Esmertec's Jbed Software Deployed in LG Electronics' Highly Successful GSM-based Chocolate Phone

Business Wire, Nov 30, 2006

DUEBENDORF-ZURICH, Switzerland -- Esmertec[TM] (SWX:ESMN), a focused provider of software and services to communications device manufacturers and mobile telecom operators, is pleased to announce that LG Electronics (LGE), a major global player in electronics and mobile communications, has selected Esmertec's Jbed[TM] solution as the exclusive Java[TM] Virtual Machine (JVM) for all its GSM1-based "Chocolate" phones.

JVMs are integrated into phones to enable Java mobile applications such as games to run on the phones. Esmertec's Jbed has been selected by LGE for its reliability and superior performance. LGE's Chocolate phones continue to be an international success and more than 5 million GSM- and CDMA2-based units have been sold globally. The slim Chocolate phone is equipped with an integrated 1.3 mega pixel camera, an MP3 Player and features a "hidden" touch-sensitive display, which glows red on contact.

"We have worked closely with LGE since 2004 and Esmertec's Jbed has been successfully deployed in various models of LGE mobile handsets, from entry level handsets to feature phones such as "KE800"", said Joe Burke, VP Sales for Asia Pacific, Esmertec. "We will continue providing LGE with innovative software and in more complete bundles, so as to enable them to deliver phones quickly and on time to the market, while motivating operators' subscribers to remain loyal through user-friendly and entertaining multimedia phone applications."

As a leading provider of JVM solutions for mobile devices, Esmertec's software has been commercially launched in phones from 5 of the 6 leading handset brands, and on leading Original Design Manufacturer's platforms worldwide. As of September 30, 2006, Jbed has been deployed in a cumulative total of more than 76 million mobile devices in over 340 models.

* Esmertec will be showcasing its complete solution portfolio, including the KE800 Chocolate phone, at ITU Telecom World, 4th-8th December, Hong Kong. Come by and visit us at booth 6007 in Hall 6.

About Esmertec

Esmertec is a focused provider of software and services to communications device manufacturers and mobile telecom operators. The company provides software platforms that enable the deployment of content and applications in devices and over servers. Customers include mobile telecom operators and manufacturers of mobile handsets, set-top boxes and interactive televisions. Esmertec's software and service capabilities excel with its reliability as well as fast and local execution. Founded in 1999, Esmertec is headquartered in Zurich-Switzerland with subsidiaries in China, France, South Korea, and the USA, and offices in Taiwan and the UK. Since 2005, Esmertec has been listed on the SWX Swiss Exchange (ESMN). www.esmertec.com

Esmertec and Jbed are trademarks of Esmertec AG.

Java is a trademark of Sun Microsystems Inc.

Other company, product and service names may be trademarks of their respective owners

1 GSM = Global System for Mobile Communications

2 CDMA = Code Division Multiple Access