PacketVideo Provides Mobile Video Technology and Applications for Sonera's Commercial Mspace Mobile Consumer Trial.

Business Editors/High-Tech Writers

HELSINKI, Finland--(BUSINESS WIRE)--Dec. 13, 2000

World's First Revenue-generating Mobile Video Consumer Trial Brings

Compelling Video Content and Applications to Finland

PacketVideo Corporation, the global leader in wireless media, today announced that it is providing mobile video technology and consumer-friendly applications for the Sonera (HEX:SRA, Nasdaq:SNRA) Mspace advanced mobile telephone trial throughout Finland.

The Mspace trial has paying consumers participating from October 10 - December 22, 2000. Before the start of the trial, the demand to take part was so high that lines of consumers eager to have access to next generation mobile video services formed outside of Sonera's offices to sign up.

Highlights of the Sonera trial include:

-- World's first commercial wireless multimedia trial to paying customers;

-- Point-and-click, consumer-friendly wireless multimedia applications;

-- System-wide video and audio access throughout Finland;

-- Rich multimedia from a variety of content providers with daily updates; and

-- Ability for consumers to personalize the content and applications.

"Our work with PacketVideo is part of our ongoing development initiative to find out exactly why and how consumers will use next generation mobile multimedia services," says Pekka Keskiivari, vice president of Sonera Mspace. "Mspace is a unique test environment that goes far beyond the traditional technology trial approach, by putting new technology in the hands of the public as soon as possible in the development cycle. This is critical, as it allows Sonera to shape future service offerings based on accurate knowledge of how consumers will use advanced mobile services as they come on stream. We chose PacketVideo as our technology partner because it is has an end-to-end system, is ahead of the technology wave, has industry leading experience in mobile video and employs MPEG-4 standards-based solutions. The early feedback from the trial clearly indicates that there will be a market for mobile multimedia services, and that our collaboration with PacketVideo has helped us in gaining a leading-edge position in this emerging field."

The trial includes multimedia content from a variety of providers in categories that cover culture, music, news, travel and sports. Consumers can choose which categories are offered through their personalized home page and even increase this personalization by only receiving information from certain content providers within these categories. PacketVideo and Sonera worked together to source compelling content from global media and Internet companies.

Sonera has built a movie application for the trial that shows exactly how compelling video can be. In this personalised application, consumers can watch movie clips, browse for information on the movies, and check when the movie is showing in their hometown.

PacketVideo created another application for the trial that offers a bulletin board capability where consumers can join electronic mobile communities and debate topics on video with others of similar interests and passions. By producing applications that link several forms of relevant information and video into one carefully designed package, consumers receive the greatest possible added value.

"By working together, Sonera and PacketVideo are finding out just how consumers want to view video on the move and how compelling rich media applications and extra features such as personalization really are," said Jim Cook, general manager of PacketVideo Europe. "Not only is this trial one of the largest we have ever undertaken with our end-to-end technology, but it also takes the consumer experience to a new level of interactivity with our bulletin board application. Based on the knowledge we gained from this trial, PacketVideo and Sonera are well positioned to be the leading providers of wireless enhanced services as interacting with video through wireless devices becomes an everyday experience."

The wireless multimedia trial uses PacketVideo's end-to-end MPEG-4 wireless multimedia distribution platform to enable the delivery of rich media to consumers taking part in the Mspace trial. The multimedia content is delivered over Sonera's high speed circuit switched data (HSCD) network to a combination of a Nokia 6210 phone and a Compaq iPAQ personal digital assistant pre-loaded with PacketVideo's PVPlayer(TM) decoding software. The trial also uses PacketVideo's MPEG-4 encoding software, PVAuthor(TM), and server software, PVServer(TM).

About Sonera

Sonera (HEX:SRA, Nasdaq:SNRA) is an international forerunner in mobile communications and mobile-based services and applications. By combining its expertise in mobile communications, the Internet and service provision, Sonera aims to develop into a global communications operator and provider of transaction and content services. The company also provides advanced data communications solutions to businesses, and fixed network voice services in Finland and its nearby areas. In 1999, Sonera's revenues amounted to EUR 1.85 billion and profit before extraordinary items and taxes was EUR 0.5 billion.

About PacketVideo

PacketVideo is the global leader in wireless media. The company's commercially available, MPEG-4 compliant encoding, distribution and decoding software enables content providers and mobile operators to deliver rich media, not just data, to mobile users over any digital wireless network. PacketVideo was recently included in the Red Herring 100 as one of fifty private companies whose products, services, or business models are most likely to change the world.

Founded in 1998, PacketVideo is a global company based in San Diego, California, in the heart of "Telecom Valley." PacketVideo's investors include Credit Suisse First Boston, Intel Capital (Nasdaq:INTC), Nexus Group LLC, Philips (NYSE:PHG), QUALCOMM Incorporated (Nasdaq:QCOM), Reuters Group PLC (Nasdaq:RTRSY) through its Greenhouse investment program, members of the Rockefeller family, Siemens Mustang Ventures, Sonera (HEX:SRA, Nasdaq:SNRA), Sony Corporation of America (NYSE:SNE), Texas Instruments (NYSE:TXN), Time Warner (NYSE:TWX), and others. To learn more, visit www.packetvideo.com.

PacketVideo and PacketVideo product names are trademarks or registered trademarks of PacketVideo Corporation. All other trade names and trademarks are the property of their holders.