call. (Thanks. I haven't listened to it yet.) Witness Intel which convinced analysts in 1999 to include the sale of securities as part of their core business for the same reason you mentioned. Yet when those sales were worth a lot less money because the market tanked last year, Intel eventually began issuing warnings. --Mike Buckley