Glenayre, SkyTel to Provide Wireless Access to Handspring Visor Community.

Business Editors

CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug. 28, 2000

SkyTel to be Prime Carrier for @ctiveLink(TM) Units sold

Via Handspring Store within PalmGear Website

Glenayre Technologies Inc. (NASDAQ: GEMS) and SkyTel, a WorldCom company, today announced that the companies have joined together to provide wireless connectivity to handheld computer users. Through a recently signed agreement between the two companies, SkyTel will be the prime service provider for all Glenayre @ctiveLink(TM) two-way wireless messaging modules sold through a special Handspring store within the PalmGear website at http://hs.palmgear.com. The @ctiveLink module initially will be bundled with the Handspring(TM) Visor(TM) handheld computer for sales on this site.

The agreement brings two leaders of the wireless industry into the explosive handheld computing market and, for the first time, provides Visor users wireless connectivity to ReFLEX(TM) data networks. The untethered access given to Visor users via the @ctiveLink module and SkyTel networks will allow mobile workers and consumers to have unmatched access to messages and data through their handheld device.

Glenayre's @ctiveLink module snaps seamlessly into the Visor Springboard(TM) expansion slot, wirelessly enabling the powerful personal information management utilities of the Visor. It provides users with Always @ctive(TM) -- not session-based -- connectivity to ReFLEX networks, whether or not it is inserted in the Visor. This means the user does not have to "log on" to the network and the module is constantly receiving messages.

The @ctiveLink operates on ReFLEX networks -- high-speed wireless data networks that allow for two-way interactive messaging between wireless devices. Unlike other wireless networks, ReFLEX networks have the broadest nationwide coverage and superior in-building penetration ensuring that subscribers will receive their messages in almost any location. SkyTel provides a variety of services via ReFLEX networks to millions of customers in the United States and Latin America.

In addition to agreeing to be the exclusive service provider for devices sold through this website and as a show of its commitment to the @ctiveLink module as well as other Glenayre wireless devices, SkyTel has agreed to purchase over 200,000 Glenayre two-way devices, which may include a combination of Glenayre's @ctiveLink modules and the company's AccessLink(TM) II two-way wireless messaging devices, over the next two and one-half years.

"This agreement is part of Glenayre's strategy for leadership in wireless unified messaging, continuing our focus on developing partnerships and finding new markets to bring 'Solutions for an @ctive World(TM)' to the mobile community. As a wireless data and messaging pioneer, SkyTel has always had a unique understanding of and commitment to the wireless marketplace. The company obviously recognizes the potential in providing wireless connectivity to a rapidly expanding Visor user community," stated Eric Doggett, President and Chief Executive Officer. "Through this agreement Visor consumers will achieve the ultimate goal of all mobile, hand-held computer users -- the ability to wirelessly communicate and stay connected through their handheld computer at any time and from almost anywhere via the @ctiveLink module and SkyTel's ReFLEX network."

Robert Kaiser, President and CEO of SkyTel, stated, "SkyTel is excited to be working with Glenayre to bring wireless connectivity to Handspring Visor users. We believe that our network, in conjunction with the powerful @ctiveLink module, will bring unparalleled wireless service to Visor users. SkyTel is committed to providing wireless services for the @ctiveLink and the personal communication device market."

Handspring sells its Visor line of handhelds at Handspring.com and through select Internet and retail partners, including Amazon.com and national retailers Best Buy, Comp USA and Staples in the U.S. In addition, Handspring is selling its Visor line of handhelds in Canada, Europe and Japan, along with a line of Springboard expansion modules and accessories. SkyTel serves 70 percent of the Fortune 500 companies and has distribution points that include an online store as well as agreements with nationwide retailers.

About Glenayre:

For more than 35 years, Glenayre has developed and provided leading-edge personal communication systems for the global market. We are focused on delivering our Solutions for an @ctive World(TM) portfolio, leveraging core competencies in the converging sectors of the wireless Internet and unified messaging. Our wireless messaging products and systems include one- and two-way paging infrastructure equipment; award-winning Always @ctive(TM) two-way pagers; an array of Enhanced Services Platform products featuring voice mail, fax messaging, voice-activated services, personal one-number services; and debit/prepaid calling card platforms. Glenayre, headquartered in Charlotte, North Carolina, has 1,300 employees located in 14 countries with 1999 net sales exceeding $238 million.

For more information on Glenayre, its products, and services, visit http://www.glenayre.com.

About SkyTel:

SkyTel, a WorldCom company, provides traditional paging, text messaging, and interactive two-way messaging and telemetry services throughout the U.S. and Latin America. WorldCom (NASDAQ: WCOM) is a global leader in "all-distance" communications services with operations in more than 65 countries. Revenues in 1999 were $37 billion, with more than $15 billion from high-growth data, Internet and international services. WorldCom provides facilities-based and fully integrated services to facilitate e-business and e-commerce in the digital generation. For more information go to http://www.wcom.com or http://www.Skytel.com.

Glenayre, the Glenayre logo, Solutions for an @ctive World, the Solutions for an @ctive World logo, @ctiveLink and Always @ctive are trademarks of Glenayre Electronics, Inc.

Handspring, the Handspring logo, Visor and Springboard are trademarks or registered trademarks of Handpring, Inc. in the U.S. and in other countries.

Reflex is a trademark of Motorola, Inc.

Note to Editors:

This release should be read in conjunction with reports filed by the Company pursuant to the Securities Exchange Act of 1934, as amended. This release contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of any number of factors, including, but not limited to, intensity of competition, customer attrition, disruption of local telephone services, technological obsolescence, cost of technology, the availability of third-party billing solutions, the availability of financing, the effects of regional economic and market conditions and increases in marketing and sales costs.