ArialPhone Corp. Announces Availability of Wearable, Wireless Telephone Communications Device for the Home and Office.

Business Editors and High-Tech Writers

VERNON HILLS, Ill.--(BUSINESS WIRE)--July 23, 2001

Fry's, RCS and Other Leading Retailers to Carry

New Voice-Controlled Earset

ArialPhone(TM) Corp. of Vernon Hills Monday announced the availability of ArialPhone, a new wireless telephone communications earset designed to make phone calling more convenient for independent professionals who work in small office or home office settings.

Offered at a suggested list price of $399, ArialPhone will be available this month in leading retail outlets across the country including Fry's Electronics and RCS Computer Experience, and through Hello Direct, a leading direct marketer of telephony products. In addition, it can be purchased from the ArialPhone Corp. Web site at www.arialphone.com.

Two years in development, ArialPhone combines wireless and speech recognition technology in a wearable, one-ounce earset that interacts with PC contact management programs. An entirely new category of product, the device works with voice-dialing software, allowing the user to place standard analog phone calls through a computer contact database by simply saying a person's name or phone number. ArialPhone features a patented, hands-free design that enables users to move untethered up to 150 feet from their PCs.

"ArialPhone is ideal for independent professionals who want it all -- a balanced life and productive career," said Jim Alland, co-founder and chief executive officer of ArialPhone Corp. "Now these professionals can truly multi-task while conducting important business calls. Whether they're writing a brief at the coffee table, cleaning up the kitchen or getting the kids ready for school, they can get it all done and still remain connected to their customers and business associates with ArialPhone."

The Rapidly Growing SOHO Market

The small office/home office (SOHO) professionals or "free agents" who make up ArialPhone's target market are self-employed or highly commissioned individuals who typically utilize a PC and the Internet to perform job functions. They represent 39 million Americans, or 16 percent of the population. In 1999, there were an estimated 20.7 million income-generating home office households in the U.S. alone.

Top-Quality Communications

ArialPhone offers top-quality communications within a 150-foot range -- even through walls. Unlike the bulky, over-the-head phone headsets marketed by many companies, ArialPhone features a sleek, lightweight earset that fits easily over the ear via a comfortable, ergonomically-designed hook that can be worn all day.

In addition to the earset and voice-dialing software, ArialPhone also consists of a base station, which is attached to both a PC and an analog phone line. Operation is simple: the user presses a single "action button" on the earset to alert the base station to listen for voice commands. These commands prompt the device to access an existing PC-based contact management directory. The call is then placed as directed.

Innovative Battery Design Allows Unlimited "Talk Time"

A single, rechargeable lithium ion polymer battery powers the ArialPhone earset, providing a "talk time" of two-to-three hours; the recharge time is approximately two hours. The base station has two charging slots and comes with two batteries, so there will always be a fully charged battery available to allow an infinite amount of "talk time." If the battery runs low during a phone conversation, the earset will generate an alert. The phone connection will be held while the user replaces the battery. The simple battery exchange process takes only seconds.

Easy "Out of the Box" Installation and Functionality

ArialPhone requires no customization and is ready to use "out of the box." Through the use of speaker-independent voice recognition technology, the device enables the use of intuitive and natural language-based commands, eliminating the need for any voice training prior to operation. And, no PC integration on the part of the user is necessary: ArialPhone accesses PC-resident contact management systems via a dynamic interface. Currently, ArialPhone Corp. offers such an interface to Microsoft Outlook and Outlook Express, with interfaces to other leading contact managers slated for availability later this year.

To use ArialPhone, consumers must have access to a PC and analog phone line. Installation is simple: the base station connects with the user's PC via a Universal Serial Bus (USB) interface and with the telephone system through a standard phone jack. The earset communicates with the base station via a 900MHz digital spread spectrum radio frequency link. The voice-dialing software is installed in minutes via a single CD.

About ArialPhone Corp.

ArialPhone Corp., launched in January 2001, is a provider of wireless telephone communications devices and voice-enabling software applications. The company's first product, ArialPhone, combines wireless and voice recognition technology in a sleek, patented earset design that improves standard telephone calling processes. Future ArialPhone applications will enable Internet calling and voice control of digital entertainment and other home automation functions, such as changing TV channels; recording TV programs; controlling digital music players, set top boxes and cable modems; and even turning lights off and on. Privately held, ArialPhone Corp. has headquarters near Chicago in Vernon Hills. For more information, visit www.arialphone.com, or contact the company's headquarters at 3 Hawthorn Parkway, Vernon Hills, Ill. 60061. Tel: [phone]. Fax: [phone]. E-mail: [e-mail].

ArialPhone and ArialPhone Corp. are trademarks of ArialPhone Corp.