U.S. Bancorp Piper Jaffray Reiterates Strong Buy on Phone.com and Raises Price Target from $143 to $150

Business Wire, Feb 9, 2000

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Feb. 9, 2000

U.S.Bancorp Piper Jaffray Senior analyst Edward Jackson reiterated his Strong Buy rating on Phone.com (NASDAQ:PHCM - 136- (a)(b)) this morning, and raised his 12-month price target from $143 to $150 following the Phone.com's announced acquisition of Paragon Software yesterday for $500 million in stock.

Phone.com Inc. is a leading provider of software that enables the delivery of Internet-based services to mass-market wireless telephones. Paragon Software is the leading developer of synchronization software and technology that improves the way mobile phone users communicate. According to Jackson, the company has 63 employees and has marketing arrangements in place with numerous partners including Nokia, Ericsson, AT& Wireless, Microsoft and Lotus.

&uot;We think the acquisition adds substantial value to the Phone.com's Wireless Application Protocol product by leveraging the power of mobile data synchronization and adding a service that drives usage, increases subscriber loyalty and increases per handset revenues to be received by Phone.com,&uot; says Jackson. &uot;Mobile phone users want one-button information synchronization between their mobile phones, PC applications and Internet information services. Through the new partnership, users of more than 240 types of digital mobile phones from 20 manufacturers will be able to download Microsoft Outlook, Lotus Notes, Excite@Home, Yahoo!(a) and other applications directly to their handsets.&uot;

Another reason Jackson is reiterating his strong buy is that he says competition in the wireless Internet services industry is growing rapidly and Phone.com is the best positioned company to capture an expected increase in subscribers. &uot;Competition will drive down prices for wireless Internet products and services, and millions of handset users today are just waiting for the opportunity to take advantage of the emerging technology when the price is right,&uot; says Jackson. &uot;As the market leader, Phone.com is extremely well positioned to capitalize on the burgeoning market for wireless Internet services, which we expect to explode as we reach the end of calender 2000 and into 2001.&uot;

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