CIDCO Subscriber Base Doubles in Q4; More Than 110,000 Units Sold to Date.

Business Editors/High-Tech Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--Jan. 4, 2001

More Than 30,000 Additional Customers Expected

to Activate Subscriptions This Month

CIDCO Inc. (Nasdaq:CDCO), a worldwide leader in personal Internet communications products, today announced that MailStation subscribers totaled more than 78,000 as of December 31 and that more than 30,000 additional units sold to consumers were pending activation. Approximately 26,000 subscriptions were activated during December.

"We expect the vast majority of those additional customers to activate their subscriptions in the next few weeks as holiday gift recipients sign up for our services," said Paul Locklin, president and chief executive officer. "That would put us well over our goal of 100,000 subscribers, although a few weeks later than we anticipated. Nevertheless, with more than 110,000 MailStation units now in the hands of consumers and with subscribers more than doubling once again over the previous quarter, the holiday season was the success we expected."

Locklin said that holiday sales results confirmed the effectiveness of the recent advertising and promotional program that ran nationally. "In addition to stimulating sales, we feel we've established a high level of awareness and positioning that provides a solid marketing foundation as we introduce our next suite of Internet appliance products." Next-generation products with additional capabilities will be introduced and added to the product line-up shortly, said Locklin.

CIDCO's industry-leading MailStation has gained stature as the ideal e-mail appliance, allowing anyone to get connected with friends and family via e-mail. 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 anywhere in home, the MailStation comes ready to use by simply plugging it into a standard phone jack.

ABOUT CIDCO INCORPORATED

CIDCO Incorporated (Nasdaq:CDCO), founded in 1988, is a worldwide leader in personal Internet communications products and services that empower consumers to communicate simply and easily over the Internet. 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 Internet-based information readily available to consumers that don't have access to traditional computers or who prefer the convenience of e-mail when and where they want. As the innovator of caller ID and having originated the E-mail Internet appliance category with the launch of the MailStation, CIDCO takes a unique approach with its offerings by providing integrated products and services in a seamless manner. CIDCO allows for a better user experience through this approach, and as a result its industry leading MailStation is gaining stature as the device of choice amongst those seeking simple, convenient and affordable electronic communication as illustrated by the rapidly growing user base. The company is headquartered in Morgan Hill, Calif. at the south end of Silicon Valley. For additional information, visit www.CIDCO.com or call 408/779-1162.

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.