Extended Systems Files Action Against Agilent Technologies Singapore Pte. Ltd; Claims Agilent Owes Unpaid Royalties for Resale of Its Embedded Mobility Software.

BOISE, Idaho -- Extended Systems Incorporated (Nasdaq:XTNDE), a leading provider of mobile application solutions for the enterprise, said today that it has filed a lawsuit against Agilent Technologies Singapore Pte. Ltd., a subsidiary of Agilent Technologies, Inc. (NYSE:A), in the United States District Court for the District of Idaho.

Extended Systems' lawsuit asserts Agilent has failed to provide complete or accurate reports of the number of royalty bearing units shipped and failed to make royalty payments required under the terms of a July 2002 agreement with Agilent. Under the agreement, Agilent agreed to pay Extended Systems specific royalties for its IrDA and IrFM software used with Agilent transceivers in Samsung telephones.

Extended Systems alleges that it has fully performed as required under the parties' written agreement, including licensing and supplying Samsung Electronics Co., Ltd. with necessary software to embed IrDA and IrFM components in Samsung's GSM and CDMA cellular telephones. In its lawsuit, Extended Systems is seeking a full accounting from Agilent and recovery of unpaid royalties either based on the number of Agilent transceivers that have been shipped to Samsung that are compatible with Extended Systems' software or based on the number of Samsung cell phones in which the Company's software has been embedded. In order to prevent the continuing misuse of the Company's software, the lawsuit also requests a court order restraining Agilent from continuing to supply transceivers to Samsung that are compatible with the Company's software unless Agilent pays Extended Systems the agreed royalties on all such shipments.

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.