Court to Hear Extended Systems' Motion to Exclude Pumatech Expert Report; Favorable Ruling Would Prohibit Pumatech from Claiming Monetary Damages at Trial.

Business Editors/High-Tech Writers

BOISE, Idaho--(BUSINESS WIRE)--Dec. 16, 2003

Extended Systems (Nasdaq:XTND) announced today that it has filed a "Daubert" motion in its litigation with Pumatech (Nasdaq:PUMA) asking the District Court for the Northern District of California to exclude the expert damages report submitted by Pumatech. If the Court rules in Extended Systems' favor on this motion, Pumatech would not be able to ask for any monetary damages at trial in April.

After evaluating the report submitted by Pumatech's damages expert, Extended Systems brought the "Daubert" motion because the report contained a number of serious flaws including the calculation of damages on some patents before they were issued. The report also calculates damages based on Extended Systems' worldwide sales, even though Pumatech's method patents are only enforceable if the patented method is used in the U.S.

Under the U.S. Supreme Court's decision in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993) ("Daubert"), a court serves a gatekeeper function and must determine if an expert's methodology is reliable, whether that methodology was applied reliably to the facts, and whether the testimony will be relevant and helpful to the jury at trial. In its motion, Extended Systems argues that the Pumatech expert report would mislead and confuse a jury because it does not elucidate a sound damages theory.

"Pumatech's expert has put forward a report that includes inaccurate and illogical analysis that is not supported by the facts," said Extended Systems CEO and President Charles Jepson. "Our defense has focused on providing evidence of serious flaws with the Pumatech patent portfolio and their assertions that Extended Systems is infringing any valid claims of the asserted patents. We are confident that the Court will ensure that only the facts will be presented in this case and that expert opinions not supported by the facts or by sound analysis will be excluded from the proceedings."

This announcement follows several other positive developments for Extended Systems in the Pumatech patent litigation. Last week, the company announced that the Court has granted its motion for summary judgment of non-infringement of Pumatech's U.S. Patent No. 5,943,676 ("the '676 patent) and that the Court granted Extended Systems' motion to amend its defenses under the suit to include inequitable conduct against Pumatech. Three of Pumatech's patents (U.S. Patent Nos. 5,392,390, 6,141,664, and 6,212,529) are currently being reexamined by the U.S. Patent & Trademark Office ("PTO") based on petitions filed by Extended Systems earlier this year. In August, Extended Systems received a positive ruling regarding claim construction for six of the eight patents involved in the patent infringement action. The trial is scheduled to commence on April 12, 2004.

About Extended Systems

Extended Systems provides the expertise, strategy and solutions to help enterprise organizations streamline their business processes through mobile technology. The company's mobile solutions suite enables companies to mobilize critical enterprise applications such as e-mail, field service, sales force automation, enterprise resource planning, and customer relationship management. Extended Systems has more than 3,000 enterprise customers worldwide and key alliance relationships with Ericsson, HP, Handspring, Microsoft, Motorola, Nokia, PalmOne, Sharp, Siemens, Symbian and Toshiba.

Founded in 1984, Extended Systems has offices and subsidiaries in the United States and worldwide. For more information, call 1-800-235-7576 or visit the company Web site.

This press release contains forward-looking statements regarding the company's litigation with Pumatech and potential liability as a result thereof, including statements concerning the possible results of Extended Systems' motion to exclude the Pumatech damages expert's report, Pumatech's ability to seek monetary damages if such report is excluded, the Court's exclusion of opinions that are not supported by sound analysis or by the facts, the possible results of a successful inequitable conduct defense at trial, the outcome of the PTO's reexamination of three of Pumatech's patents, and Extended Systems' belief in a favorable outcome for the company in this litigation. These statements are subject to risks and uncertainties. These risks and uncertainties include the risks and uncertainties associated with patent litigation, the possibility that the Court will not exclude the report from trial, the possibility that the company's counterclaims and affirmative defenses may not be successful, the possibility that the PTO may not rule in Extended Systems' favor in the reexamination of Pumatech's patents, and other risks as detailed from time-to-time in the company's SEC filings, including its 2003 Annual Report on Form 10-K filed September 29, 2003, and Quarterly Reports on Form 10-Q to be filed in fiscal 2004.