Ericsson Licenses Geoworks' GEOS Operating System Platform for Range of Affordable, Next-Generation Smart Cellular Phones

ALAMEDA, Calif. (January 23, 1996) -- Geoworks (Nasdaq/National Market System Symbol: GWRX) and Ericsson today announced that the two companies have formed an alliance to deliver a range of affordable "smart phones," next-generation cellular phones that combine voice and data transmission capabilities. Under the terms of the agreement, Ericsson has licensed Geoworks' GEOSŪ open operating system platform as the foundation for future Ericsson smart phones slated for worldwide introduction beginning early 1997. Ericsson is the leading cellular infrastructure provider and a leading provider of digital handsets worldwide.

"Geoworks and Ericsson share a vision of affordable, high-performance next-generation cellular phones that support anytime, anywhere communications," said Anders Torstensson, executive vice president of Ericsson, Inc. "Ericsson has selected GEOS for its proven technology, efficient, compact design and flexible user interface that will enable us to introduce a highly differentiated family of smart phones that are easy to use and meet a range of user requirements."

GEOS, a graphical operating system, requires limited hardware resources and provides advanced functionality. This enables hardware manufacturers to deliver products on an open platform for the addition of third-party software and PC connectivity. In addition, Geoworks' patented user interface technology provides the unique ability for partners to customize the features of their products for optimal ease-of-use and increased product differentiation. GEOS has been optimized for the smart phone category with its support for leading communications protocols and its ability to track and organize a variety of messages, including e-mail, fax, voice and paging.

"By partnering with Ericsson, a driving force in the expansion of the cellular phone industry, we will be able to work together to deliver affordable smart phones that will leverage the digital cellular infrastructure to provide extensive value to users worldwide," said Gordon Mayer, president and chief executive officer of Geoworks. "Ericsson's selection of GEOS as its standard operating system software for smart phones demonstrates commitment to and accelerates momentum in this exciting new product category, which combines voice and data communications."

According to industry analysts, by the end of 1995, there were 85 million cellular and Personal Communications Services (PCS) phones in use globally with some 23 million of these used by American subscribers. The U.S. market is estimated to be growing annually by 25 percent. The emergence of the enhanced class of digital communications products will combine cellular phone and wireless data capabilities. These products will also capitalize on the growing popularity of cellular communications and the emerging PCS networks.

About Geoworks

Geoworks develops and markets the GEOS operating system and application software for the emerging consumer computing devices (CCD) market. GEOS is a powerful, compact, object-oriented operating system platform intended for use in a range of mobile computing devices including electronic organizers, smart phones and PC companions. The company's continued focus on efficiency and enhanced functionality is designed to enable the development of affordable, feature-rich devices for the mobile device market.

GEOS licensees include leading manufacturers such as Ericsson, Toshiba Corporation, Hewlett-Packard Company, Nokia, Brother International Corp. and Canon Business Machines.

For additional information on Geoworks and the GEOS operating system, contact Geoworks at 1-510-814-1660

About Ericsson

Ericsson's 80,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications.