Navitel Communications Inc. & Philips Semiconductors Establish Strategic Technology Partnership; Companies Collaborate to Develop Web Screen Phone Internet Access Device

The Original Press Release

Navitel Communications Inc. & Philips Semiconductors Establish Strategic Technology Partnership; Companies Collaborate to Develop Web Screen Phone Internet Access Device

MENLO PARK, Calif. — January 8, 1997 — Navitel Communications, a privately-held pioneer in the Internet access device market, and Philips Semiconductors today announced a strategic technology partnership to develop the Navitel TouchPhone, a Web screen telephone that provides everyday users with extremely easy access to the Internet and the ability to send and receive e-mail.

Philips Semiconductors is supplying key enabling technologies for the TouchPhone including the TwoChipPIC chip set — which provides the bulk of the device's processing and peripheral functions.

Already established as the industry's most highly integrated solution for hand-held computing/communications units, the TwoChipPIC is ideally suited to the TouchPhone because it is designed to minimize external components which reduces complexity and cost.

"The web screen phone represents a brand new product category that we believe will be a significant market opportunity," said Stefan Braken-Guelke, General Manager at Philips Semiconductors. "We're always looking for innovative platforms to embed our semiconductor technology, and Navitel's TouchPhone is an ideal match. Because of the enormous potential for the TouchPhone, we're investing key resources for this strategic technology relationship with Navitel."

Navitel's TouchPhone, which is the industry's first Internet screen phone device to include the Windows CE operating system, used under license from Microsoft, will provide consumers and business users with a cost-effective and convenient tool for communicating and accessing information through the Internet.

The TouchPhone also features Microsoft's Pocket Internet Explorer technology which provides a standard web browser. Designed as a communications appliance, the TouchPhone is always turned on and automatically checks e-mail and downloads user-selected Internet content throughout the day.

Personalized information is simply stored on the device, along with e-mail and voicemail messages. With TouchPhone, users can access the Internet without having to wait while their PC or television powers up, logs on to the Internet, and downloads their e-mail or Web site. Unlike a general purpose PC, the Web screen telephone requires no complex configuration or programming. The user simply plugs it in, turns it on, and it works.

"Securing a strategic technology partnership with a world-class technology provider such as Philips Semiconductors signifies the depth of the TouchPhone concept," said Robert Simon, executive vice president of Navitel. "We're integrating best-of-breed technologies to develop an entirely new market segment that we believe will gain acceptance among the 66% of all consumers who have never before used a computer or experienced the Internet."

Practical Details

The TouchPhone provides complete standards-based Internet access and Web browsing capabilities with Microsoft Pocket Internet Explorer technology adapted for TouchPhone display. Users can send and receive email, files and content from the World Wide Web.

In addition, popular time and information management functions, including an address book, calendar, alarm clock and calculator are integrated. Users are provided with a large six inch display screen that uses standard 640 x 480PC VGA. The touch screen is designed for quick and simple use and comes equipped with a stylus. A full QWERTY keyboard with a hideaway drawer is also provided.

TouchPhone also delivers advanced telephony features including a two-line standard telephone; hands-free speakerphone; handset for privacy; hold, mute and flash buttons; volume controls for ringer, handset and speaker; and support for telephone industry caller ID and call waiting ID.

The phone displays name, number, date and time and signifies voice and email messages. A call log holds up to 500 entries which are automatically transferred into the address book. The address book can hold up to 2,000 names with phone numbers, email and mailing addresses — all of which can be synchronized with a desktop PC.

Navitel also equips the TouchPhone with an information service that allows users to configure the system to automatically retrieve news, weather, sports and other information.

Pricing and Availability

The Navitel TouchPhone will be unveiled at the Consumer Electronics Show in Las Vegas, Nevada the week of January 6, 1997. Commercial availability of the TouchPhone is scheduled for Q2 1997. Retail pricing starts at $ 299 for a quarter VGA, 14.4 modem version without Web browsing; the $ 499 version features full VGA display with a 28.8 modem and complete Web browsing with Microsoft Internet Explorer.

Navitel is in negotiations with manufacturing and distribution partners and will soon announce agreements with major retail and telephone companies.

About Philips Semiconductors

Philips Semiconductors, Inc., a subsidiary of Philips Electronics North America Corporation and an affiliate of Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the eleventh largest semiconductor supplier in the world.

Philips Semiconductors' innovations in digital audio, video and mobile technology position the company as a leader in the consumer, multimedia, and digital communications markets. Sales offices are located in all major markets around the world and are supported by regional application labs.

About Navitel Communications

Navitel Communications Inc. is a leading developer of hardware products and services integrating Internet access with telephone devices for the consumer and business markets.

Navitel is a privately held California Corporation founded in 1996 by the company's CEO, Randy Adams, previously the founder and president of the Internet Shopping Network, and Executive VP of Marketing, Robert Simon, previously the Director of Lotus West for Lotus Development Corporation. Additional information can be found at the company's web site: www.navitel.com .

CONTACT:
Navitel Communications
Robert Simon, 415/462-9179
or
Dave & Bairey Communications
Peter Dave, 415/882-9905
[email protected]
or
Philips Semiconductors
Jodi Guilbault, 408/991-2332
[email protected]