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Esmertec reports continued growth in shipments and subscriber base for Q1 2008

Business develops in line with expectations, sustained by positive perspectives for Q2 2008

(PresseBox) (Dübendorf, Zurich, ) Esmertec(TM) (SWX: ESMN), a leading edge provider of software platforms, applications and services to communications device manufacturers and mobile telecom operators, announces that first quarter 2008 performance is in line with expectations: mobile and multimedia devices shipments grew by +33.4% and mobile subscriber base grew by 90.1% compared to Q1 2007.

Thomas Hornung, CEO of Esmertec, said: "In our fast changing markets, we maintained our leadership thanks to the strong relationships we have created with all of our customers. The launch of new products and services in the first quarter sustains our growth potential for 2008. Our new MAX solution - Mobile Application eXplorer - complements our Cellicium USSD offering with enhanced graphical user interfaces and unique accessibility features. Jbed for Multimedia strengthens our Java(TM) application engine portfolio with the aim to accelerate our diversification in the Blu-ray and home multimedia markets. Based on current market and competitive conditions, I am confident that Esmertec will achieve profitable growth for 2008".

In the Mobile & Multimedia Devices Segment, shipments by customers grew by +33.4% reaching 26.5 million units in the first quarter 2008, compared to 19.9 million in the first quarter 2007. As of 31 March 2008, Esmertec's software has been shipped in over 233 million cumulated mobile phones and consumer electronics devices. This growth is the result of improved penetration of Esmertec's technology in a greater number of device models.

Esmertec's market share of the total mobile phone market increased from 7.7% in Q1 2007 to 9.1% in Q1 2008. The slightly lower performance recorded in Q1 2008 compared to Q4 2007, is mainly due to a lower market share in the device markets of some of Esmertec's customers and to the postponement in H2 2008 of the commercialization of devices integrating Esmertec's Jbed engine.

Based on current market conditions, and considering the traditional seasonality of our business, favoring the second semester, and a promising order intake, Esmertec expects its Mobile & Multimedia Devices activities to continue to develop positively in 2008.

In the Mobile Operator Segment, Esmertec almost doubled its subscriber base compared to Q1 2007. As of 31 March 2008, 138 million mobile subscribers had access to Esmertec's Cellicium USSD solution through 24 mobile operators worldwide, compared to 72.6 million mobile subscribers in Q1 2007.

Esmertec's USSD services are quickly adopted and regularly used by the majority of the operators' subscriber as they are convenient, accessible by simply dialing a short code (ex: #121#) and offering a large range of content and services: mobile account top-ups, subscription to options, email, mobile payment etc.

Consequently, Esmertec sold additional platform capacity, measured in Message Per Second (MPS) to both its existing and new customers to support the increasing subscribers' usage and adoption. The total installed capacity deployed for Esmertec's customers reached 2,375 MPS in Q1 2008, compared to the 1,115 MPS in Q1 2007, an increase of +113%.

Esmertec anticipates gaining new customers in 2008, starting in Q2 2008 with deployments in new countries, as well as a strong increase in the total installed capacity.

In order to improve the understanding of its activities and outlook, Esmertec introduced new business indicators.

esmertec ag

Esmertec is a leading provider of Java(TM) in-device engines and mobile services platforms. The company's high-performance solutions enable consumers to easily discover and access content and services on any mobile phone. Esmertec's customer database has grown to more than 90 customers, including mobile operators and manufacturers of mobile handsets, set-top boxes and interactive televisions. Its in-device engines power 1 out of 10 new phones (shipped in more than 260 million devices) and its USSD mobile services platforms serves more than 146 million mobile subscribers world-wide.

Esmertec is a founding member of the Google initiated Open Handset Alliance, delivering customized solutions for Android, the mobile platform.

Founded in 1999, Esmertec is headquartered in Zurich-Switzerland with subsidiaries in China, France, South Korea, and the USA, and offices in Taiwan and the UK. Since 2005, Esmertec is listed on the SWX Swiss Exchange (ESMN).
www.esmertec.com

Esmertec and Jbed are trademarks of Esmertec AG.
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