Phone.com Reports Third Quarter Results - Company Financial Information

Cambridge Telcom Report, April 24, 2000

Phone.com, Inc. (Nasdaq: PHCM), a leading provider of software and applications that enable the delivery of Internet-based voice and information services to mass-market wireless telephones, Wednesday announced results for the third quarter and nine months ending March 31, 2000.

Third quarter revenues increased 46 percent to $18.7 million from $12.8 million in the second quarter of fiscal 2000, and increased 428 percent from $3.5 million in the same period a year earlier. Revenues for the nine months ended March 31, 2000 increased 495 percent to $40.0 million, from $6.7 million for the nine months ended March 31, 1999.

Net loss for the third quarter excluding amortization of goodwill and deferred stock compensation related to acquisitions and a charge for in-process research and development expense was $5.9 million, or $0.08 per diluted share, based on 71.0 million weighted average shares outstanding. Including these expenses, net loss for the third quarter was $74.6 million, or $1.05 per diluted share, compared to a net loss of $20.0 million, or $0.31 per diluted share, for the second quarter and a net loss of $5.7 million, or $0.50 per diluted share, for the third quarter in the prior year. Net loss for the nine months ending March 31, 2000 excluding amortization and charges related to acquisitions was $16.3 million, or $0.25 per diluted share. Including these expenses, net loss for the nine month period was $99.5 million, or $1.51 per diluted share, compared to a net loss of $14.0 million, or $1.24 per diluted share, for the same period a year earlier.

As of March 31, 2000, the company had cash, cash equivalents and short-term investments of $496.9 million, total assets of $1.5 billion and stockholders' equity of $1.4 billion. Deferred revenues increased during the third quarter to $63.0 million, up from $46.6 million at December 31, 1999.

"The third quarter was a very strong quarter for Phone.com," said Alain Rossmann, Chairman and Chief Executive Officer. "The increase in number of users of our products worldwide to over 2.0 million from 700,000 at the end of 1999 indicates the rapid acceleration of consumer adoption of mobile Internet services. We also significantly broadened our product line and increased our competitive position through the acquisitions of @Motion, Paragon Software and Onebox.com."

Phone.com, Inc. is a leading provider of software and applications that enable the delivery of Internet-based voice and information services to mass-market wireless telephones. Using its software, wireless subscribers have access to Internet and corporate intranet-based services, including email, news, stocks, weather, travel and sports. In addition, subscribers have access via their wireless telephones to network operators' intranet-based telephony services, which may include unified messaging, voice dialing, over-the-air activation, billing history information, and pricing plan subscription. Phone.com is headquartered in Silicon Valley, California and has regional offices in Belfast, London, Paris, Tokyo, Hong Kong, and Seoul. Visit http://www.phone.com for more information.

Motorola in Scotland

-- Motorola established its first manufacturing operations at East Kilbride in 1969

-- Since then, the firm has invested more than L1bn into the Scottish economy

-- Motorola is the biggest private sector employer in Scotland with a total workforce of 6,500 at its three plants in East Kilbride, South Queensferry and Easter Inch.

Motorola in the UK

-- Motorola has been operating in the UK since 1967 and employs around 10,000 people in manufacturing, research and development and marketing -- Motorola Ltd had sales of L3.7bn in 1999, including L3.0bn in exports -- The company is one of the UK's top ten exporters, with six Queen's Awards for Export Achievement since 1991

-- Investment in the UK averaged L2.4 million per week in 1999