Agreement Between Intel and Phone.com to Improve Performance, Security of Internet-enabled Mobile Phones.

High Tech Writers

Wireless 2000

NEW ORLEANS--(BUSINESS WIRE)--Feb. 28, 2000

Intel Corporation today announced an agreement with Phone.com, Inc. (Nasdaq:PHCM), a leading provider of mobile Internet software and services, intended to improve the performance and increase security of Internet-enabled mobile phones. Announced at CTIA Wireless 2000, Phone.com(TM) will design its UP.Browser(TM) microbrowser to be optimized for Intel's Flash Data Integrator (FDI) software in order to improve the ability of a mobile phone to store and access larger amounts of Internet-based information while enhancing data management capabilities. The agreement further demonstrates Intel's commitment to optimizing wireless Internet devices.

Mobile phones equipped with the Intel FDI-optimized UP.Browser should enjoy improved data storage capabilities, including improved cache, provisioning, and Internet application data storage. The enhanced microbrowser is expected to increase wireless phone security by taking advantage of such silicon-based fraud protection features as one-time programmable bits and advanced block locking. The arrangement, including the joint testing and system validation, will hasten handset manufacturers' time-to-market by reducing OEM porting and testing time. The Phone.com UP.Browser is currently licensed by more than 25 wireless phone manufacturers worldwide, representing nearly 90 percent of the wireless phone market segment.

"This effort with Phone.com will provide enhanced capabilities for cellular users. Intel's FDI and Intel flash memory are key ingredients in making the promise of wireless Internet devices a reality," said Ron Smith, vice president and general manager of Intel's Wireless Communications and Computing Group.

Said Jeff Damir, Phone.com vice president of business development, "Our work with Intel's Flash Data Integrator software benefits both consumers, who will be able to store more information on their mobile phones, and wireless device manufacturers, which will be able to bring mobile phones with enhanced fraud protection to market quickly. We are pleased to work with Intel, the world's largest supplier of flash memory, on this project."

Intel's Commitment to Wireless Communications

Intel announced its commitment to wireless communications with the formation of the Wireless Communications and Computing Group (WCCG) in December 1999. WCCG focuses on cellular and wireless communications, providing building blocks for various computing and wireless communication devices and data applications in the growing cellular market segment. These include flash memory, chipsets, reference designs and software, digital signal processing activities, StrongARM* and Intel architecture technology for low-power handheld devices.

Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.

About Phone.com

Phone.com, Inc. is a leading provider of software and services that enable the delivery of Internet-based information services to mass-market wireless telephones. Using its software, wireless subscribers have access to Internet- and corporate intranet-based services, including e-mail, news, stocks, weather, travel and sports. In addition, subscribers have access via their wireless telephones to network operators' intranet-based telephony services, which may include over-the-air activation, call management, billing history information, pricing plan subscription and voice message management. Phone.com is headquartered in Silicon Valley, Calif., and has regional offices in Belfast, Copenhagen, London and Tokyo. Visit http://www.phone.com for more information.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual 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 and reliance on a small number of customers, Phone.com's dependence on the acceptance of its products by network operators and wireless subscribers, Phone.com's ability to adequately address the rapidly-evolving market for delivery of Internet-based services through wireless telephones, the need to achieve widespread integration of Phone.com's browser in wireless telephones, competition from companies with substantially greater financial, technical, marketing and distribution resources and the ability of Phone.com to manage a complex set of engineering, marketing and distribution relationships. Further information regarding these and other risks are included in Phone.com's Form 10-Q for quarter ended December 31, 1999, in its prospectus dated November 16, 1999 and in its other filings with the Securities and Exchange Commission.

* The Phone.com name and logo and the family of terms carrying the "UP." prefix are trademarks of Phone.com, Inc. All Rights Reserved. Third party marks and brands are property of their respective holders.