Extended Systems Announces Continued Listing on NASDAQ.

BOISE, Idaho -- Extended Systems Incorporated (Nasdaq:XTNDE), a leading provider of mobile application solutions for the enterprise, said today that the Nasdaq Listing Qualifications Panel has notified the Company of its determination to continue listing of the Company's securities on The Nasdaq National Market. Effective Friday, February 25, 2005, the fifth character "E" that has been appended to the Company's trading symbol will be removed and the Company's trading symbol returned to XTND.

As previously announced, Extended Systems had received a Nasdaq Staff Determination notifying the Company that its securities were subject to delisting from The Nasdaq National Market because of its failure to file a Form 10-Q that complied with applicable SEC rules for its first quarter of fiscal 2005 ended September 30, 2004. After engaging Grant Thornton LLP as the Company's independent auditor for fiscal 2005, an amended Form 10-Q/A was filed for the Company's first quarter of fiscal 2005 on January 26, 2005 and a Form 10-Q was filed for its second quarter of fiscal 2005 on February 14, 2005, thereby bringing the Company into compliance with all requirements for continued listing.

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 OneBridge mobile solutions suite enables companies to mobilize critical enterprise applications such as e-mail, field service, sales force automation (SFA), enterprise resource planning (ERP) and customer relationship management (CRM). Extended Systems has more than 2,500 enterprise customers worldwide and key alliance relationships. 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 at www.extendedsystems.com.