CIDCO's Mailstation Continues E-Mail Appliance Category Leadership With 280 Percent Quarter Over Quarter Subscriber Growth.

Business Editors, Technology Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--July 12, 2000

Aggressive Retail Strategy, Integrated Marketing

Keys to Exponential Adoption Rate

CIDCO Incorporated (NASDAQ: CDCO), a worldwide leader in telephony and Internet appliances, announced today that its MailStation user base has grown substantially in the second quarter with a 280% increase in subscribers growth over the first quarter, 2000. The rapid growth in second quarter of 2000 saw 8,500 new MailStation users come online with 5,000 of those adopting the MailStation in June of this year, giving a total subscriber base of 17, 400. CIDCO is in the midst of an aggressive growth period with the MailStation and expects strong monthly growth in subscribers through the balance of this year as thousands of retail storefronts come on board and momentum builds with the national advertising campaign. Based on current results and future plans, the company intends to achieve an excess of 100,000 subscribers by the end of December 2000. CIDCO plans to report subscription results and store front openings each month through the end of this year during this critical growth period.

CIDCO attributes the strong growth to its aggressive retail strategy and national marketing campaign which are now beginning to demonstrate significant results. CIDCO began national retail presence in March and entered Q2 with 1000 outlets, including Staples and Comp USA. Office Depot was added in May bringing retail outlets to 2000 stores. In addition, CIDCO began a national newspaper, print and online campaign in mid-May creating greater awareness of the MailStation and fueling the subscriber growth in June. CIDCO expects to continue increasing subscriber growth in July, even in a traditionally slow retail period as they add about 600 new retail stores including 380 Best Buy stores. Retail storefronts will then triple in August reaching 8,500 outlets with the addition of Radio Shack, Kmart and other major national retail chains. In addition, continuing momentum from the national advertising campaign with the addition of network and cable TV will fuel the subscription rate.

"Our mission is to deliver the most affordable and intuitive personal communications products and services to the broadest audience," said Paul Locklin, CIDCO's founder and CEO. "Our rapidly growing user base illustrates that the MailStation is gaining stature as the device of choice amongst those seeking simple, convenient electronic communication. We are very pleased with the numbers to date and believe that there is further upside forthcoming during the remainder of this year and beyond."

The Mailstation Offers E-Mail and More

The MailStation offers instant access to e-mail on demand with portability, convenience, and affordability not found in traditional PCs or less functional Internet appliances. Designed for flexible communication from anywhere in the home, the MailStation comes ready to use out of the package; just plug it into a standard phone jack and power it up and you're ready to send and receive e-mail from family and friends. E-mail is delivered simply and automatically with the touch of the MailStation's "Get E-Mail" button. CIDCO also provides MailStation users with a diverse selection of Yahoo! branded content. "Our marketing and channel strategies are now beginning to demonstrate the desired results. All critical components are now in place for MailStaion to achieve the projected market penetration," said Bill Sole executive vice president of sales and marketing. " The success we are recognizing is just the beginning and we're extremely pleased that virtually every major consumer electronics retailer has embraced the Internet appliance category and accepted the MailStation as a key product."

About CIDCO Incorporated

CIDCO Incorporated (NASDAQ: CDCO), founded in 1988, is a worldwide leader in Internet and telephony products, services and appliances that empower consumers to communicate simply and easily over advanced telephony networks and the Internet. Through its alliances with many of the world's leading telephone companies, CIDCO develops advanced network appliances such as network feature telephones, Caller ID devices, voice mail navigation appliances and Internet appliances that enable consumers to maximize the value of telephony networks and Internet services. CIDCO introduced its first Internet appliance in 1998 for a world moving into the developing Internet appliance era and is extending this vision to devices that will make e-mail and other information services readily available to consumers that don't have access to or require traditional computers. The company is headquartered in Morgan Hill, California at the south end of Silicon Valley. For additional information, visit www.cidco.com or call [phone].

MailStation and CIDCO are trademarks of CIDCO Incorporated. All other trademarks are the property of their respective owners.