Pegasus Technologies Announces Integration With Microsoft Office OneNote 2003

Business Wire, March 8, 2005

TEL AVIV, Israel -- Now laptop and desktop users can save their handwritten notes and drawings directly into Microsoft(R) Office OneNote(R) 2003 using Pegasus' breakthrough Digital Pen as an input device.

Pegasus Technologies, Ltd., (www.petagech.com), a leading provider of breakthrough handwriting input solutions, announces cooperation with Microsoft Corp. (Nasdaq:MSFT) to provide laptop and desktop PC users the ability to take or upload handwritten notes directly into Microsoft(R) Office OneNote(R) 2003.

OneNote 2003 (www.microsoft.com/office/OneNote) is a new program in the Microsoft Office System that combines the freedom and flexibility of paper notes with the efficiency and power of digital organizational tools. With OneNote, users can take, organize, find and use their notes on a laptop, desktop, or Tablet PC. OneNote helps users be more productive with their notes and ideas whether they are at their desk, meetings, presentations, classes, phone conferences, or brainstorming sessions. OneNote enables desktop and laptop users to type notes, copy pictures or documents, even record audio and video notes. Tablet PC users have enjoyed the additional ability to handwrite notes and draw within OneNote easily and naturally.

Now Pegasus enables laptop and desktop users to enjoy the benefits of handwritten notes in OneNote. By using one of Pegasus' ultimate input devices - Pegasus PC Notes Taker or Mobile NoteTaker - handwritten paper notes, sketches and diagrams can be captured into the OneNote application. PC NoteTaker directly captures handwritten notes and sketches while connected to the PC. The Mobile NoteTaker is designed for mobile users away from their computer. Up to 50 handwritten notes can be captured, saved and then uploaded to OneNote upon returning to the office. With

the Mobile NoteTaker and OneNote, a user can capture notes and drawings on paper without the need to bring a PC to a meeting, presentation, or brainstorming session, but still upload those notes digitally to OneNote later to organize or use them in other ways.

"We are very excited about the opportunity to provide a handwriting capture device for OneNote users. The OneNote application is a proud addition to the Pegasus offering. Integration with OneNote combines the intuitive nature of writing paper notes with the efficiency and power of a digital note management application. Now laptop and desktop users can enjoy the benefits of handwriting with their existing PC," said Gidi Shenholz, CEO and Co-Founder of Pegasus. "Pegasus' vision is to establish the Digital Pen as a widely accepted, value added input device, as useful and ubiquitous as the mouse and keyboard. Microsoft's recognition of Pegasus technology as a leading third-party handwriting input device for their products is a major step towards a realization of that vision."

"We envision a positive experience for customers, resulting from the integration of OneNote with the Pegasus Digital Pen," said Roan Kang, Senior Product Manager of Microsoft. "With Pegasus products, we can now offer the benefits of handwriting and drawing easily and naturally to our desktop and laptop PC customers."

About Pegasus

Founded in 1991, Pegasus Technologies provides advanced handwriting input solutions for the PC, PDA and cellular markets. Pegasus is a leading developer of 2D positioning and tracking technology. The Company's team includes development engineers and scientists possessing advanced know-how in ultrasonic and infrared technologies. This expertise provides the foundation for Pegasus' signal processing, filtering and positioning techniques. The Company's products are based on proprietary algorithms and chip sets, and Pegasus holds numerous patents and patents pending. Headquartered in Tel Aviv, Israel, the Company is privately owned and backed by several international VC funds.

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About the Microsoft Office System

The Microsoft Office System is an easy way to help more people use information to positively impact their business. Through a system of familiar and easy-to-use programs, servers, services and solutions, users can connect people and organizations to information, business processes and each other -- helping ensure that they derive the most value out of information. The Microsoft Office System consists of the 2003 editions of Microsoft Office, Microsoft Office SharePoint Portal Server 2003, Microsoft Office Project and Project Server 2003, Microsoft Exchange Server 2003, Microsoft Office Live Communications Server 2005, Microsoft Office Live Meeting, Microsoft Office FrontPage(R) 2003, Microsoft Office InfoPath 2003, Microsoft Office OneNote(R) 2003, Microsoft Office Publisher 2003, and Microsoft Office Visio(R) 2003. Enabling technologies, such as Microsoft Windows(R) SharePoint Services and Microsoft Windows Server(TM) 2003, enhance the features and functionality of products in the Microsoft Office System.