Counterpoint Systems Foundry's IrDA Software Incorporated into the HP CapShare 910.

CORVALLIS, Ore.--(BUSINESS WIRE)--Nov. 4, 1998--

Counterpoint's JetBeam(TM) Infrared Protocol Stack Enables

Fast and Reliable Beaming of Captured Hardcopy Images to

a Printer, a Smart Phone or PC

Counterpoint Systems Foundry, a wholly-owned subsidiary of Extended Systems, Inc. (Nasdaq:XTND), announced that Counterpoint's JetBeam infrared protocol stack has been implemented in a new information appliance from Hewlett-Packard Company.

The HP CapShare 910 information appliance is a handheld device designed to make it easy for mobile professionals to capture, store and share documents. With Counterpoint's IrDA (Infrared Data Association) software, the device can wirelessly beam documents to a printer, smart phone or PC.

Using the 12.5 ounce appliance with a free-form, swiping motion, users can electronically copy up to 50 letter-size pages in black and white from virtually any flat hardcopy document. CapShare page processing re-creates the document in as little as six seconds and shows a thumbnail of the image on the built-in liquid crystal display.

Once captured, the document can be sent directly via infrared port to a printer, PC or smart wireless handheld device, where it can then be printed, e-mailed or e-faxed.

"The easy-to-use infrared capability of the HP CapShare 910 is an important element of its design," said Irv Christy, product introduction manager for HP's Portable Capture and Communication operation. "We chose to incorporate Counterpoint's JetBeam stack into the device because the appliance requires a stable and reliable infrared solution."

The JetBeam IrDA protocol software stack supports walk-up, point-to-point connection with other devices. At speeds up to 4 Mbps, JetBeam provides an infrared connection 35 times faster than the machine's optional serial port.

Because it conforms to IrDA 1.1 standards, it supports a wide class of computing devices and peripherals used by mobile professionals. HP has also incorporated Counterpoint's IrOBEX (IrDA Object Exchange) in the HP CapShare 910. IrOBEX is an add-in module which runs on top of the JetBeam stack.

"The HP CapShare 910 is the first of a new class of information appliances," said Nathan Pendleton, president of Counterpoint.

"By using Counterpoint's software, the HP CapShare 910 gives mobile professionals the ability not only to capture printed documents with ease, but to share them with ease using infrared. The benefits of infrared are convenience and simplicity, and that's exactly what the HP CapShare 910 provides."

Counterpoint's JetBeam product is an infrared protocol stack that complies with the Infrared Data Association 1.1 specification. Packed into less than 30K of ROMable code, JetBeam is a complete IrDA communications stack, with IrLAP, IrLMP, IAS, TinyTP, and IrLPT (3-wire raw).

In addition to its IrOBEX add-in module, Counterpoint provides other modules that run on top of JetBeam which implement the IrDA's IrCOMM, RTCON and IrTran-P specifications. JetBeam is designed specifically for the embedded market so it is small, configurable, highly reliable, and has been ported to numerous embedded operating systems

About Counterpoint Systems Foundry

Headquartered in Corvallis, Counterpoint is a leading provider of IrDA infrared communications software. Founded in 1995, Counterpoint provides leading-edge, efficient, and high-quality infrared communications software and applications. Counterpoint's founders are pioneers of the Infrared Data Association community, and the company continues to author, extend, and promote the IrDA standards.

Counterpoint operates as a wholly-owned subsidiary of Extended Systems, Inc. Extended Systems designs, develops and sells distributed and mobile computing solutions, including servers, database management systems with remote capabilities, IrDA-compliant wireless connectivity products, and infrared software and port replicators. Extended Systems' common stock is traded on the NASDAQ National Market under the symbol "XTND."

For more information, please contact Breton Buckley at Counterpoint Systems Foundry, Inc., 409 C Alberto Way, Los Gatos, CA 95032. Telephone: [phone]. Fax: [phone]. E-mail: [e-mail]. Web: www.countersys.com.

Note to Editors: JetBeam is a trademark of Counterpoint Systems Foundry, Inc. All other products are the trademarks, service marks, or registered trademarks of their respective holders.

Except for historical information contained herein, the matters set forth in this press release, such as Counterpoint's ability to successfully exploit market developments are forward-looking statements that are subject to risks and uncertainties. These include the impact of competitive products and pricing, alternative technological advances, the timely and successful development and market acceptance of new products and upgrades to existing products.