Phone.com to Acquire APiON Ltd. / Acquisition Accelerates Phone.com's GSM Footprint and Product Development Capabilities for Key Markets

Geneva (PROTEXT) - At Telecom'99 Phone.com, Inc. (Nasdaq:PHCM) announced today that it has signed a definitive agreementto acquire the WAP products and related operations of APiON Ltd,a Belfast, Northern Ireland based telecommunications softwarecompany. This acquisition will greatly enhance Phone.com'sability to rapidly penetrate and service the GSM marketconsisting of over 300 network operators worldwide. (Photo: http://www.newscom.com/cgi-bin/prnh/19990706/PHCMLOGO) APiON is a leading European WAP software supplier withcommercial relationships for delivery of WAP software to 10 GSMwireless network operators including Swisscom and Sonera. APiONhas particular expertise in GSM Intelligent Networks, wirelessdata and WAP technology. The acquisition further increasesPhone.com's strong technical and sales presence in North America,Europe and Asia. In connection with the acquisition, APiON shareholders willreceive 1.3 million shares of Phone.com valued at approximatelyUS$239 million as of October 8, 1999. The stock-for-stocktransaction will be accounted for using purchase accounting.Closing is anticipated to occur prior to the end of October 1999.APiON's non-WAP related services business is excluded from theacquisition. APiON's Irish facilities will form the basis of Phone.com'sfirst product development centre outside of Silicon Valley andwill also act as the support centre for carrier deployments inEurope. The combined resources of Phone.com and APiON will enablethe company to provide customers with greater technical expertiseand support. "APiON adds leading European network operators to Phone.com'sextensive list of GSM customers that includes MannesmannMobilfunk, Omnitel, Cegetel/SFR, Telstra, Sunday and 17 others,"said Alain Rossmann, Chairman and CEO of Phone.com. "The additionof over 110 experienced people, including APiON's managementteam, to our European organization underscores Phone.com'scommitment to the global GSM market and consolidates our positionas a leading supplier of WAP software." "APiON quickly saw the potential of WAP and was pleased to bean early member of the WAP forum. With our telecom knowledge wewere able to quickly develop the core components of WAP and bringthem to market with operators such as Sonera and Swisscom," saidAPiON managing director Denis Murphy. "We have admiredPhone.com's skills in co-founding the WAP Forum, in buildingsuccessful customer relationships and in raising the profile ofthis important technology." "We believe that consolidating the two companies will allow usto achieve immediate growth and offer better service and supportto our customers," said Malcom Bird, managing director ofPhone.com (Europe). "The combined companies have contractualrelationships with 43 wireless network operators for eithertrials or commercial deployment, 31 of which are GSM operators.We believe that Phone.com is now well positioned as a firstchoice source for vendor-neutral, interoperable WAP softwareinfrastructure." About Phone.com Phone.com, Inc. is a leading provider of software that enablesthe delivery of Internet-based services to mass-market wirelesstelephones. Using its software, wireless subscribers have accessto Internet- and corporate intranet-based services, includingEmail, news, stocks, weather, travel and sports. In addition,subscribers have access via their wireless telephones to networkoperators' intranet-based telephony services, which may includeover-the-air activation, call management, billing historyinformation, pricing plan subscription and voice messagemanagement. Phone.com is headquartered in Silicon Valley,California and has regional offices in London and Tokyo. Visithttp://www.phone.com for more information. About APiON APiON is a leading provider of infrastructure into thewireless Internet. APiON products and services allow customers,using any wireless technology, to access a wide range of Internetand advanced telephony services. APiON's underlying technologiesconverge IP, intelligent networking and wireless data, andposition carriers for the explosion of data based value addedservices expected in third generation wireless systems. APiON isheadquartered in Belfast, Northern Ireland. Except for the historical information contained herein, thematters discussed in this news release are forward-lookingstatements involving risks and uncertainties that could causeactual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include,but are not limited to, Phone.com's limited operating history,potential fluctuations in Phone.com's operating results,uncertainties related to Phone.com's long sales cycle andreliance on a small number of customers, Phone.com's dependenceon the acceptance of its products by network operators andwireless subscribers, Phone.com's ability to adequately addressthe rapidly-evolving market for delivery of Internet-basedservices through wireless telephones, the need to achievewidespread integration of Phone.com's browser in wirelesstelephones, competition from companies with substantially greaterfinancial, technical, marketing and distribution resources andthe ability of Phone.com to manage a complex set of engineering,marketing and distribution relationships. Further informationregarding these and other risks is included in Phone.com's form10K September 24, 1999 and in its other filings with theSecurities and Exchange Commission. NOTE: Phone.com and the Phone.com logo are trademarks ofPhone.com, Inc. ots Original Text Service: Phone.com, Inc.Internet: http://www.newsaktuell.de Contact: Investor, BonnieMcBride, Managing Director of The Carson Group, (USA) 415-989-0399; or general press and media, Vicky Ryce (in GENEVA) of Text100 Ltd., mobile, 44-0-797-416-1182, or vickyr@text100.co.uk, forPhone.com (Europe) Limited; or general press and media, RowanBenecke of PR21, (USA) 415-439-8811, or rowan_benecke@pr21.com,for Phone.com, Inc. Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990706/PHCMLOGO

AP Archive: http://photoarchive.ap.org

PRN Photo Desk, (USA) 888-776-6555 or 201-369-3467 Website: http://www.phone.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT