Vadem Signs Agreement with Microsoft for Distribution of Windows CE Operating System; Vadem Forms ForCE Business Unit to Focus on Providing OEM Solutions for Windows CE.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 15, 1997--Vadem Inc. today announced it has signed an agreement with Microsoft to distribute the Windows CE operating system and that Microsoft has selected Vadem to be a worldwide systems integrator for Windows CE.

The agreement, combined with Vadem's expertise in chip and system design, support and training for Windows CE, establishes the company as the premier development partner for OEMs seeking to produce the next generation of mobile devices and embedded systems.

To demonstrate its commitment to Windows CE, Vadem has created the ForCE group, a new business unit focused on the Windows CE market. Ahmet Alpdemir has been appointed vice president of this new group. "Information Appliances will continue to be one of the most dynamic segments of the computer industry for many years to come," said Alpdemir. "With Microsoft behind us, Vadem offers OEMs support from start to finish in Windows CE-based system development."

The ForCE group will provide customized system designs, reference designs, embedded modules, board-level products and system integration services. Vadem also offers manufacturing services through its manufacturing partners. By outsourcing these services to the ForCE group, OEMs shield themselves from some of the most complex and time-consuming development tasks and significantly reduce their time-to-market.

"Windows CE promises to fuel the development of countless new specialized systems," said John Zhao, president and CEO of Vadem. "The challenge for OEMs serving this highly segmented market is to design high performance, differentiated mobile devices in a short time frame. Vadem is facilitating OEMs' short time-to-market by offering not only Windows CE, but also a variety of complex system designs optimized for Windows CE."

The convergence of computing, wireless communication and network access is increasingly frustrating designers with its conflicting requirements of small size, low power, low cost and high CPU performance. These constraints demand a much more comprehensive, "whole product" approach to the design of mobile systems than for desktops or even laptops.

"More and more companies are turning to Windows CE to solve problems in the embedded systems market," said Harel Kodesh, general manager of Microsoft's consumer platforms division. "With Windows CE distribution, Vadem will offer a complete portfolio of Windows CE products to enable OEMs to reduce time-to-market in developing Windows CE embedded solutions."

Windows CE is an open, scaleable Windows platform for a broad range of communications, entertainment and mobile-computing devices. This operating system makes possible new categories of non-PC devices that communicate with one another, share information with Windows-based PCs and connect to the Internet. Windows CE is a full 32-bit, multi-tasking, multi-threaded operating system based on the Win32 API.

About Vadem

Founded in 1983, Vadem focuses on design, development and marketing of unique products and services that simplify and proliferate information access and facilitate communications. Headquartered in San Jose, the company provides OEMs with state-of-the-art chip, board and system products for the portable information appliance markets. The company's web site is http://www.vadem.com . -0-

NOTE TO EDITORS: Vadem and ForCE are registered trademarks of Vadem Inc. All other trademarks and service marks are the property of their respective owners.

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Kaushal Mehta, 408/467-2133

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