CIDCO Appoints Kevin Flaherty as Vice President of US Retail Sales.

Business Editors & High-Tech Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--March 13, 2000

CIDCO Incorporated (Nasdaq:CDCO), a worldwide leader in Internet appliances and telephony, has named Kevin Flaherty as vice president of US retail sales. Flaherty will report to Bill Sole, executive vice president of worldwide sales and marketing, and will be responsible for developing the retail channel of the MailStation Internet appliance and follow-on products. Flaherty is also chartered with building a retail sales team that will manage and maintain partnering relationships.

Flaherty brings 18 years of sales and strategic marketing experience to CIDCO. Flaherty was previously a general sales manager for North American operations of MAG Technology USA Inc. and vice president of retail sales and marketing for NOKIA. He is recognized for raising Nokia's visibility in the retail monitor market from an unknown name to a dominant entity through extensive exposure with retailers throughout the US and Canada. Flaherty has also held vice-president and divisional vice-president positions at Best Buy and CompUSA. During his 10 year tenure at Best Buy, where he held senior management positions, Flaherty was instrumental in the growth of the overall company from an emerging retailer to one of the largest and most respected computer retailers in the United States.

"We are delighted to have Kevin on board. His extensive experience within retail as well as his expertise in building retail channels for computer related products will bring a unique and invaluable vision to CIDCO," said Bill Sole, executive vice president of worldwide sales and marketing. "We have every confidence that his expertise will accelerate the momentum of our MailStation activities through retail channels.

Flaherty is joining CIDCO during a time of tremendous innovation and growth. In 1999, CIDCO introduced the MailStation, the industry's first dedicated e-mail Internet appliance. Since MailStation's introduction, the popularity of simple e-mail devices has experienced strong growth. In 2000, CIDCO will aggressively expand its retail channel penetration to make MailStation broadly available in the consumer market. CIDCO's first step to make the MailStation available across the United States has been realized by signing on CompUSA, Good Guys and Staples.

"CIDCO has quickly made its innovative technology the defacto standard in the Internet appliance marketplace and I am excited to join the company during a time of phenomenal growth," said Flaherty. "With this market expanding rapidly, it is an opportune time to assist in the next phase of advancing the company's industry position to further heights. In addition, I am looking forward to sharing my visions and ideas to increase the retail strategy and establish a strong sales force that will bring the MailStation and the follow-on products to our customers."

With the explosive growth of e-mail, the MailStation is at the forefront of a new era of communications by giving consumers access to e-mail without the hassle, expense, or technology know-how it takes to use a personal computer. The MailStation provides consumers with a simplified means of communicating with friends and family anywhere in the world through e-mail. CIDCO's MailStation is ideally priced for the mass consumer population at only $9.95 monthly Internet service fee and $99.99 for the MailStation, after $30 mail-in rebate.

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 408/779-1162.

In addition to the historical information contained herein, statements in this press release may contain forward-looking statements within the meaning of the Federal securities laws and are subject to the safe harbors created thereby. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: business conditions in the telecommunications industry and general economies, both domestic and international; lower than expected customer orders and/or average selling prices; failure to successfully implement a national retail distribution channel and a brand marketing campaign; failure to obtain significant subscriber growth; failure to successfully execute on restructuring plans or revised business strategies; competitive factors; lower than expected consumer product acceptance; changes in product mix or distribution channels; natural disasters/acts of God; and technological difficulties and resource constraints encountered in developing and/or introducing new products. Forward-looking statements contained in this press release regarding expected financial results, industry trends, sales and future product development and business strategies and activities should be considered in light of these factors and those factors discussed from time to time in the Company's public reports filed with the Securities and Exchange Commission, such as those discussed under "Factors That May Affect Future Results" in the Company's report on Form 10-K for the year ended December 31, 1998, and its Form 10-Q for the quarter ended September 30, 1999.

Note to Editors: MailStation and CIDCO are trademarks of CIDCO Incorporated. All other trademarks are the property of their respective owners.