'Devices That Dare to Be Different' Courtesy of AlphaCell and Emblaze Systems.

Business Editors/High-Tech Writers

3GSM World Congress 2004

Hall 4, Stand 2K

RA'ANANA, Israel--(BUSINESS WIRE)--Feb. 23, 2004

AlphaCell and Emblaze Systems are set to unveil the mobile industry's most dynamic business proposition at 3GSM 2004. What you can expect is a total mobile entertainment experience on customizable handsets with specifically tailored content in the areas of music, games and sports. In short, cleverly designed devices that dare to be different.

AlphaCell has refined its business to focus on customizable mobile phones aimed principally at the entertainment market. Emblaze Systems, having worked with some of the world's foremost mobile operators, is contributing its acclaimed technological expertise in mobile media delivery, through its advanced backend system (EMplatform(TM)), for the management and delivery of a wide range of mobile media sports, games and music services.

The result? Mobile operators can create, manage and deliver revenue-generating rich-media services to their subscribers via a totally customized mobile handset from AlphaCell, designed for a first rate user experience.

According to Strategy Analytics, the international research and consulting firm, over the next five years revenue streams for the mobile entertainment segment will increase by over 800 per cent - from US$ 3.5 billion to more than US$ 29 billion in 2008. Video messaging alone will be worth more than US$ 3.5 billion in 2008 while sports, games and music will be valued in excess of US$ 23.3 billion combined. These exceptional forecasts further endorse Emblaze and AlphaCell's strategic move into video - sports, music and game sectors for multi-platform multimedia entertainment services.

AlphaCell and Emblaze have developed three distinct, lifestyle-based entertainment segments - music, games and sports - each with a dedicated M5 handset and accompanying content, uniquely selected and packaged for each one.

AlphaCell and Emblaze digress from the 'one size fits all' model of handset development. Instead, they enable mobile operators to appeal to a range of audiences via devices and content specifically tailored to individual interests. A phone's look and feel can be personalised, rather than being dictated by the manufacturer. This unique concept from AlphaCell and Emblaze gives power to the operator.

Choices can be made about content and navigation. Even the interface can be changed using AlphaCell's proprietary 'Skin Generator', software that enables operators to quickly and easily create their own look and feel. This level of customization is a powerful platform for brand extension and is all achieved via a single supplier. What was once difficult has become easily achievable.

Avner Mor, CEO of AlphaCell, explained: "We see ourselves as an antidote to the major handset manufacturers who still offer operators very little in the way of deciding the form and function of handsets. We are the "anti-establishment' of the mobile industry and our proposition is very compelling for this exact reason."

Itai Ben-Dor, MD of Emblaze, added: "AlphaCell and Emblaze offer a unique and clear-cut opportunity for operators interested in wrestling control of handset design from the big manufacturers. The benefit is ultimately passed on to the end user who can now own a phone complete with content that suits both their lifestyle and interests."

ABOUT ALPHACELL

AlphaCell, an Emblaze Group company, is a leading provider of customized rich media handsets. Its unique technologies coupled with its versatile, customer-focused delivery platform enable AlphaCell to rapidly and cost-effectively provide precisely tailored handset solutions. The company's handsets are designed to facilitate an unparalleled wireless communication experience for end users, empowering its customers to broaden their service offering and expand their brand strategy. The M5, AlphaCell's flagship device is fully customizable - from casing colour and logo to user interface design, with value-added services targeted to niche markets. AlphaCell is led by a core team of technology and business managers with extensive experience in the wireless market, and backed by a dedicated group of engineers with a proven track record in handset development.

www.alphacell.com

ABOUT EMBLAZE SYSTEMS

Emblaze Systems, established in 1994 and part of the Emblaze group of companies, is a leading provider of customized, media centric, end-to-end solutions for wireless multimedia. The Emblaze solution comprises a suite of products and professional services supporting the entire process of creating, managing and delivering mobile rich media services.

The Emblaze solution is compliant with 3GPP, 3GPP2, MPEG-4 and other globally recognized standards on interoperability. Emblaze continues to play a key role in setting industry standards, as a founding and active member of leading organizations including 3GPP, OMA and the PSS Activity Group within IMTC.

The company went public in 1996 and is traded on the London Stock Exchange (BLZ).

www.emblaze.com

ABOUT THE EMBLAZE GROUP (EMBLAZE LTD.)

Emblaze Ltd. consists of four companies sharing a common vision to lead the market transformation to rich media personal communication:

Emblaze Systems, a leading provider of media centric end-to-end solutions for wireless multimedia; AlphaCell, a wireless rich media smart phone design house; Orca Interactive, a global market leader in the development of highly scalable solutions for commercial iTV services; and Emblaze Semiconductor, a fabless IC company specializing in highly integrated digital multimedia chips for telecommunication, consumer and security markets.

Emblaze Ltd. has offices in the United States, United Kingdom, China and Israel.