e-SIM Appoints Tatung Company as New Distributor in Taiwan

Business Wire, Sept 17, 2001

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--Sept. 17, 2001

Receives $700,000 for Distribution Rights for RapidPLUS Products;

Strengthens Presence in Taiwan

e-SIM (NASDAQ:ESIM), the leader in advanced simulation technology for product design, development and code generation, today announced Tatung Company, as its new distributor of its RapidPLUS suite of software products in Taiwan.

Tatung Company is Taiwan's leading manufacturer of computer and communications products, electronics, home appliances and industrial equipment.

Under the terms of the distribution agreement, e-SIM will receive an initial order of $700,000 from Tatung for the rights to use, market, and sell e-SIM's RapidPLUS Code Generation and RapidPLUS Doc products in Taiwan. Tatung plans to market e-SIM's software products to their wide customer base in Taiwan as part of their development solutions and services in the CAD/CAM field. RapidPLUS will also be used internally in Tatung electronics, appliance and industrial products divisions to aid in the development of their own products with embedded processors. This agreement strengthens e-SIM's presence in Taiwan, which is currently supported directly from Israel, with major industrial customers such as Quanta Computers, Taiwan's largest manufacturer of laptop computers.

"This agreement is strategically significant for Tatung," said Mr. W.S. Lin, President of Tatung Company. "RapidPLUS will enhance our value proposition to our customers as well as aid in the development of our own products, which are distributed to more than 100 countries worldwide. We already have plans to use RapidPLUS in at least six of our divisions. We believe that our customers will find RapidPLUS useful in designing their state of the art electronics products."

"Distributors around the globe accelerate the penetration of RapidPLUS, while keeping our costs down," said Ken Dixon, President of e-SIM Inc. "Attracting industry leaders such as Tatung, who already have a strong customer base, to distribute RapidPLUS is a proven strategy that will help e-SIM achieve profitability. We look forward to supporting Tatung's developers and customers to make this a successful venture for both companies."

About Tatung Company

Tatung Company, with headquarters based in Taiwan, provides major brand-name customers with integrated product services (IPS) that cover advanced research, product development, fast-prototyping, manufacturing, and global logistics throughout North America, Europe and Asia. Using such services, Tatung's customers gain tremendous advantages of cost, speed, and seamless backend operation to stay ahead in the dynamic business environment today. The annual sales revenue of Tatung is USD 7.0 Billion of year 2000, and the products Tatung serves on global basis are mainly in the area of computer displays, information appliances, home appliances, power and energy. With over 83 years of company history, Tatung represents one of the most successful and well-established companies in the IT industry. Tatung continues to renovate itself over time with values that have been highly recognized by the customers and partners worldwide.

About e-SIM

Founded in 1990, e-SIM Ltd. (NASDAQ:ESIM) http://www.e-sim.com/ is the leading provider of advanced simulation technology for product development, Web-based customer support and marketing. E-SIM's simulation technologies build off its RapidPLUS line of software products that enable product designers and engineers to expedite the concept-to-market life cycle by easily creating simulated computer prototypes that are fully functional, interactive and behaviorally identical to the manufactured products and systems.

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, significant fluctuations and unpredictability of operating results, risks in product and technology development and rapid technological change, dependence on a single product line, extent of demand for the Company's product, impact of competitive products and pricing, market acceptance, lengthy sales cycle, changing economic conditions, risks of joint development projects, dependence on key personnel, difficulties in managing growth, risks relating to sales and distribution, risks associated with international sales, risks of product defects, dependence on company proprietary technology. For a more detailed discussion of these and other risk factors, see the Company's Form 20-F as filed with the United States Securities and Exchange Commission.