CIDCO Builds VoIP Presence Through Strategic Marketing Relationship With AG Communication Systems

Business Wire, July 24, 2000

Business Editors & High Tech Writers

MORGAN HILL, Calif.--(BUSINESS WIRE)--July 24, 2000

CIDCO Incorporated (NASDAQ:CDCO), a worldwide leader in telephony and Internet appliances, and AG Communication Systems, a subsidiary of Lucent Technologies (NYSE:LU), announced today a strategic marketing relationship to deliver next-generation IP Centrex solutions. Based on this new relationship, CIDCO will develop and manufacture IP telephones that interoperate with the 7R/E iMerge(TM) Centrex Feature Gateway (CFG).

The iMerge CFG is part of Lucent's 7R/E(TM) Packet Solutions, which offers existing service providers a seamless migration path to packet networks and provides emerging carriers with the ability to build a new packet network. iMerge and CIDCO's IP Centrex telephones allow subscribers to access the rich feature functionality of any GR303-equipped class 5 switch for revenue-generating applications such as multi-location Centrex, virtual offices for road warriors, transparent telecommuting and virtual call centers.

"As the premier provider of IP Centrex services, AG Communication Systems is the perfect ally for us to jointly deliver IP products that decrease enterprise operating costs while improving system features and capabilities," said Mark Jensen, director of product management for CIDCO. "Our experience in network-enhancing telephone design gives us the skills required to create the leading-edge products that allow corporations to take advantage of next-generation telephony services."

"iMerge combines the inherent reliability of the public switched telephone network with the cost-saving advantages of the packet network," said Ken Arndt, vice president of marketing at AG Communication Systems. "Most important, however, are iMerge's revenue-generating applications that make employees more effective and enterprises more competitive. The combination of iMerge and CIDCO's broad telephony experience will enable customers to maximize the potential of their networks."

Today's announcement is CIDCO's second significant step this month towards building a major presence in the voice-over-Internet-protocol (VoIP) market. The memo of understanding with AG Communication Systems follows CIDCO's recent announcement with Netergy Networks to develop IP phones based on Netergy's IP chipset.

CIDCO plans to release a line of IP telephones beginning with the IP210 in the 4th quarter of 2000. Both phones will be true IP phones that incorporate the Netergy T2 processor and will be compatible with VoIP industry standard protocols SIP, H.323 and MGCP. The IP200 will be a basic business telephone and will support a full duplex speakerphone, three-line display, two-line appearances and system feature keys. The IP210 will be a full-featured business set with three-line appearances and a large format screen that will support a variety of soft services. The development of IP phones expands CIDCO's telephony business and allows the company to enter the growing VoIP enterprise market in addition to its traditional residential consumer market.

ABOUT AG COMMUNICATIONS SYSTEMS

AG Communication Systems, a subsidiary of Lucent Technologies, offers service providers advanced network-based solutions, including circuit and packet switching, voice-over-Internet protocol (VoIP) and IP Centrex, call center, integrated access and wireless office system products. The Phoenix-based company develops end-user applications that maximize revenue opportunities for service providers. AG Communication Systems also provides a full range of enhanced services, including installation, engineering, consulting, project management and technical support, to help customers manage their networks from beginning to end. Additional information is available at http://www.agcs.com.

ABOUT CIDCO

CIDCO Incorporated, founded in 1988, is a worldwide leader in telephony products, services and appliances that empower consumers to communicate simply and easily over advanced telephony networks and the Internet. Through its alliances with many of the world's leading telephone companies, CIDCO develops advanced network appliances such as network feature telephones, Caller ID devices, voice mail navigation appliances and Internet appliances that enable consumers to maximize the value of telephony networks and Internet services. CIDCO introduced its first Internet appliance in 1998 for a world moving into the developing Internet appliance era and is extending this vision to devices that will make e-mail and other information services readily available to consumers that don't have access to or require traditional computers. For additional information, visit www.cidco.com or call 408/779-1162.

MailStation and CIDCO are trademarks of CIDCO Incorporated. All other trademarks are the property of their respective owners.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements or predictions. These statements represent our judgment as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with economic conditions, government regulations and delays or other problems with product development. These and other factors are discussed in more depth in both companies' filings with the SEC, copies of which may be accessed through the SEC's World Wide Web site at http://www.sec.gov.