Microsoft and Extended Systems Form Strategic Relationship To Deliver Windows CE-Based Enterprise Solutions

REDMOND, Wash., and BOISE, Idaho, Nov. 15, 1999 — Microsoft Corp. and Extended Systems Inc., maker of the award-winning XTNDConnect Server (formerly known as ASL-Connect), today announced a relationship with the objective of increasing customer access to secure, server-based synchronization and management solutions. Microsoft and Extended Systems will work together in a number of areas, including joint marketing and distribution efforts as well as technical collaboration for future products. This relationship marks both companies’ commitment to deliver improved device management solutions for corporate IT and better synchronization of business data for mobile knowledge workers.

Mobile professionals will now have direct access to their data anywhere, any time and with all the management and deployment tools administrators need to make it a viable solution for critical line-of-business data. XTNDConnect Server provides secure data access directly to Microsoft® Exchange or Lotus Notes/Domino Servers and ODBC-compliant databases such as Microsoft SQL Server TM , Sybase, Oracle, DB2 and others. In addition, the remote server monitor management tools integrate into the Microsoft Management Console, enabling an integrated management solution for the latest Microsoft BackOffice® family and Windows® 2000 operating system environments.

“We chose Extended Systems because of the breadth and flexibility of its solutions; the server-based synchronization in XTNDConnect Server complements our ActiveSync® 3.0 desktop synchronization, giving us the broadest and most flexible offering available to sync a PDA to critical data,”
said Rogers Weed, director, Productivity Appliances Division, Microsoft.
“Enterprise IT managers need to have one solution for all devices – both the Windows CE platform and competitive organizers – so, after review, we selected Extended Systems for its best-of-breed solution.”

Try and Buy Offer

To celebrate this relationship and the upcoming release of XTNDConnect Server version 2.3, Extended Systems will offer a 25-seat license for Windows CE-based Palm-size PCs and Handheld PCs (H/PCs) to sync with Microsoft Exchange Server, including all the management tools, at no charge 1 . This special license will allow companies to deploy XTNDConnect Server 2.3 with Microsoft Exchange Server to support synchronization with up to 25 Windows CE-based Palm-size and Handheld PCs at no cost 2 , representing a savings of over $6,000. To qualify for the offer companies need to have purchased a Palm-size or Handheld PC 3 . This offer is available today for free Web download via a link on (connect-time charges may apply).

In addition, for 60 days, companies will be able to test and deploy the entire XTNDConnect Server solution encompassing Microsoft Exchange, Lotus Notes and ODBC server sync to Windows CE-based and/or Palm operating system-based clients, with all the management tools and encryption technologies needed to run a full trial environment 4 . Following the 60-day trial, customers can continue using the software to manage and sync 25 Windows CE-based devices to Exchange Server. Customers that require Notes, ODBC, Palm OS sync, encryption or more than 25 seats after the 60 days will be able to contact Extended Systems directly for licensing options by calling (800) 235-7576. More information is available on the Web at .

Microsoft and Extended Systems are creating a support alliance to provide support for copies of the software downloaded from the Microsoft Web site 5 .

XTNDConnect Server Is Solving Problems Today

“We have been using XTNDConnect Server for 18 months to synchronize Windows CE-based devices with Lotus Notes,”
said Bob Waterfield, desktop service manager at British Airways.
“The XTNDConnect Server has not only allowed our users to synchronize locally in the office, but has also provided the capability to synchronize remotely when working away from the office. Another important feature with which we are particularly pleased is the management capability to monitor mobile devices.”

Enterprise-Ready Connectivity

Because Windows CE-based devices include built-in industry-standard CompactFlash Technology (CF), there is no need for expensive LAN cradles to maintain connection to the network. Mobile professionals can choose the fastest connectivity available to them – via wireless device, modem or LAN. CF modems, LAN cards and cellular phones are available from a range of suppliers, allowing the user or the corporation to have flexibility and choice of supplier for connectivity. In addition, CF components are a good investment for corporate IT because they are an industry-standard technology and can be used in other devices or any PC with a PC card slot.

