Socket Communications and Cetronic Announce Plans to Build and Market A New Generation of Wireless Paging Products
NEWARK, Calif. — January 27, 1997 — Socket Communications, Inc. (SCKT: OTC, Bulletin Board) and Cetronic AB today announced a joint agreement to build and market the next generation of wireless data paging products to enable new applications and markets for mobile computing.
Based in Sundsvall, Sweden, Cetronic AB is the leading supplier of paging-based computer products in Europe. Socket is the leading supplier of paging-based mobile computer products in the United States. The agreement will produce a new line of products to serve both the United States and International markets. These products will take advantage of the newest paging protocols in each market and will incorporate technology from both companies, with first deliveries expected in the third quarter of 1997.
For the United States market, the first product will be a new generation of Socket's PageCard based upon the new FLEX paging protocol. Socket's PageCard is a data pager with a PC Card interface capable of receiving paged data or messages and downloading them into a Handheld PC or notebook computer.
Socket's current PageCard utilizes the existing POCSAG paging protocol. The new PageCard will be compatible with Motorola's FLEXstack One Way Software protocol and will support new and expanded software interfaces and features — enabling new applications and markets. The interfaces will remain compatible with existing software, ensuring compatibility with customers' current applications.
Socket will market its products under the PageCard brand name and will have exclusive world-wide marketing rights to the FLEX-based product.
For the European market, a similar device will follow based upon the ERMES protocol. Cetronic will market its products under their RadioCard brand name and will have world-wide marketing rights to the ERMES-based product. The devices will employ existing and developing features and will remain fully operational with both Socket and Cetronic existing software interfaces.
"As we have previously discussed, Socket's strategic plan for 1997 includes the introduction of a next-generation PageCard. This announcement is an affirmation of Socket's commitment, said Martin Levetin, president and CEO of Socket. We have learned a lot from our customers about the wireless capabilities they want. In response, we are building these devices to take advantage of the new, advanced paging protocols to deliver better wireless solutions."
The FLEX and ERMES protocols were chosen for their respective markets because they offer superior reliability, faster transmission speed, and a greatly increased efficiency in utilizing the paging infrastructure, allowing carriers to offer better service at a more economical price.
The advanced protocols make possible new, exciting applications for delivering time critical data to mobile workers, such as broadcasting or narrowcasting from the Internet or intranets.
"With increased attention on products classified in mobile categories such as the recently announced Handheld PCs, integrating wireless communications is a very important enhancement," said Andrew Seybold, industry consultant and editor-in-chief of Outlook on Communications and Computing.
"Socket's FLEX-based PageCard represents a valuable solution to provide mobile users with more reliable and efficient wireless communications."
The agreement between Socket and Cetronic positions the two companies to pool their resources and technologies to deliver timely and better products to their respective markets. This development and marketing agreement leverages the strengths of both companies, said Kurt Sjoblom, CEO of Cetronic. "The standard paging protocol in the European and U.S. markets are diverging, with FLEX in the U.S. and ERMES in Europe. To participate in these markets, it is necessary to make two different products with two different radios and protocol stacks.
"By combining our resources we are able to deliver both products, divide up the markets into traditional areas, and combine our technologies to produce superior features for the next generation of wireless messaging and data solutions," he said.
"Socket is capitalizing on the explosive growth in mobile computing fueled by the recent introduction of Windows CE devices," added Levetin. "Every Windows CE user is a potential customer for the PageCard, and we are going to ensure that they receive the data they need to stay competitive."
What Paging Industry Leaders Are Saying…
"The timing is optimal for introducing a FLEX-based product because the protocol is now present in virtually all U.S. markets. We have been selling the PageCard for one year, and it has proven a valuable product in today's market. A FLEX-based, receiver will deliver even more economical, flexible and reliable products to our customers. We are anxious to market new, higher volume applications for broadcasting and narrow-casting of data to corporate mobile users that the FLEX protocol better enables."
