Extended Systems Licenses Bluetooth(R) Software to STMicroelectronics; Complete, Ported, Single-Chip Hardware and Software Bluetooth Solution Offered to Handset Manufacturers.

SINGAPORE -- Extended Systems (NASDAQ:XTND), a leading provider of mobile software solutions, announced today during 3GSM World Congress Asia that STMicroelectronics, a leading chip vendor and one of the world's leaders in Bluetooth radios, has licensed the company's Bluetooth protocol stack and profiles. STMicroelectronics will now offer Extended Systems' technology to its STLC2500 Bluetooth Radio and Digital Baseband customers. The agreement enables STMicroelectronics to directly offer ported, industry-validated and complete single-chip Bluetooth solutions to its handset, consumer electronics, and automotive customers, enabling them to bring new products to market quickly.

Extended Systems' Bluetooth software consists of the core protocol stack plus application level profiles that make Bluetooth wireless communications possible. All software is compliant with the Bluetooth Special Interest Group's specifications, ensuring device manufacturers that their products will adhere to industry standards. With hundreds of design wins, Extended Systems has become a world leader in providing Bluetooth protocol stack and application profile technology. STMicroelectronics is the latest chipset company to have licensed Extended Systems' Bluetooth wireless technology.

"The STLC2500 is an optimal fit for cellular phones and portable applications while Extended Systems' Bluetooth software has an impeccable reputation among handset providers," said Jacques Wenin, Director of Bluetooth Business Unit at STMicroelectronics. "By providing the two together, we feel we are offering our customers an industry validated and world-class solution."

In addition to licensing the core protocol stack from Extended Systems, STMicroelectronics has also obtained rights to Extended Systems' Bluetooth application profile software. This includes the profiles for Headset, Hands-Free, Human Interface Device, Basic Imaging, Basic Printing, Hardcopy Cable Replacement, SIM Access, TCS Binary, Serial Port, Object Push, Generic Object Exchange, and File Transfer. Also provided as part of the core protocol stack is Extended Systems' Multi-Transport OBEX. This unique implementation of the Object Exchange protocol allows applications to use a single instance of OBEX to communicate over different transports such as Bluetooth, IrDA, or cable connections. The OBEX protocol is used in Generic Object Exchange, Object Push and other profiles. This complete software offering will enable STMicroelectronics to meet the needs of virtually any product requiring Bluetooth communications.

Nathan Pendleton, Extended Systems' Vice President, Mobile Device Solutions explains, "The relationship with STMicroelectronics provides a way to expand our Bluetooth business into additional markets. With operations around the globe, STMicroelectronics can provide direct sales and support to their worldwide customers with a complete hardware and software solution."

About Extended Systems' Mobile Device Solutions

Extended Systems' software development kits (SDKs) for Bluetooth and IrDA wireless technology, OMA Data Synchronization, OMA Device Management, test tools, and mobile device to PC synchronization software help manufacturers integrate wireless connectivity and synchronization into devices such as mobile phones, PDAs, printers, and medical devices. With over nine years experience working in wireless networking protocols and hundreds of design wins, Extended Systems has amassed extensive expertise in providing technically robust and easy to integrate SDKs to mobile device OEMs and ODMs.

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.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including statements relating to STMicroelectonics' product offerings containing Extended Systems' technology; the benefits, capabilities, significance and expected success of Extended Systems solutions and the positive implications of those solutions on the timing of bringing products to market and fulfilling customers' Bluetooth demands; and Extended Systems' expected expansion of its Bluetooth business into additional markets. These statements are subject to risks and uncertainties. These risks and uncertainties include uncertain rates of adoption of Extended Systems' and its' partners products and services; the success of Extended Systems' customer relationships and other key business relationships; overall economic conditions and the level of information technology spending by existing and potential customers; the timing of purchases by significant customers; the timely development and acceptance of new products and technologies; the risks associated with development of new products and product enhancements; the impact of competitive products and pricing; continued growth in the markets for our products; and other risks as detailed from time-to-time in Extended Systems' SEC filings, including its 2004 Annual Report on Form 10-K filed on September 29, 2004 and 2005 Quarterly Reports on Form 10-Q.

The Bluetooth word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Extended Systems is under license. Other trademarks and trade names are those of their respective owners.