CIDCO MailStation Subscriber Base Grows to Over 23,000.

Business Editors/High-Tech Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--Aug. 7, 2000

CIDCO Incorporated (NASDAQ: CDCO), a worldwide leader in telephony and Internet appliances, announced today that it added over 6000 new MailStation subscribers in July, a 20 percent increase over June, bringing the total subscriber base to 23,500 users.

As consumer demand for simple and affordable e-mail devices continues to grow, more and more retail stores are offering MailStation. In August 6,000 new retail storefronts will begin stocking and selling the MailStation, making it available in over 8,500 stores nationwide by the end of August as compared to 2,500 storefronts in July. Based on market trends, successful growth to date and its robust sales and marketing plans for the upcoming months, CIDCO anticipates serving over 100,000 subscribers by the end of Q4 2000.

"We are very pleased that we achieved our July sales goal of over 6,000 new MailStation subscribers." said Paul Locklin, CIDCO's founder and CEO. "The continued ramp of our marketing campaign and over 8,500 retail storefronts positions the MailStation for strong growth during the critical consumer buying season of late Q3 and Q4."

THE MAILSTATION OFFERS E-MAIL AND MORE

The MailStation offers instant access to e-mail on demand with portability, convenience, and affordability not found 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.

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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements or predictions. These statements represent our judgment as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with economic conditions both domestic and international in the internet and internet appliance industry, failure to successfully implement a national retail distribution channel and a brand marketing campaign, failure to obtain the estimated subscriber growth discussed above, competitive factors, lower than expected consumer product acceptance, technological and business difficulties, government regulations and delays or other problems with product development. These and other factors are discussed in more depth in CIDCO, Inc. filings with the SEC, copies of which may be accessed through the SEC's World Wide Web site at http://www.sec.gov.