SOURCE: Red Bend Software

July 10, 2007 08:30 ET

Red Bend Software Achieves 43% Increase in FOTA Shipments in Q2 2007

Company's vCurrent® Mobile Solution Reaches 150 Million Mobile Phones

WALTHAM, MA--(Marketwire - July 10, 2007) - Red Bend Software, the market leader in Mobile Software Management and Firmware Over-the-Air (FOTA) updating solutions for mobile phones and wireless modules, today announced record growth for its FOTA solution. In the second quarter, Red Bend's vCurrent® Mobile software shipped on 45 million mobile phones, propelling Red Bend to 150 million total units shipped to date -- and exceeding its Q2 forecast by 10 million. This represents an increase of 43 percent over first quarter 2007, when there were 105 million phones shipped with vCurrent Mobile.

In addition, 19 mobile phone models were launched with vCurrent Mobile during the quarter, bringing the total number to 95 Red Bend-enabled handsets from manufacturers including Sony Ericsson Mobile Communications, Sharp, NEC and others. Red Bend forecasts that its software will ship on 200 million mobile phones by end of Q3.

Market Growth Driven by Product Innovation and Performance

In the second quarter, Red Bend introduced new product innovations that change the paradigm of how FOTA updates are performed. Version 5 of vCurrent Mobile, available June 30, features Background Updates™, which allows firmware updates to be performed while phones are in use. Previously the mobile phone had to be powered down during the update, which could take up to 10 minutes. Version 5 also includes Revertible Updates™, which creates new revenue opportunities for operators by enabling them to offer new features and applications during a trial period, and then remove the software from the phone if the consumer does not subscribe. These innovations, as well as performance improvements to the update file size and resource requirements, enhance the mobile user experience and help drive mass-market adoption of over-the-air software update services.

"Red Bend already had the tightest FOTA code-generation capability; the new release raises the bar again," said Tony Rizzo, Sector Head with The 451 Group, a technology industry analyst company focused on the business of enterprise IT innovation, in his report. "Coupled with the toolset announced earlier this year for component management, the new capabilities do indeed also raise the bar on this end." This comment appeared in an independent report, titled, "Red Bend turns FOTA into an 'anywhere anytime' deal, complete with rollbacks" which was published on June 22, 2007 (see Editor's Note below).

Other Q2 2007 milestones for Red Bend include:

--  Customer Wins -- Red Bend announced its first customer in China with
    the addition of T3G Technology. Also during the quarter two new customers
    signed license agreements to bring Red Bend FOTA-enabled devices to market
    in 2008. This brings the total number of licensees to 13. In addition, Red
    Bend expanded licensing agreements with two existing customers to provide
    vCurrent Mobile to new platforms.
    
--  Red Herring Award -- Red Bend was named one of the three most
    promising software start-ups in 2007 by Red Herring Magazine and the Israel
    Venture Association. Red Bend was chosen for its vision, technological
    achievement, market leadership and innovation.
    
"Quarter after quarter, we successfully execute on our business strategy and deliver on our vision of improving the mobile user experience through over-the-air mobile software management," said Yoram Salinger, CEO of Red Bend Software. "Our record of performance and innovation continues to prove the value that Red Bend and FOTA bring to our customers and the mobile market."
                            Q2 07        Q1 07        Q4 06        Q3 06
                         ----------   ----------   ----------   ----------
(Shipments per Quarter)
Mobile Phones
 with vCurrent Mobile    45 million   25 million   35 million   17 million
Handset Models
 with vCurrent Mobile    19           18           17           16

(Cumulative to Date)
Mobile Phones
 with vCurrent Mobile   150 million  105 million   80 million   45 million
Handset Models
 with vCurrent Mobile    95           76           58           41
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 150 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.

Editor's Note: The 451 Group's report, "Red Bend turns FOTA into an 'anywhere anytime' deal, complete with rollbacks" referenced above, is an independently-produced report that was neither sponsored by nor otherwise funded directly by Red Bend. The report and its entire contents are the sole property of The 451 Group, copyright 2007, and are reproduced here by permission. The entire contents of this report are available at www.the451group.com.

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