Counterpoint Systems Foundry Announces Development of JetWave SDK for Bluetooth Communications Standard.

CORVALLIS, Ore.--(BUSINESS WIRE)--May 25, 1999--

Counterpoint Systems Foundry, Inc., the world's leading provider of infrared communications software for embedded devices and a wholly owned subsidiary of Extended Systems (Nasdaq:XTND), today announced the company has begun development of JetWave(TM) SDK, a product that will enable manufacturers to implement the Bluetooth radio frequency communications standard.

Bluetooth is being developed by an international consortium of companies for use in short-range, wireless communication. JetWave SDK will complement the company's JetBeam SDK, a product used to implement infrared communications between multiple mobile devices. The new product will be available to developers in source code form by year end 1999.

Both Bluetooth and IrDA (Infrared Data Association) standards are used to implement communications and data exchange between cell phones, PDAs, digital cameras, pagers, set-top boxes, instruments, personal computers, and other devices. Because both technologies have strengths in specific areas, many devices will implement both Bluetooth and IrDA standards.

For example, IrDA, with its ability to "point-and shoot" at a specific device, is better for ad-hoc point to point communications in environments with other people and devices. In this situation, the omni-directional capability of Bluetooth would "find" many other devices and require time and user intervention to sort out the intended recipient. However, Bluetooth's omni-directional capability and ability to penetrate solid objects allows for data exchange in environments that are very difficult or impossible with IrDA.

"Bluetooth is a natural extension of our business and the solutions we provide to our customers," said Nathan Pendleton, president of Counterpoint Systems Foundry. "These two technologies complement each other, and each will continue to have rapidly growing markets as the demand for short-distance, wireless communications continues to explode."

Counterpoint Systems Foundry has been active in the Bluetooth SIG's working groups which are defining the Bluetooth standard. JetWave SDK will be an implementation of the Bluetooth standard that leverages the company's expertise in developing robust, small-footprint solutions ideal for embedded software systems in portable electronic devices.

Counterpoint's IrDA infrared solutions have been licensed by numerous companies worldwide including Hewlett-Packard, Motorola, 3Com/Palm Computing, Mitsubishi and Samsung.

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, test tools, services 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 Internet, network and mobile computing solutions. Extended Systems' common stock is traded on the NASDAQ National Market under the symbol "XTND."

Certain matters set forth in this press release, such as Counterpoint's ability to successfully exploit technological and market developments and to penetrate new markets, 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, upgrades to existing products and other risks as detailed from time-to-time in Extended Systems' SEC filings, including its 1998 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q to be filed by the company in fiscal 1999.

Note to Editors: Counterpoint Systems Foundry, JetBeam and JetWave are trademarks of Counterpoint Systems Foundry, Inc. All other trademarks are the property of their respective owners.