About XTNDConnect Server

XTNDConnect Server provides IT managers with a complete solution for integrating Windows CE-based devices into the enterprise. It also includes the necessary tools to securely integrate and support these devices in the corporate environment.
“Our relationship with Microsoft is testimony that Extended Systems has the solutions that corporations can depend on for their mobile information management needs,”
said Steve Simpson, CEO and president, Extended Systems
“We envision Windows CE-based devices being increasingly used as strategic platforms for deployment of mission-critical applications.”

Key Features of XTNDConnect Server 2.3

XTNDConnect Server 2.3 will include the following:

  • Synchronization. XTNDConnect 2.3 synchronizes e-mail, contacts, calendar and tasks on Windows CE-based devices and Palm OS-based organizers directly with Lotus Notes/Domino, Microsoft Exchange servers and custom ODBC-compliant databases such as Microsoft SQL Server, Sybase, Oracle, DB2, Advantage database server and others.

  • Security. Certicom encryption assures a secure transfer of corporate data to and from the mobile device.

  • Management tools. Backup/restore, configuration and reporting capabilities make managing mobile devices easier. The remote server monitor is a plug-in for the Microsoft Management Console that integrates with the latest administration tools in Microsoft BackOffice and Windows 2000.

  • Application deployment. Setup wizards and an engine similar to the Visual Basic® development system Scripting Edition (VBScript) reduce the time for installation and setup of mobile devices and enable custom application development for server-based applications.

  • Supported platforms. XTNDConnect Server 2.3 can be used with Windows CE-based Palm-size and Handheld PCs as well as 3Com Palm OS-based devices.

About Extended Systems Inc.

Extended Systems Inc. (Nasdaq
) is a leading provider of mobile information management solutions that enable mobile users to access, synchronize, collect, print and retrieve information on demand. The company’s products include data synchronization software, wireless connectivity products (IrDA and Bluetooth-compliant), Internet access solutions, a complete line of network print servers, and client/server database management systems with remote access capabilities.

Founded in 1984, Extended Systems employs over 350 people worldwide and has an extensive domestic and international distribution network. The company has offices and subsidiaries in the United States and worldwide. More information is available at .

About Microsoft

Windows CE-based Palm-size PCs are mobile companions that provide users with the freedom to work more effectively, wherever their business takes them. More information about Windows CE-based Palm-size PCs is available at .

Founded in 1975, Microsoft (Nasdaq
) 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.

Except for historical information contained herein, the matters set forth in this press release, including the results of Extended Systems relationship with Microsoft, features of products that have not yet been released or developed, and Extended Systems ability to successfully negotiate a definitive marketing alliance agreement with Microsoft are forward-looking statements that are subject to risks and uncertainties. These include the impact of competitive products and pricing, alternative technological advances, the timely and successful development and market acceptance of new products and upgrades to existing products, the risk that the parties are unable to successfully negotiate and enter into a definitive agreement, and other risks as detailed from time to time in Extended Systems’ SEC filings, including its annual reports on Form 10-K and its quarterly reports on Form 10-Q.

1. The Try and Buy offer is open to North America only; updates for further international availability will be referenced on the offer Web site.

2. The Try and Buy offer is a license for server sync capability to licensed servers only. Customers must ensure that they are in compliance with the client access, or other licensing procedures of their server product vendor e.g., Lotus Notes, any ODBC database, Microsoft Exchange or the Windows NT® Server operating system.

3. The Try and Buy offer plan includes a limit of one 25-seat license per company. Companies with multiple Server locations qualify for one 25-seat license per site with over 50 full-time staff.

4. The 60-day evaluation version includes all the functionality in XTNDConnect Server version 2.3. At the close of the 60-day period, as reflected in the End User License Agreement, the license to trial for Lotus Notes, Domino, ODBC, Palm OS and Certicom functionality will expire. Microsoft and Extended Systems intend that the license to trial Microsoft Exchange Server Sync and Windows CE, including XTNDConnect Server management tools, will convert to a full license for the seats in use, up to a limit of 25.

5. Extended Systems plans to directly support customers downloading and installing the XTNDConnect Server before Dec.15, 1999. Microsoft plans to have support offerings available as of Dec. 15, 1999.

Microsoft, BackOffice, Windows, ActiveSync, Visual Basic and Window NT 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.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages.

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