IBM and Geotek sign strategic agreement to develop and offer enhanced mobile communications solutions, equipment and software.

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--June 23, 1997--

IBM awarded contract to upgrade Geotek's FHMA(R) System Network

Architecture; IBM intends to market Integrated Mobile Business

Solutions using Geotek and existing IBM services

IBM and Geotek Communications, Inc. (NASDAQ: GOTK) today announced agreements that will position both companies as major providers of integrated mobile communications solutions, equipment and software to business customers in the United States, and in selected international markets. The companies also intend to offer Geotek's Enhanced FHMA(R) Network to telecommunications carriers worldwide.

Enhancement of Geotek's Network Infrastructure

Under the agreement, Geotek and IBM will work together to enhance the existing network architecture supporting Geotek's commercial mobile radio system, which is based on the company's FHMA technology. Based on its present network, Geotek markets a bundled solution of secure wireless mobile voice and data services, equipment and software programs that allow businesses to stay in contact with workers in the field, track vehicles, coordinate pick-ups and deliveries, monitor assets and exchange information.

Geotek has selected IBM as the provider of systems upgrade and integration services that will improve Geotek's existing system infrastructure, currently operating commercially in the U.S. and soon in Korea, ultimately giving it additional capabilities such as open interface with other wireless standards throughout the world. IBM will work with Geotek as the prime contractor to develop and supply key elements including switching and switching control systems for the Enhanced FHMA Network. This contract, which represents the initial phase of the award granted to IBM, has a potential value to IBM of $50 million in the U.S. The potential value of equipment sales to FHMA networks across the globe is more than $150 million.

"The improvements achieved in the FHMA Network in this first phase are intended to position Geotek to realize significant benefits, including increased capacity and speed," said Randall E. McComas, segment executive, emerging markets, IBM Global Telecommunications and Media Industries business unit. "Geotek's FHMA network utilizes the TCP/Internet Protocol and is well known for its robustness, flexibility and the security it enables. We expect our integration of new switching and switching control systems will help further create a platform for more powerful enhancements that will distinguish the Geotek FHMA Network from other mobile data and voice offerings."

Upon completion of integration of the new switching and switching control systems into the Network architecture, Geotek and IBM intend to introduce such features as "roaming" and "hand-off" capabilities that will enable subscribers to operate in different Geotek markets; the ability for the Enhanced FHMA Network to interface with network standards including IS-41, SS7 and Internet Protocol; and, subscriber management, operations, administration and maintenance (OAM) capabilities, such as billing system interface specification.

IBM to market Geotek FHMA Network Solutions

IBM and Geotek have signed a Letter of Intent to market integrated mobile business solutions enabled by Geotek's FHMA Network in conjunction with the marketing of other IBM services and products such as IBM ThinkPads and IBM software applications that would enable customers to access office systems from remote locations, for example. Working together, both IBM and Geotek have identified their first pilot customers in the Northeastern U.S. More than 300 IBM customers in the distribution industry will be targeted in this effort. Within these Northeastern accounts, IBM and Geotek estimate a potential user base of as many as 30,000. IBM has set a goal to secure 25,000 potential users of Geotek FHMA Network solutions. It is the intention of both parties to market solutions to vertical industry segments, and for both IBM and Geotek to dedicate resources.

IBM and Geotek to market Enhanced FHMA Network Systems globally

IBM and Geotek plan to discuss a business relationship to jointly offer the Enhanced FHMA Network infrastructure systems solution - including terminal handsets, solutions, services, and application software - to system operators and carriers on a global basis.

"These technology and marketing initiatives with Geotek are intended to place IBM at the forefront of companies able to offer business customers integrated mobile communications solutions," said McComas. "We are very excited to play a role in enhancing Geotek's FHMA Network, and, more importantly, to potentially offer the powerful solutions enabled by the system to our customers along with our products and services."

IBM offers a portfolio of technologies, services, and solutions that enable wireless carriers to acquire new subscribers, generate new revenue streams, and reduce operational and infrastructure costs.

"Geotek is taking a major strategic step to become the leading mobile business solutions company in the fast-growing global wireless industry. As we strengthen our position in the U.S. and international markets, we could not have wished for a better, or more enthusiastic, IT partner than IBM," said Yaron Eitan, Chairman and CEO of Geotek Communications. "I view IBM's interest in distributing new, integrated solutions based on our FHMA technology as an indication of our expanding business relationship. IBM's distribution channel fits our customer focus."

The agreement and Letter of Intent signed today are the product of a two-year-long relationship between the two companies. In December 1996, Geotek and IBM announced a nationwide marketing agreement, authorizing IBM to sell Geotek's integrated suite of voice and packet data services in conjunction with its own services. IBM has provided Geotek with turnkey site construction and project management in the buildout of Geotek's wireless networks since 1995.

The IBM Global Telecommunications & Media Industries business unit offers a wide range of solutions for telecommunications, cable TV, wireless, broadcasting, publishing, advertising, sports and entertainment industries in more than 160 countries.

Geotek Communications, Inc., based in Montvale, NJ, is an international wireless communications company focusing on integrated voice and data solutions for mobile business users. Geotek currently offers these solutions to customers in Boston, Philadelphia, New York, Miami, Orlando, Tampa, Dallas, Washington, D.C. and Baltimore. The company has been pursuing a region-by-region build-out strategy in the U.S., and has radio spectrum licenses for more than 40 major metropolitan markets, including Houston, Chicago, San Antonio, Phoenix and San Francisco. Geotek's FHMA technology is also being implemented in Korea as the basis of nationwide and regional digital trunked radio networks. -0- For more information on IBM Global Telecommunications and Media Industries visit http://www.telecom-media.hosting.ibm.com/telmedia/ -0- IBM and ThinkPad are trademarks of International Business Machines Corporation in the United States and/or other countries. Other company, product and service names may be trademarks or service marks of others. -0- For more information on Geotek Communications, Inc., visit http://www.geotek.com. FHMA(R) is a registered trademark of Geotek Communications, Inc.

CONTACT: Jim Elder, IBM Randy Miller, Geotek

914/642-5886 201/930-9305

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