Acquisition brings new operator focus

Following the acquisition of Cellicium, Esmertec has expanded its business by setting up a new mobile operator division.

In line with its strategy to enable software solutions and services for the entire value chain from the service provider to the handset, Esmertec is extending its business with the establishment of a new mobile operator division.

Newly acquired Cellicium will greatly enhance Esmertec's business activities with mobile operators and serve as the core of this new division.

Cellicium, founded in February 2001, operates in Bagneux outside of Paris and is a premier provider of mobile browsing solutions, applications and related services to mobile operators.

In the new division, Cellicium will continue delivering these carrier-grade solutions and services to GSM operators.

"We deliver today one of the most advanced solutions for the integration and operation of browsing services and applications to operators in France, Africa, and the Middle East", says Sebastien Desquilbet, CEO of Cellicium.

"With Esmertec, we want to accelerate our growth and revenue momentum by addressing other European and Asian markets".

Jean-Claude Martinez, President and COO of Esmertec, has been appointed to take on the additional responsibility as President of this division, effective immediately.

"Our increasing co-operation with mobile operators on the handset side has led us to decide to expand our solution offering to mobile operators", says Martinez.

"Cellicium brings best-in class-solutions and customer base to this new division and will further advance our business with mobile operators".

Esmertec has taken a 100% equity stake in Cellicium.

The initial purchase price is approximately Eur 12.5 million in cash, with an additional estimated Eur 9.5 million conditional payout in 2006 and 2007.

The payout is based on earnouts, of which 70% will be in cash and 30% in Esmertec shares.

Cellicium is a profitable and cash flow positive company.

With the growth and expansion of Esmertec's business, the senior management team has been strengthened with the appointment of Georges Boulloy as Chief Marketing Officer.

Prior to Esmertec, Boulloy served as former Senior VP and General Manager of Quanta's Wireless Business and was former Senior VP, Global Product Operations of Siemens ICM.

He has 12 years of experience in the mobile phone industry and will be responsible for the marketing strategy of Esmertec's products and services.

In addition, Billy Crotty has been promoted to EVP Sales and Professional Services Worldwide, effective immediately.

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