CIDCO demonstrates iPhone, first phone with graphical Web access; brings e-mail, Web, Internet and advanced telephony features to consumers for under $500.

LAS VEGAS--(BUSINESS WIRE)--Consumer Electronics Show--Jan. 8, 1997--The first telephone to provide graphical access to the Internet together with advanced telephony services, the iPhone, is being demonstrated to the general trade Jan. 9 for the first time at the Consumer Electronics Show (CES) by CIDCO Inc. (NASDAQ:CDCO), the market leader in Caller ID and smart screen phone devices.

The iPhone will sell for under $500 and offers direct, simple access to Internet services, bringing e-mail and the wealth of information on the Web to both nontechnical and more computer-savvy consumers.

The telephone is the most common appliance in the home. The Electronic Industries Association reports there is a phone in approximately 95 percent of all U.S. residences, and an average of 2.4 phones per household.

The iPhone combines this familiarity in a high-end speaker phone with e-mail, graphical access to the World Wide Web and advanced telephony features, according to Robert L. Diamond, CIDCO chairman of the board.

The Internet connection is made through a PC-quality 7.4-inch grayscale touch screen embedded on the face of the iPhone that allows users to access Internet services simply by touching the softkeys. With a full VGA screen, a complete Web page can be viewed at one time without scrolling, as is commonly required with some text-based phones.

iPhone users touch the icons and buttons displayed on the screen in place of using a mouse to navigate through the Web. A QWERTY keyboard slides from under the console for ease in composing, sending and receiving e-mail.

The iPhone is plug and play. There is no setup required, no software to load or any programs to execute in initiating operation. Since it is constantly powered up, the iPhone offers an immediate connection to the Internet without waiting for the system to boot or load software.

"The iPhone is the first appliance that unleashes the power of the Internet for the general consumer who might not be computer savvy and for small business entrepreneurs not currently using the Web," Diamond said.

"Whether or not they are familiar with PCs, iPhone users can send and receive e-mail, research data or bank on-line with ease. At home, consumers will have inexpensive access to e-mail, can look up information on local stores, find a good restaurant in the neighborhood or search for a favorite recipe on the Internet, just by touching the iPhone screen," he said.

Available Second Quarter of 1997

Approximately the size of a standard business phone console, 11.5 inches wide by 8 inches long, the iPhone will be sold through telephone companies and selected retail outlets. Field tests are scheduled for early 1997, with general availability mid-1997.

The iPhone was co-developed by CIDCO and InfoGear Technologies, a Redwood City, Calif., high-technology company. CIDCO is contributing its advanced telephony technology to the product development and is manufacturing and marketing the iPhone. InfoGear is providing the client/server software, the browser and other elements of the user interface. CIDCO holds an equity share in InfoGear.

Similar to the way PC users access the Internet, telephone companies and on-line providers will supply the Internet connection service for the iPhone. Some phone companies may bundle access at a reduced rate with other telephone services, according to Diamond.

"Telephones are the primary instrument of communication in our society, the gateway that keeps the flow of information moving in our world," Diamond said. "So it's only natural that a telephone, the iPhone, would bring e-mail and the richness of the Internet to consumers."

Supports Class and Advanced Telephone Network Services

Telephone network services such as Caller ID, Caller ID on Call Waiting, and Caller ID Deluxe with name and phone number display will be supported in the first consumer release. One-touch access will be provided for Call Forwarding, Call Blocking and Last Call Return, among other custom calling features. The iPhone also has a programmable speed dial, a 500-name directory, speed dial from the directory, and visual message notification for Caller ID, e-mail and voice mail.

With its 16-level grayscale display and software preprocessing of some data, the 14.4 BPS modem in the iPhone functions at speeds comparable with a 28.8 BPS modem. The 640 X 480 backlit touch screen supports full Web page graphics. The iPhone also includes a serial port for a printer.

CIDCO, with headquarters in Morgan Hill, Calif., is the world's leading producer of subscriber terminal equipment that supports intelligent network services being offered by telephone operating companies. Its products, of which over 12 million have been sold, include network feature telephones and Caller ID display units, in addition to advanced cordless telephone and smart screen phones utilizing ADSI technology.

These products are provided to telephone subscribers through a variety of channels, including distribution arrangements with more than 100 telephone companies worldwide and through retail sales at more than 20,000 store fronts located throughout North America. -0-

NOTE TO EDITORS: Additional artwork, electronic artwork files and B-roll available on request.

CONTACT: Linda Marcus

Creamer Dickson Basford

714/260-4768

[e-mail]

or

Peter Van Rossum

Creamer Dickson Basford

714/260-4765

URL: http://www.cidco.com