— Chris Hannis, national manager – paging, GTE Public Communications
"Microsoft believes that wireless communications is an important application for H/PCs using the Windows CE operating system. Socket's paging communications technology has added value to users of H/PCs. This announcement of a new generation product utilizing the FLEX protocol will enable new applications for delivering information to mobile workers,"
— Harel Kodesh, general manager, Consumer Appliance Group at Microsoft
"Our vision in creating the FLEX protocols was to bring new levels of functionality and service to paging networks by providing an efficient, robust form of text and data messaging. The announcement from Socket strongly supports that vision. The FLEX-based PageCard will better enable the delivery of time critical information to mobile workers carrying handheld computers. We will work to support Socket in implementing their vision."
–Gavin Bourne, FLEX marketing director, Motorola Core Technology Systems Division
"FLEX is one of the most important technical breakthroughs in wireless messaging in the last decade. Its enhanced error correction features enable users to receive data with greater reliability. Mobile communication tools like Socket's data pager are likely to find even more acceptance as advanced messaging capabilities are integrated into corporate enterprise systems. They can be used in a variety of vertical solutions."
–Ken Hilton, executive vice president of sales, PageMart Wireless, Inc.
"We welcome the news that Socket will be marketing a FLEX-based data pager. Our FLEX networks are ideal for delivering the kinds of information the PageCard makes possible. Alphanumeric paging is growing faster than any other application on our networks, and the computer-based generation and reception of information via our networks is a capability our customers are asking for. The new Socket PageCard will meet their demands."
–Don Shirley, director, Technology Solutions, PageNet
Socket Communications, Inc. develops and sells connection solutions for mobile computers, including Ethernet PC Cards, a family of Serial PC Cards and PC Card hardware, software, and services for wireless messaging. Sockets PageCard is a PC Card alphanumeric pager that downloads wireless data to a mobile computer.
The PageSoft messaging library includes development tools and middleware, send and receive applications, plus rules-based e-mail forwarding agents. Sockets connection solutions are based on its HIS chip technology featuring extremely low power consumption, making them ideal for battery-operated mobile computers and handheld devices. Details about Socket and its products may be found on Sockets web site at http://www.socketcom.com .
Sweden-based Cetronic AB is a privately held and venture capital-backed company that develops and markets software and hardware for radio frequency markets. Its products and proprietary technology are sold to network operators and corporations, as well as individual subscribers to Cetronic's broadcast services.
Its products include intelligent paging receivers for computers and television monitors, real-time signal repeaters, remote control-timed electrical switches, and information delivery server software.
Cetronic's products are used by utility companies to automatically control street lights, emergency networks to alert firefighters, hotels to display airline flight information, and brokerage firms to deliver financial information. Cetronic produces products for a number of radio frequency broadcast technologies including RDS, DARC, DAB, POCSAG, ERMES, and FLEX.
Forward Looking Statement:
Certain statements in this release are forward-looking statements reflecting current expectations. There can be no assurance that the Company's actual future performance will meet the Company's current expectations, and any such differences could be material, due to factors described in the Company's annual report (Form 10-KSB) for the year ended December 31, 1995 under "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the Company's quarterly report (Form 10-QSB) for the quarter ended September 30, 1996 under "Management's Discussion and Analysis of Financial Condition and Results of Operations."
Socket Communications, Inc., PageCard, PageCard Wireless Messaging Systems, SWiMS, PageSoft and Serial I/O Card are trademarks or registered trademarks of Socket Communications, Inc. All other brands or products herein are trademarks or registered trademarks of their respective holders.
For more information, contact: Annie Grace, A&R Partners 415/363-0982.
CONTACT:
Socket Communications
Howard Case, 510/744-2762
[email protected]
or
Cetronic
Kurt Sjoblom, 011/46-60-67-1300
[email protected]
or
A&R Partners
Annie Grace, 415/363-0982
[email protected]