Birdstep IP Zone Server 2.0 -- A Complete Management Solution.

Business Editors/High-Tech Writers

Wi-Fi PLANET Spring 2004

OSLO, Norway & SEATTLE--(BUSINESS WIRE)--June 9, 2004

Based on the Success of IP Zone for both Public WLAN and Enterprise

Secure Internet Access, the Newest Version of IP Zone Brings

Additional Functionality to Meet Business Critical Needs

Birdstep Technology (OSE:BIRD) today announced the release of IP Zone Server 2.0 designed to provide to both public hotspot owners and modern enterprises the possibility to offer multiple authentication methods and accounting possibilities through a complete management solution. The latest IP Zone version brings flexibility of deployment to fit the various needs in the market. Under a common management platform, both vendors of public WLAN and enterprises can adapt the software solution to their needs.

"At Birdstep we are proud of this release that satisfies the needs in the market, both for existing and future customers, and because it proofs Birdstep's ability to solve technical challenges with premium quality," says CEO Jorgen Bredesen.

"Birdstep is the very first vendor to offer broadband solutions with this complete range of alternatives incorporated in one piece of software", adds AK Heistad, VP and Global Manager IP Zone. "We are confident the release of IP Zone Server 2.0 will be met with enthusiasm."

Among the new features supported are 802.1X authentication in addition to the more common authentication types such as credit card, scratch card, SMS, username and password. In addition, Birdstep supports Mobile IP as a seamless and automated authentication method. The 2,0 release comes with a full AAA RADIUS server and scratch card generation system to facilitate low cost and rapid deployment.

IP Zone 2.0 is being rolled out to businesses around the world. The former version, IP Zone Server 1.6, has been deployed by major wireless ISPs and mobile operators, hotel chains, airports, large enterprises and other locations, such as gas stations, convention centres and various public venues both in the USA and Europe. The new version adds new features based on our advanced customer requirements and extensive field experience in the WLAN market for the last 4 years.

Highlights of Birdstep IP Zone 2.0 Features

-- Out of the box flexible WLAN platform for any venue and any

hardware

-- Full multi operator and multi user support.

-- Full support for location and context aware applications

-- Includes ready to use AAA functionality

-- Supports any deployment scenario: centralized, distributed or

combined

-- Licensing model that fits various business approaches

-- Virtual LAN management support to be able to control and

manage various access offerings from the same access points

and infrastructure (Hotspots)

-- High availability (full redundancy support for large scale

deployments)

-- High-grade security and intrusion detection

-- Uncomplicated and rapid hot spot deployment and maintenance

through fully automatic installation and upgrades

Birdstep's IP Zone as Managed Services

Birdstep's wireless access software enables operators and service providers to build revenue-generating Public WLAN services to various customers that do not provide such services as their core business. The IP Zone software suite permits central management of various sites that can range from a small cafe shop to a large enterprise with various offices located in different geographies. With this solution the service provider can approach different business requirements with the same flexible platform to provide either just secure Internet access or more data driven local services such as wireless printing, streaming video and music, or any other service that requires local access control.

Birdstep IP Zone Provides Integrated 802.1x Support

With support for 802.1x IP Zone 2,0 can provide enterprise users with secure automated authentication as well as location based information and services. For large-scale public deployment EAP SIM and other EAP methods can be used to provide automated logon for large user groups.

Birdstep IP Zone Provides Integrated Mobile IP Support

Secure and continuous connectivity between Enterprise Secure WLAN or Public WLAN hotspots and GSM/GPRS/CDMA/UMTS networks is achieved through the integrated support for Mobile IP management by the access controller. This feature allows Mobile IP enabled users to seamlessly move from the WLAN zone to other networks without application downtime or user intervention.

About Birdstep Technology

Birdstep Technology is traded on the Oslo Stock Exchange (OSE) under ticker 'BIRD'. The company has headquarters in Oslo and Seattle in addition to offices in London, Cambridge, Frankfurt, Boston, San Francisco and Shanghai. Birdstep's small footprint, high performance database technologies combined with its wireless roaming and access software enables companies to build innovative solutions for embedded systems and the Mobile Internet. Birdstep makes your information accessible anytime, anywhere, on any device and on any infrastructure. Birdstep's global customers include 3Com (COMS), VERITAS (VRTS), Harman Becker Automotive Systems, HP (HPQ), Accenture (ACN), Telenor (TELN), PCTel (PCTI), Connect One and the National Stock Exchange of India. For more information, visit www.birdstep.com.

This news release contains forward-looking statements, including statements that are subject to certain risks and uncertainties, including, but not limited to, those associated with unpredictability and volatility of the price of Birdstep Technology's Common Stock, the performance of and conditions in the Norwegian and world financial markets, the policies and actions of the Norwegian and other governments, and the general political, economic and business conditions in Norway and elsewhere. Actual results could differ materially, as a result of such factors, from those set forth in forward-looking statements.