Extended Systems to Provide Server Synchronization and Management Solutions for Windows-Powered Pocket PC Enterprise Customers

The Original Press Release

Extended Systems to Provide Server Synchronization and Management Solutions for Windows-Powered Pocket PC Enterprise Customers

BOISE, Idaho — April 19, 2000 — XTNDConnect Server to help IT managers rapidly deploy Pocket PCs

Extended Systems (Nasdaq:XTND), a leading provider of mobile information management products, announced today that it is a Pocket PC Launch Partner and is providing secure, server-based synchronization and management solutions for Pocket PC enterprise customers in wired and wireless environments.

Through a previously announced marketing agreement with Microsoft, Extended Systems will market and sell XTNDConnect Server to Pocket PC users and IT managers who are integrating Windows-powered Pocket PCs into the enterprise. This strategic relationship marks a commitment from both companies to bring next-generation mobile devices to consumers and the enterprise.

"This announcement builds on our existing agreement with Microsoft and affirms our belief about the continued growth in handheld and wireless computing," said Extended Systems CEO and President Steve Simpson. "XTNDConnect Server expands the functionality of the Pocket PC, by eliminating its dependence on a PC and allowing direct access to corporate servers. This makes the Pocket PC a true extension of the enterprise."

While the Pocket PC will provide users with direct access to pocket versions of Microsoft Outlook, Microsoft Word, Microsoft Excel and Internet Explorer, XTNDConnect Server will provide IT administrators with the ability to integrate and manage Pocket PCs in the enterprise, making them a viable solution for critical, line-of-business data. In addition, XTNDConnect Server uses a Microsoft Management Console plug-in, allowing administrators to remotely monitor the status of the server.

"Corporations view server-based synchronization and management products as key components of their mobile computing standard," said Rogers Weed, director of marketing for the Mobile Devices Division at Microsoft Corp. "Extended Systems' XTNDConnect Server offers an excellent solution because it addresses this important enterprise need by offering breadth, adaptability and flexibility."

Try and Buy Offer

Extended Systems and Microsoft are currently offering a 25-seat license for Windows-powered Pocket PC devices to synchronize with Microsoft Exchange Servers, including all the management tools, at no charge(1). This special license will allow companies to deploy XTNDConnect Server 2.4 with Microsoft Exchange Server to support synchronization with up to 25 Pocket PCs at no cost(2), representing a savings of over $6,000. To qualify for the offer, companies need to have purchased a Pocket PC(3). To download Extended Systems' XTNDConnect Server go to http://www.microsoft.com/windowsce/enterprise.

In addition, for 60 days, companies will be able to test and deploy the entire XTNDConnect Server solution offering synchronization between Microsoft Exchange, Lotus Domino and ODBC-compliant database servers and Pocket PC, Palm Computing and EPOC clients, with all the management tools needed to run a full trial environment(4). Customers that require Lotus Domino, ODBC, Palm, EPOC, encryption or more than 25 seats after the 60 days will be able to contact Extended Systems directly for licensing options by calling 800/235-7576. More information is available on the Web at http://www.extendedsystems.com/go/ppc/.

About XTNDConnect Server

XTNDConnect Server provides secure data access directly to Microsoft Exchange or Lotus Domino servers and ODBC-compliant databases such as Microsoft SQL Server and Extended Systems' Advantage Database Server. XTNDConnect Server gives IT managers a complete solution for integrating Pocket PC devices into the enterprise. It also includes the necessary tools to securely integrate and support these devices in the corporate environment.

Key Features of XTNDConnect Server 2.4

— Synchronization. XTNDConnect Server 2.4 synchronizes e-mail, contacts, appointments, tasks and custom data between Windows-powered Pocket PCs, Palm Computing devices, and EPOC-based smartphones and communicators, and Microsoft Exchange, Lotus Domino and ODBC-compliant database servers such as Microsoft SQL Server, Sybase, Oracle, DB2, Extended Systems' Advantage Database Server and others.

— Security. Certicom encryption ensures secure data transfer between enterprise applications and mobile devices.

— Management tools. Backup/restore, installation, configuration and reporting capabilities make managing mobile devices easier. The remote server monitor is a plug-in for the Microsoft Management Console that integrates with the latest administration tools in Microsoft BackOffice and Windows 2000.

— Application deployment. Setup wizards and the built-in Visual Basic development system Scripting Edition (VBScript) reduce the time for installation and configuration as well as enable custom application development for server-based applications.

— Supported platforms. XTNDConnect Server 2.4 can be used with Pocket PC, Palm Computing and EPOC mobile devices.

About Pocket PC

Windows-powered Pocket PCs, the next-generation PDAs from Microsoft and its partners, offer customers the best way to connect to their most essential information while away from their desk, yet are versatile enough to satisfy the personal needs of today's busy mobile lifestyle. Pocket PCs already include a broad range of native business, personal productivity, and entertainment applications, yet can easily be expanded to adapt to each customer's changing needs through a continually growing number of industry standard hardware and software expansion options.

About Extended Systems

Extended Systems is a leading provider of mobile information management solutions that enable mobile users to access, synchronize, collect, retrieve and print information on demand. The company's products include PC and server-based data synchronization software, short-range wireless connectivity technologies (IrDA- and Bluetooth-compliant), Linux-based Internet access solutions, a complete line of network print servers, and client/server database management systems with remote access capabilities. Its customers and allies are global leaders in mobile communications and computing and include Microsoft Corp., Motorola, Inc., Ericsson Mobile Communications AB, 3Com Corporation, Sharp Corporation, IBM, Toshiba Engineering Corporation, and Hewlett-Packard Company.

Founded in 1984, Extended Systems has an extensive domestic and international distribution network with offices located worldwide. For more information, please contact Joanne Taylor at Extended Systems Inc., 5777 North Meeker Avenue, Boise, ID 83713. Telephone: 208/322-7575. Fax: 208/377-1906. Web site address: http://www.extendedsystems.com.

Except for historical information contained herein, the matters set forth in this press release, including the success of Extended Systems' alliance with Microsoft and statements regarding the growth of handheld and wireless computing and the expected performance of XTNDConnect Server, are forward-looking statements that are subject to risks and uncertainties. These include the impact of competitive products and pricing, alternative technological advances, the timely and successful development and market acceptance of new products and upgrades to existing products, the risk that products do not perform as intended, and other risks as detailed from time to time in Extended Systems' SEC filings, including its annual reports on Form 10-K and its quarterly reports on Form 10-Q.

(1) The Try and Buy offer is open to North America only; updates for further international availability will be referenced on the offer Web site.

(2) The Try and Buy offer is a license for server sync capability to licensed servers only. Customers must ensure that they are in compliance with the client access, or other licensing procedures of their server product vendor e.g., Lotus Domino, any ODBC-compliant database, Microsoft Exchange or the Windows NT(R) and Windows 2000 operating systems.

(3) The Try and Buy offer plan includes a limit of one 25-seat license per company. Companies with multiple server locations qualify for one 25-seat license per site with over 50 full-time staff.

(4) The 60-day evaluation version includes all the functionality in XTNDConnect Server 2.4 except Certicom encryption. At the close of the 60-day period, as reflected in the End User License Agreement, the license to trial for Lotus Domino, ODBC, Palm Computing, and EPOC will expire. Microsoft and Extended Systems intend that the license to trial Microsoft Exchange Server and Windows-powered Pocket PCs, including XTNDConnect Server management tools, will convert to a full license for the seats in use, up to a limit of 25.

CONTACT:
Extended Systems, Inc.
Joanne Taylor, 208/322-7575 joannet@extendsys.com