SOURCE: Red Bend Software

January 15, 2008 08:57 ET

Red Bend Software Announces Fourth Quarter Achievements; Company's Mobile Software Reaches 255 Million Devices Worldwide

Global Adoption of Red Bend's FOTA Solution Combined With Expansion Into M2M Modules and Mobile Broadband PC Cards Position Company for Significant Growth in 2008

WALTHAM, MA--(Marketwire - January 15, 2008) - Red Bend Software, the market leader in Mobile Software Management and Firmware Over-the-Air (FOTA) updating solutions for mobile devices, today announced record achievements in 2007. In the fourth quarter, Red Bend's market-leading vCurrent® Mobile FOTA client software reached 255 million mobile phones, exceeding the company's forecast of 250 million. This achievement represents a growth of 219% since fourth quarter 2006, when vCurrent Mobile was shipping in 80 million handsets. In addition, in 2007 Red Bend expanded into new markets such as machine-to-machine (M2M) modules and mobile broadband PC cards, enabling the company to more than double its number of licensees in one year.

In the fourth quarter, 20 new mobile phone models shipped with vCurrent Mobile, making Red Bend's FOTA solution available in 137 handsets since 2005 from manufacturers including Motorola, Sharp and Sony Ericsson. Also during the quarter, six manufacturers signed license agreements to adopt Red Bend's mobile software management solutions, including its standards-based device management client. This surge enabled Red Bend to close 2007 with 21 licensees, compared to nine in 2006. Red Bend forecasts that in first quarter 2008, its software will reach 300 million mobile devices, including mobile phones, mobile broadband PC cards, and M2M wireless modules.

"Our tremendous growth in 2007 was fueled by the increasing complexity of mobile software and the need by operators and manufacturers for a unified solution to manage all devices on the network," said Yoram Salinger, CEO of Red Bend Software. "Red Bend is making great strides to realize the company vision of ensuring that any software on any device is manageable at any point in the device lifetime. In 2008, Red Bend will move to become the preferred provider of client-side software management solutions for not only mobile phones, but also for other connected wireless devices."

FOTA Frenzy in 2007

In a November 2007 study, "Support for Device Management in Mobile Handsets: 2007-2009," independent analyst firm OVUM reported on the rapid adoption of FOTA by manufacturers and operators globally, noting that FOTA software is now embedded in nearly half of all new handsets shipping. OVUM forecasts that by the end of 2009, 85% of new handsets will include FOTA software. The same study named Red Bend the FOTA market share leader, powering 49% of all new FOTA-enabled mobile phones. Download the study at: http://www.redbend.com/ovumstudy.

Red Bend 2007 FOTA Shipments:

                            Q4 07        Q3 07        Q2 07        Q1 07
---------------------------------------------------------------------------
(Shipments per Quarter)
Mobile Phones
with vCurrent Mobile      55 million   50 million   45 million   25 million

Phone Models
with vCurrent Mobile          20           22           19           18

(Cumulative to Date)
Mobile Phones
with vCurrent Mobile     255 million  200 million  150 million  105 million

Phones Models
with vCurrent Mobile         137          117           95           76

Expansion into M2M and PC Cards

With FOTA software successfully being utilized to reduce support costs and increase service adoption, manufacturers and operators are now adding remote management capability for other networked devices. In 2007, Red Bend brought the benefits of mobile software management to M2M modules and mobile broadband PC cards, opening up new revenue streams for the company for both its firmware updating and device management client software.

2007 highlights include:

--  Three contracts for M2M devices
--  Five contracts for mobile broadband PC cards
--  Red Bend joined the M2M Consortium in Japan, a country leading in the
    use of M2M technology for applications such as vending machines and
    telematics
    

"Open Mobile Alliance (OMA) Device Management (DM) became the preferred global standard for remote management of mobile phones in 2007," said Jessica Figueras, Practice Leader of Service Infrastructure at OVUM. "Advanced device management technologies are now in a phase of rapid growth, creating opportunities for service providers and handset OEMs to add value for customers."

Continued Innovation and Market Firsts

In 2007, Red Bend continued to break boundaries in mobile software management, improving the mobile user experience and increasing revenue opportunities for operators, manufacturers and software developers. Market firsts in 2007 included:

--  vCurrent Mobile version 5 - Introduced the first FOTA solution to
    update firmware while a consumer is using the phone, without taking the
    device offline. Plus, revertible updates give operators the ability to
    rollback software if needed, without requiring another connection to the DM
    server. In recognition of its innovation, vCurrent Mobile was named a
    finalist in GSM Association's Asia Mobile Innovation Awards 2007.
--  vRapid Mobile™ - Released a new product suite, revolutionizing the
    way manufacturers and platform providers bring mobile phones to market, and
    how operators and software developers deliver mobile services. With support
    for the emerging OMA DM SCOMO standard, vRapid Mobile is the first mobile
    software management solution that can update, add and remove individual
    embedded software components on any mobile phone.
    

About Red Bend Software

Red Bend Software helps mobile phone manufacturers and network operators to accelerate the adoption of new services and features, respond rapidly to customer needs, and reduce support costs through mobile software management solutions. LG Electronics, Motorola, NEC, Sharp, Sony Ericsson, and other large handset manufacturers use Red Bend's firmware over-the-air (FOTA) mobile client software to quickly and reliably deliver compact firmware updates to more than 255 million mobile phones in the hands of consumers. Founded in 1999, Red Bend Software is a privately held, venture capital-financed company with offices in China, Israel, Japan, Korea, the U.K and the U.S. More information is available at www.redbend.com.

Contact Information

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