Extended Systems and Red-M Announce an Alliance for Advanced Bluetooth Technology Companies to Collaborate On Data and Voice Integration Technology

Extended Systems (Nasdaq:XTND), a leading provider of mobile data management and wireless connectivity solutions and Red-M, a pioneering developer of Bluetooth networking solutions and subsidiary of Madge Networks N.V. (Nasdaq:MADGF) announced today a strategic alliance.

The alliance will see the two companies working together to further the development of innovative data and voice technology based on Bluetooth.

The alliance will combine Extended Systems' expertise in Bluetooth stack technology with Red-M's knowledge of Bluetooth networking solutions. Extended Systems is a leading provider of Bluetooth protocol software development kits and has licensed its technology to such industry leaders such as Palm, 3Com, Motorola, Hewlett-Packard, Flashpoint, Xircom and Red-M among others. Red-M is a market-leading developer of Bluetooth networking products that provide rapid and secure transmission of data, voice and video communications over a wireless connection inside buildings and public concourses.

Both companies will showcase their advanced technology during a keynote demonstration at the Bluetooth Developers' Conference on December 5, 2000 in San Jose, Calif. Using Red-M's recently announced 3000AS access server and Extended Systems' XTNDAccess Bluetooth protocol software and XTNDConnect synchronization software, the demonstration will show how corporate users can connect securely to the Internet and Intranet, and the synchronization of data between a handheld personal digital assistant (PDA) and the 3000AS access server.

Simon Gawne, vice president of marketing and business development, said, "We believe this emergent wireless technology has huge potential across many diverse market sectors and we are pleased to announce this alliance with one of the leading suppliers of core Bluetooth technology. Our combined expertise will help drive a very successful partnership."

Don Baumgartner, business unit manager for Extended Systems universal mobile connectivity division, added: "We believe Bluetooth will become the standard in wireless communications, and Red-M and Extended Systems are providing the infrastructure to help make this a reality. We are very excited to be working with the industry leader in Bluetooth networking solutions."

Extended Systems and Red M will demonstrate their award-winning Bluetooth wireless technology and products at the Bluetooth Developers' Conference in San Jose, December 5-7, 2000, booth 708 and 413 respectively.

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