CIDCO Extends Retail Presence Through Agreement With CompUSA.

Business Editors, Internet Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--Feb. 22, 2000

America's Largest Computer Superstore Chain To Offer The

MailStation(TM) In 217 Locations Nationwide

CIDCO Incorporated (NASDAQ: CDCO), a worldwide leader in telephony and Internet appliance products and services, today announced that CompUSA, America's Largest Computer Superstore(R) retailer, will soon be offering the MailStation(TM), an e-mail Internet appliance, in all 217 Superstore locations. With Internet appliances becoming widely adopted by consumers, this agreement demonstrates how retail outlets are embracing the MailStation as an ideal product offering for customers desiring new ways of accessing the Internet and sending and receiving e-mail. The relationship with CompUSA correlates CIDCO's channel strategy of bringing the MailStation to consumers across the country via national retail outlets.

"CIDCO's agreement with CompUSA signifies another milestone in bringing our distribution strategy to fruition," said Bill Sole, CIDCO Executive Vice President of Sales and Marketing. "The MailStation has been extremely well received by the consumer marketplace. Complementing our telco and regional retail distribution, we are excited to see national retailers embracing the MailStation as part of their commitment to providing consumers with convenient access to e-mail."

By making the MailStation readily available through CompUSA, CIDCO provides consumers with a new way of communicating with family and friends. Compact, portable, highly affordable and the only true plug and play mass consumer e-mail appliance in the market, CIDCO's MailStation is ideal for a large segment of the population who are either without a PC or who do not wish to use a PC to send and receive e-mail. Capable of operating on AA batteries for portability or via AC, the MailStation only requires connection to any standard telephone jack for immediate sending and receiving of e-mail messages to anyone in the world.

"CompUSA's goal has always been to provide our customers with the latest products that technology has to offer," said Larry Mondry, executive vice president of merchandising for CompUSA. "Internet devices are emerging as popular alternatives to PCs for Internet and e-mail access, and we believe that the MailStation will be well-received by customers seeking this new technology."

The MailStation will be available in all 217 CompUSA Computer Superstores in the March/April 2000 timeframe and will retail for $129.99. Customers will be offered a $30.00 rebate on the purchase of the MailStation that will bring the net price to only $99.99. In addition, the launch will be supported by special displays and advertisements to CompUSA customers.

ABOUT CompUSA

CompUSA Inc. (http://www.compusa.com) is one of the nation's leading retailers and resellers of personal computers and related products and services. CompUSA Inc. currently operates 217 CompUSA Computer Superstores in 84 major metropolitan markets across the United States that serve retail, corporate, government and education customers and include technical service departments. Many of the stores also offer classroom training facilities. CompUSA also offers its own build-to-order personal computer series, the CompUSA PC(TM).

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.

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 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.