Microsoft and Vadem Collaborate to Speed Development Of Mobile Computing Products

REDMOND, Wash., and SAN JOSE, Calif., Oct. 27, 1999 — Microsoft Corp. and Vadem today announced an alliance to drive the innovation of applications and services for the growing mobile computing and handheld device markets. Under the terms of the agreement, Microsoft has purchased the rights to the natural handwriting and ink compression technology including the award-winning CalliGrapher® natural handwriting recognition software developed by ParaGraph® , a Vadem division. In addition, Microsoft has made an equity investment in Vadem to help speed its development of future Microsoft® Windows® CE operating system-based products and services.

“Microsoft is intently focused on developing innovative and forward-thinking solutions for the growing mobile market,”
said Rogers Weed, director of marketing in the Productivity Appliances Division at Microsoft.
“Vadem’s proven ability to develop innovative mobile products and solutions make it a key partner, and we are pleased to work with the company on the development of future solutions for knowledge workers.”

“This is a positive step forward for the emerging mobile market and will benefit the growing number of mobile-device customers,”
said John Zhao, chairman, CEO and president of Vadem.
“Combining the expertise and efforts of Vadem and Microsoft in this area will greatly accelerate development of new breeds of highly portable, affordable and intuitive mobile products and services.”

Vadem will continue to support, develop, sell and market CalliGrapher and its complete portfolio of award-winning technologies and solutions. Today, these include the Windows CE-based Clio TM PC Companion mobile device with the patented SwingTop TM design; the PenOffice TM software suite of annotation and handwriting recognition applications for the Microsoft Windows operating system; and MorphInk TM , an innovative application that allows users to quickly and easily create super-smooth animations for Web sites.

About Vadem

Vadem designs and develops unique mobile information appliances, software and Internet service solutions that simplify information access and facilitate communications from anywhere at any time. ParaGraph, a division of Vadem, develops award-winning pen and Internet software products and technologies. Founded in 1983, Vadem is a privately held company with headquarters in San Jose, Calif. Visit Vadem’s Web site at http://www.vadem.com/ for more information.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
“MSFT”
) is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software – any time, any place and on any device.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Other product and company names herein may be trademarks of their respective owners.

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