Phone.com, Inc. (NASDAQ: PHCM), a leading provider of WAP mobile Internet software, applications, and services and BT (British Telecommunications plc), a global supplier of wireless communications, today announced that BT has licensed Phone.com's MyPhone™. The two companies intend to work together to use emerging WAP based technologies for new types of wireless Internet services and rapidly deploy these within BT's global mobile joint ventures, serving a customer base of 35m in 15 countries. The MyPhone communication applications suite and underlying UP.Link WAP Server Suite become the preferred platforms for BT's wireless portal deployments around the world.

MyPhone is a mobile portal platform and a complete suite of value added communication applications and personal information management applications that enable the development of next generation universal access Internet portals. As such, MyPhone enables the integration of many types of applications into a single, fully personalized service. The license agreement will provide BT with a rapid route to market with a leading edge and constantly evolving set of integrated wireless Internet services. The agreement further supports Phone.com's goal to continue to define and lead the market for WAP-based mobile Internet, communication, and commerce applications and services, tailored to specific operator and mobile end-user requirements.

"The diversity of applications that we will be able to offer by fusing together mobile telephony and Internet technologies is vast," said Kent Thexton, managing director of Global Mobile Internet Unit, BT. "BT needed to partner with a proven technology innovator whom we could rely upon to deliver the kind of advanced applications we want to offer to our subscribers. By partnering with Phone.com, BT will ensure an ongoing lead in this market."

"Phone.com is delighted to be working with market leaders such as BT," said Alain Rossmann, chairman and chief executive officer of Phone.com. "The partnership with BT gives us access to some of the most innovative global GSM networks in the world. By combining our technology vision with BT's market expertise we expect to rapidly deploy new types of services and secure an enduring advantage for both companies in this highly dynamic market."

The underlying UP.Link™ Server software is a proven WAP 1.1 implementation with many advanced features. In use with over 50 wireless operators worldwide, the UP.Link gives BT a secure basis on which to build the personalized mobile portals it is to offer around the globe.

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