Pumatech Receives Favorable Ruling in Its Infringement Suit against ESI.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 5, 2003

Pumatech, Inc. (NASDAQ: PUMA)

-- Pumatech Prevails In Vast Majority Of Disputed Definitions

-- Pumatech Anticipates This Ruling Will Have Significant Impact

On The Case And Others Involving These Patents

Pumatech, Inc. (NASDAQ: PUMA), a leading provider of synchronization software and services, today announced that it received a favorable ruling in its patent infringement lawsuit against Extended Systems Inc. (ESI)(NASDAQ: XTND) in the United States District Court for the Northern District of California. The suit, Case Number C-02-1916 DLJ filed on April 22, 2002, alleges ESI infringes eight patents owned by Pumatech.

On August 1, 2003 the Hon. Judge D. Lowell Jensen, U.S. District Judge, issued his Claims Construction Ruling on the interpretation, definition and scope of the claims in the suit. This ruling is critical at the trial in determining issues of patent validity and infringement. The Court's ruling confirms the legal positions and the majority of patent interpretations established by Pumatech at the beginning of the patent dispute. Pumatech anticipates the Court's Claim Construction Ruling will have considerable favorable impact on its case as it proceeds toward trial in early 2004. Pumatech also believes that this favorable ruling will have a positive impact in Pumatech's other cases involving these patents.

On the crucial claim terms "processing a plurality," "represent," and "span of information," the Court adopted wholesale Pumatech's proposed interpretation.

On the important "status file" and "history file" terms, the Court rejected ESI's proposal that the words should be interpreted to mean that all information in a record must exist in the status or history file. This will significantly simplify Pumatech's ability to prove that ESI's products infringe the patents.

On only two claim terms ("first" and the "means-plus-function" claims) did the Court rule for ESI. The claim term "first" is currently being amended at the Patent and Trademark Office. Pumatech expects the Patent Office to issue a revised patent on that claim term, and Pumatech is confident of its ability to prove ESI's infringement of that claim. With respect to the "means-plus-function" claims, Pumatech believes ESI's software products infringe the patents even under the Court's ruling.

Pumatech will file "Final Infringement Contentions" within 30 days, detailing the ways in which ESI's past and current software products infringe the 248 patent claims asserted against ESI. Pumatech believes the favorable results obtained in the Claim Construction Order on five of the seven terms in dispute should allow Pumatech to more easily prove infringement by ESI. Upon a determination of infringement, Pumatech will proceed to calculate damages, and seek an injunction against use or sale of the infringing ESI software.

"The court ruled on seven disputed terms. Pumatech prevailed on five of the seven, and more importantly, for the terms we consider critical, the Court adopted Pumatech's definitions. We believe this ruling enhances the value of Pumatech's patent portfolio, and strengthens its ability to prove infringement. While Pumatech is confident in its ability to prevail on its asserted claims, just as in shooting skeet where a single pellet from one shotgun shell can score a hit, we only need to prevail on one claim of one patent to be awarded damages and to have an injunction entered," said Chuck Runge, Pumatech's vice president of intellectual property. "We are pleased with the Court's ruling and the progress of the case, and look forward to having the infringement claims heard by a jury early next year."

Pumatech's suit alleges infringement of the following Pumatech synchronization patents: U.S. Patent No. 5,392,390, entitled "Method for Mapping, Translating, and Dynamically Reconciling Data Between Disparate Computer Platforms"; U.S Patent No. 5,666,553, entitled "Method for Mapping Translating, and Dynamically Reconciling Data Between Disparate Computer Platforms"; U.S. Patent No. 5,684,990, entitled "Synchronization of Disparate Databases"; U.S Patent No. 5,701,423, entitled "Method for Mapping, Translating, and Dynamically Reconciling Data Between Disparate Computer Platforms"; U.S. Patent No. 5,943,676, entitled "Synchronization of Recurring Records in Incompatible Databases"; U.S. Patent No. 6,141,664, entitled "Synchronization for Databases With Date Range"; U.S. Patent 6,405,218, entitled "Synchronizing Databases"; and U.S. Patent No. 6,212,529, entitled "Synchronization of Databases Using Filters".

Pumatech was awarded its first synchronization patent in 1995. Its portfolio of 53 issued U.S. patents and more than 25 pending patents consists of 47 relating to various aspects of its intelligent synchronization technology. Pumatech's best-selling Intellisync(R) synchronization technology has been shipping since 1996, has been adopted by nearly half of the Fortune 1000, and has been licensed and embedded into solutions offered by over 200 companies, including Microsoft, Oracle, Sharp, Siebel, Sony and Yahoo!.

ABOUT PUMATECH

Pumatech, Inc. (NASDAQ: PUMA) provides organizations with a comprehensive suite of software products and services that synchronizes and distributes critical information throughout the enterprise. Organizations can choose to use Pumatech's ready-made enterprise offerings, or they can leverage Pumatech's professional services team to create custom solutions built upon Pumatech's core enterprise platform. Pumatech's customer and strategic partner base includes Global 2000 companies such as Microsoft, Oracle, PeopleSoft, America Online, Yahoo!, NTT DoCoMo, Eastman Kodak and IBM. The Company has headquarters in Silicon Valley and offices in Amsterdam, Munich, Tokyo and London. Pumatech offers more information on its products and services at www.pumatech.com.

The forward-looking statements above in this news release, including but not limited to statements related to future hearings, Pumatech's ability to prove infringement, Pumatech's expectations as to the impact of the Court's ruling on claims construction and the potential outcome of patent litigation, the business outlook in the event of court rulings which are not in Pumatech's favor with respect to this or other litigation, and Pumatech's filing of final infringement contentions, involve risks and uncertainty are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Factors that could cause actual results to differ materially include uncertainties related to the outcome of the patent litigation, the possibility that this Court or other Courts may not apply the same interpretations of disputed claims in other cases involving the patents, Pumatech may not be successful in its effort to have the Patent and Trademark Office amend its patents, the possibility that even if infringement by ESI or others is established, Pumatech may not be entitled to injunctive relief, as well as additional risk factors, as discussed in the "Risk Factors" section of Pumatech's Annual Report on Form 10-K for the year ended July 31, 2002 and Pumatech's quarterly reports filed from time to time with the U.S. Securities and Exchange Commission. Pumatech disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

Pumatech, the Pumatech logo and Intellisync are trademarks of Pumatech, Inc., that may be registered in certain jurisdictions. All other product and company names may be trademarks of their respective owners.