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To: Raymond Duray who wrote (71648)	2/26/2001 12:35:57 AM
From: Scott Zion	Read Replies (1) \| Respond to of 436258

Hello Ray, QCOM's exposure to G* is $56 mil....they had a write-off of $595 mil last quarter. ---snip--- On January 16, 2001, Globalstar announced that it has suspended indefinitely principal and interest payments on all of its debt, including its vendor financing obligations. As a result, Globalstar did not make a principal and interest payment of approximately $22 million due to QUALCOMM on January 15, 2001. Globalstar retained The Blackstone Group as its financial adviser to assist in developing initiatives, including debt restructuring, identifying funding opportunities and pursuing other strategic alternatives. Due to the revised status of Globalstar, the Company recorded total charges of $595 million relating to reserves against certain Globalstar-related assets and for related obligations (excluded from pro forma earnings). After these charges, the Company has approximately $56 million in net assets remaining related to the Globalstar business. In addition, the Company did not recognize revenues from its business with Globalstar other than cash payments received, resulting in a $0.03 loss per share on the Globalstar-related business included in pro forma earnings in the first quarter of fiscal 2001. qualcomm.com