Software.com To Acquire @mobile.com; @mobile.com's Wireless Instant Messaging and Network Integration Expertise to Accelerate Software.com's Growth in Wireless Internet Market

Business Editors/High Tech Writers

SANTA BARBARA, Calif.--(BUSINESS WIRE)--March 9, 2000--Software.com Inc. (Nasdaq: SWCM), a leading developer of carrier-scale, Internet infrastructure applications, today announced it has signed a definitive agreement to acquire @mobile.com Inc. for approximately $400 million in Software.com common stock.

Headquartered in Bellevue-Wash., @mobile.com is a leading wireless Internet application service provider with wireless Instant Messaging technology and Wireless Intelligent Network (WIN) integration expertise. The acquisition of @mobile.com enables Software.com to deliver advanced, wireless Internet offerings, including unified messaging and true Instant Messaging. In addition, the agreement will add support for wireless applications to its carrier-scale LDAP (Lightweight Directory Access Protocol) directory.

"We plan to integrate @mobile.com's suite of applications rapidly into Software.com's offerings which we will then deliver as mobile Internet infrastructure software to service providers worldwide," said Software.com founder and CEO John MacFarlane. "@mobile.com's management team brings unparalleled experience from the wireless market. In particular, @mobile.com CEO Michael Buhrmann has more than 15 years as a leading industry executive at companies such as McCaw Cellular and AT&T Wireless."

The @mobile.com deal is the next step in Software.com's acquisition strategy initiated last year with the purchase of wireless Internet infrastructure developer Telarc, Inc. As a result of that acquisition, Software.com integrated Short Messaging Services (SMS) technology into its InterMail(R) messaging platform, which is exemplified by its current use at Sprint PCS. According to MacFarlane, the @mobile.com acquisition will enable Software.com to further extend its reach into the wireless market by providing mobile service providers with a broader array of applications to create and deliver mobile Internet services.

"Scalability is critical when dealing with wireless carriers as the subscriber bases number in the many millions," said Buhrmann. "One of our objectives, immediately upon close of the deal, is to combine Software.com's carrier-scale messaging and directory applications with @mobile.com's mobile Internet technology and expertise. Our two companies have already identified a shared set of wireless customers that need the ability to offer wireless unified messaging and wireless instant messaging."

Leveraging its flagship InterMail software and @mobile.com's strong WIN expertise, Software.com plans to deliver wireless unified messaging, enabling mobile service providers to tap the exploding wireless services market. Based on this technology, wireless service providers can provide their customers with "access anywhere" - the ability to access voicemails, emails, pages and faxes from a single mailbox regardless of location, time or device.

Another key technology component of the deal will allow Software.com to "productize" @mobile.com's Instant Messaging service. Unlike traditional Instant Messaging services, @mobile.com's Instant Messaging enables subscribers to detect user presence, allowing them to quickly ascertain who is online via mobile phone or PC. With @mobile.com's Instant Messaging, wireless subscribers can send and receive messages to mobile phones or PCs; create lists of friends and colleagues; and create group lists (i.e., accounting department, soccer team, etc.) to quickly and effectively broadcast messages to groups.

With this acquisition, Software.com plans to adapt its carrier-scale LDAP directory to enable mobile service providers to more effectively manage and expand their wireless data services. The companies intend to combine the @mobile.com technology with Software.com's directory product to provide advanced capabilities such as tracking and maintaining mobile user profiles, and presence and location information, which enables mobile service providers to easily tailor and manage data services for each of their subscribers.

Under the terms of the merger agreement, @mobile.com's existing 70 employees will join Software.com immediately following the close of the deal. Buhrmann will join Software.com's executive management team as general manager of its wireless business. In addition, Software.com will maintain an office in Bellevue. The deal will be financed by the exchange of 3.75 million shares of Software.com common stock for all outstanding stock and options in @mobile.com. The acquisition is expected to be accounted for as a pooling of interests and should close within six weeks. This acquisition has been approved by the board of directors of each company and is subject to customary closing conditions and regulatory approvals.