Counterpoint Systems Foundry Acquires IrDA Test Tools From Genoa Technology.

CORVALLIS, Ore.--(BUSINESS WIRE)--Oct. 13, 1998--

Test tools product line complements Counterpoint's embedded

software to provide a complete solution for IrDA development

Counterpoint Systems Foundry, specialists in IrDA infrared communications software, and a wholly owned subsidiary of Extended Systems Incorporated (Nasdaq:XTND), today announced the acquisition of Genoa Technology's IrDA test tools product line.

The products acquired include the SIR Probe, the SIR Scripter, and the IrDA Test System, which are used extensively in the testing and development of infrared products such as printers, notebooks, cell phones, PDAs, digital cameras and medical equipment.

"Delivering test tools and services to the marketplace is part of our strategy to offer more complete solutions to the IrDA developer," said Nathan Pendleton, president of Counterpoint. "We started our testing initiative by becoming an IrDA Test Lab to certify compliance and interoperability between IrDA devices, and now we continue this effort with a superb suite of test tools. Genoa's testing products are recognized as the best IrDA tools available so we are very excited that we can offer them as part of the Counterpoint product family." The Genoa test tools will join Counterpoint's existing line up of JetBeam(TM) IrDA protocol stacks and the QuickBeam(R) IrDA file transfer application.

Jim Zuber, president of Genoa, explained that this transaction was important strategically for both companies. "The sale of Genoa's IrDA testing tools to Counterpoint will provide Genoa with additional funding to aggressively pursue its Total Solution initiative in the printer, MFP, and facsimile testing markets," said Zuber. "I am confident that Counterpoint will expand upon the work that Genoa has done with the IrDA test products and will provide new and exciting test capabilities to the IrDA community".

Counterpoint already offers test tools specifically tailored for its JetBeam protocol stack while the Genoa tools have a broader reach and are used by developers doing any type of IrDA project. "Counterpoint is committed to bringing complete and innovative solutions to the IrDA developer and in the next 60 to 90 days we will provide a roadmap for a new combined test tools product line," said Pendleton.

The Genoa IrDA test tools consist of the IrDA Test System, a comprehensive test suite of almost 600 tests that verify basic IrDA functionality; the SIR Scripter, a test case generation tool which simplifies creation of custom tests for validating IrDA conformance; and the SIR Probe, an IrDA protocol analyzer consisting of a hardware probe and software analysis tool to debug and test IrDA products. Counterpoint will begin providing and supporting the Genoa product lines immediately. For more information, please contact Counterpoint Systems Foundry directly at 1-800-613-6035.

About Counterpoint Systems Foundry

Headquartered in Corvallis, Ore., 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 (IrDA) community and the Company continues to author, extend, and promote the IrDA standards. Counterpoint operates as a wholly owned subsidiary of Extended Systems Incorporated. For more information, please contact Breton Buckley at Counterpoint Systems Foundry, Inc., 409C Alberto Way, Los Gatos, CA 95032. Telephone: [phone]. Fax: [phone]. Email: [e-mail]. Web: www.countersys.com

About Genoa Technology

Genoa Technology, Inc. is a world leader in the design, development, and marketing of test solutions for printer, scanner, facsimile, telephony and connectivity technologies. The company focuses on forming strategic partnerships to help their customers bring high-quality products to market quickly, by providing total customized test solutions to meet their testing needs. Genoa has extensive capability to develop comprehensive turn-key test solutions that customers find difficult or too costly to develop themselves. Genoa*s products and services are used today by hundreds of OEMs in the computer and communication industries. Many of Genoa's products have become accepted as the de facto standards for testing. Founded in 1986 by Jim Zuber and Gary James, Genoa has offices in the US and Romania. For more information, please contact Laura Posson at Genoa Technology, Inc., 5401 Tech Circle, Moorpark, CA 93021. Telephone: [phone]. Fax: [phone]. Web: www.gentech.com

About Extended Systems

Extended Systems designs, develops and sells distributed and mobile computing solutions that address the needs of the virtual enterprise. The Company's products include a virtual private network (VPN) remote access server, an Internet access server, network print servers, a database management system with remote access capabilities, IrDA-compliant wireless connectivity products, and infrared software and port replicators that connect portable computers to desktop peripherals and the network. Extended Systems, founded in 1984, currently employs over 270 people worldwide and has an extensive domestic and international distribution network. Extended Systems has offices in the U.S. and Canada and wholly-owned subsidiaries in France, Germany and the UK.

Extended Systems' common stock is traded on the Nasdaq National Market under the symbol "XTND". For more information, please contact Joanne Eshow at Extended Systems, Inc., 5777 North Meeker Avenue, Boise, ID 83713. Telephone: [phone]. Fax: [phone]. Web: www.extendedsystems.com

(Except for historical information contained herein, the matters set forth in this press release, such as Counterpoint's ability to successfully exploit market developments and the timing and success of new product introductions by Counterpoint 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.)