Extended Systems Wins Round One in Pumatech Patent Case

12/12/2003 - Extended Systems (NASDAQ: XTND) announced that the Court has ruled in favor of Extended Systems over Pumatech (NASDAQ: PUMA) to allow an Extended Systems' motion to amend its counterclaims and affirmative defenses in the pending patent litigation to include inequitable conduct.

This defense is based upon Pumatech's alleged failure to disclose relevant prior art to the U.S. Patent & Trademark Office ("PTO") during the application process for U.S. Patent Nos. 6,141,664 ("the '664 patent") entitled "Synchronization of Databases with Date Range" and 6,212,529 ("the '529 patent") which is a continuation-in-part of the '664 patent, and is entitled "Synchronization of Databases Using Filters".

Extended Systems recently uncovered evidence of the existence and materiality of the IntelliLink for Windows version 3.0 prior art, a product sold by IntelliLink Corporation. Pumatech acquired IntelliLink approximately 3 years before the patent applications for the '664 and '529 patents were filed, but failed to disclose this product to the PTO during the prosecution of the patents. If this defense is successful at trial, the '664 and '529 patents may be held unenforceable by the Court. Extended Systems believes that a finding by the Court that these two patents are unenforceable because of Pumatech's inequitable conduct would be a serious blow to the breadth of Pumatech's patent portfolio.

This announcement follows several other positive developments for Extended Systems in the patent litigation. On November 14, 2003, the Court granted Extended Systems' motion for summary adjudication for non-infringement of U.S. Patent No. 5,943,676 ("the '676 patent). As a result, the '676 patent is no longer part of the litigation. Three of Pumatech's patents (U.S. Patent No. 5,392,390, the '664 patent, and '529 patent) are currently being reexamined by the PTO based on petitions filed by Extended Systems earlier this year. In August, Extended Systems received a positive ruling regarding claim construction for six of the eight patents involved in the patent infringement action. The trial is scheduled to commence on April 12, 2004.

"From the beginning of this suit, Extended Systems has been firm in its belief that none of our products infringe any valid Pumatech patent," said Charles Jepson, Extended Systems' CEO and president. "Our discovery of prior art for these two patents, makes us even more confident that we will have a favorable outcome in this litigation."

About Extended Systems
Extended Systems provides the expertise, strategy and solutions to help enterprise organizations streamline their business processes through mobile technology. The company's mobile solutions suite enables companies to mobilize critical enterprise applications such as e-mail, field service, sales force automation (SFA), enterprise resource planning (ERP), and customer relationship management (CRM). Extended Systems has more than 3,000 enterprise customers worldwide and key alliance relationships with Ericsson, HP, Handspring, IBM, Microsoft, Motorola, Nokia, Palm, RIM, Sharp, Siemens and Toshiba.

Founded in 1984, Extended Systems has offices and subsidiaries in the United States and worldwide. For more information, call 1-800-235-7576 or visit the company Web site.

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