Insignia Signs Definitive Agreement with esmertec.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--March 5, 2003

Insignia Solutions(R) (Nasdaq:INSG) and esmertec today announced that a definitive agreement has been signed whereby esmertec acquires all of Insignia's Jeode Java Virtual Machine (JVM) related assets with the exception of Jeode intellectual property. This transaction is expected to be completed in April.

Through this agreement, esmertec becomes the exclusive master distributor of Insignia's JVM business in exchange for a committed revenue stream of $7 million, and a three-year earn-out based on a percentage of future revenues estimated at $4 million. In addition, the parties have entered into a cooperative agreement to promote Insignia's Secure System Provisioning (SSP) software product to esmertec's mobile platform customers. esmertec will manage the existing Insignia JVM customer relationships and license the Insignia and esmertec technologies to sell to the then combined customer base and silicon partners. esmertec will assume the entire JVM business through a final asset purchase in June 2004.

Mark McMillan, President and CEO of Insignia Solutions, commented, "This transaction provides Insignia with a more focused business model, a scalable structure and key relationships for future products roll-outs. We will see many benefits, including an improved financial condition, access to funding, significant reduction in operating costs, increased market access and continued upside potential through the revenue share component of the agreement."

About Insignia Solutions

Insignia provides an essential ingredient to mobile operators and terminal manufacturers by enabling Over-The-Air Repair of a growing complex and diverse community of devices on the network. Insignia's products and services radically reduce customer care and recall costs, maintain device integrity, and enable a wide range of new mobile services. Founded in 1986, Insignia has a long history of innovation, stewardship of major industry standards, and the trust of dozens of manufacturers around the world. Insignia Solutions is traded on NASDAQ under the symbol INSG. The company is headquartered in Fremont, California with R&D and European operations based in the United Kingdom. For additional information about Insignia or its products please visit http://www.insignia.com.

About esmertec

esmertec is the leading software company focusing on Java(TM) and mobile software technologies for handheld systems. Considered to be one of the most important players in the independent VM supplier space, its flagship product, Jbed(TM) ME, certified by Sun Microsystems, delivers high performance computing on small devices to service providers, mobile device manufacturers and application developers. Founded in 1999, esmertec is based in Switzerland with sales, engineering and support offices in the United States and Singapore and representation in Japan.

Note to Editors: Insignia, Insignia Solutions, and the Insignia Solutions logo are registered trademarks and Secure System Provisioning, Over-The-Air Repair, Jeode, and DAC are trademarks of Insignia Solutions, Inc. Sun Microsystems, Sun, Java, EmbeddedJava, PersonalJava, and J2ME are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All other trademarks are the property of their respective holders.

Forward-Looking Statements

The statements in this press release relating to matters that are not historical are forward-looking statements that involve risks and uncertainties. This news release includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those referred to in the forward-looking statements. Such factors include, but are not limited to, the impact of conclusion or postponement of prospective licensing transactions; the impact of weakening economic conditions or perceived conditions on the level of spending by customers and prospective customers on Insignia Solutions' software and services; financial and other impacts of cost control measures; quarterly fluctuations in Insignia Solutions' revenues or other operating results; failure by Insignia Solutions to meet financial expectations of analysts and investors, including failure resulting from significant reductions in demand from earlier anticipated levels; risks that cash generated from operations and financing activities will be insufficient to satisfy Insignia Solutions' liquidity requirements; risk as related to market acceptance of Insignia Solutions' products; impact of long and lengthening sales and implementation cycles for Insignia Solutions' products; satisfaction levels of customers regarding the implementation and performance of Insignia Solutions' products; reliance by Insignia Solutions on a limited number of customers for a majority of revenue; Insignia Solutions' need to maintain and enhance business relationships with systems integrators, licensors and other parties; Insignia Solutions ability to attract and maintain qualified executives and other personnel and motivate employees; Insignia Solutions' use in its products of third-party software; activities by Insignia Solutions and others regarding protection of intellectual property; and release of competitive products and other actions by competitors. Further details on these risks are set forth in Insignia Solutions' filings with the Securities and Exchange Commission, including its most recent filings on Forms 10-K and 10-Q. These filings are available on a website maintained by the Securities and Exchange Commission at http://www.sec.gov. Forward-looking statements in this release are generally identified by words such as "expect," "anticipate," "will," "intend," "believe," "hope," "assume," "estimate," "plan," and other similar words and expressions. Insignia Solutions does not undertake an obligation to update forward-looking or other statements in this release.