Bitfone Secures $19 Million Series B Funding Led by St. Paul Venture Capital

SEATTLE - September 16, 2002 - Bitfone Corporation, the leading provider of mProve™ technology, the wireless industry’s first solution that delivers over-the-air operating system updates directly to customers’ phones, today announced the completion of a $19 million Series B round. The financing round was led by St. Paul Venture Capital. Bitfone’s Series B syndicate is comprised of a collection of international investment companies including 3i, Nokia Venture Partners, Nexit Ventures, and CIR Ventures.

In conjunction with Series B, Bitfone announced that Rod Randall, general partner of St. Paul Venture Capital, and Gerald Brady, partner of 3i, have joined Bitfone’s board of directors. These new investors and board members bring exceptional operating experience and industry relationships to Bitfone. The additional capital will be used to continue market penetration of Bitfone’s mProve™ technology and accelerate feature enhancements in ongoing cooperative efforts with global wireless manufacturers.

“We are extremely pleased with the strong support from our world-class investors. Bitfone has been making great strides in our global efforts to commercially deploy mProve and will continue to lead the market in providing over-the-air firmware update solutions to mobile phones,” said Gene Wang, CEO of Bitfone.

Bitfone’s mProve technology enables wireless carriers and mobile phone manufacturers to significantly reduce costs and increase revenue through over-the-air phone enhancements.

“Bitfone has earned credibility in the investment community and the wireless industry by successfully providing a vital, core technology for the future of mobile handsets,” indicated general partner Rod Randall. “Raising this level of capital in the current market climate is a testament to Bitfone’s team and technology.”

“The technology enables the delivery of fault-tolerant, over-the-air firmware updates directly to customers’ phones,” said Gerald Brady, partner at 3i in Menlo Park. “Bitfone’s solution is a global opportunity as it fills a long-lasting need for wireless customers. With 3i’s international network, Bitfone has access to our global portfolio of over 800 tech companies, global partners, as well as to strategic advice and sector expertise. We are pleased to provide Bitfone not only with the financial resources but also to bring value to continue its success and global expansion.”

Bitfone also announced it has moved to expanded corporate headquarters in Laguna Niguel, CA to accommodate additional product development, quality engineering, and international sales staff. Situated just 60 minutes north of San Diego, “Laguna Niguel is an ideal location to tap the wireless talent pools in San Diego and the exceptional software talents of Southern California,” said Gene Wang. Bitfone’s headquarters are located at 32451 Golden Lantern, Suite 301, Laguna Niguel, CA 92677.

About Bitfone Corporation
Bitfone enables carriers and mobile phone manufacturers to reduce costs and increase revenue by enhancing the user experience. Bitfone’s mProve™ solution is a carrier-class software infrastructure that enables the delivery of over-the-air updates of firmware and software to mobile phones, resulting in reduced warranty, recall and customer service costs and decreased customer churn. mProve is the wireless industry’s first solution to update a mobile phone’s core operating system – over-the-air – after the point of sale. Bitfone is a global company headquartered in Laguna Niguel, California. Bitfone’s investors include Nokia Venture Partners St. Paul Venture Capital, 3i, Nexit Ventures and CIR Ventures. Additional information is available at www.bitfone.com.

About St. Paul Venture Capital
St. Paul Venture Capital is one of the largest early-stage venture capital firms in the United States with $3 billion in committed capital and offices in Boston, Minneapolis and Silicon Valley. The firm, founded in 1988, invests primarily in the areas of Communications Technology; Software and Services; and Health Care. Additional information can be found at the firm’s website at www.spvc.com.

About 3i
3i is a leading international venture capital company with U.S. offices in Menlo Park, CA and Waltham, MA. Operating since 1945, 3i has invested worldwide over $20 billion, including co-investment funds, through its 16-country, 3-continent network of 36 offices. 3i leverages this worldwide presence to add value to its portfolio companies and investment partners. In the United States, 3i concentrates on early and later stage technology investments in companies with the potential to be leaders in their markets. Outside the USA, 3i invests broadly in private equity and venture capital. Visit 3i and its portfolio at www.3ius.com.

About Nokia Venture Partners
Nokia Venture Partners is a leading global venture capital firm based in Menlo Park, California. Launched in 1998, Nokia Venture Partners has USD$650 million under management and leads investments in early stage mobile technology companies around the world. The fund is backed by a number of value add limited partners and has a strong track record of leveraging its combined resources, experience and contacts to help build successful mobile businesses. The firm also has offices in Washington DC, London, Helsinki, Seoul, Hong Kong and Tokyo. For more information, visit http://www.nokiaventurepartners.com.

About Nexit Ventures
Nexit Ventures is a venture capital firm with offices in Helsinki, Finland and Saratoga, California. The EUR 100 million fund is sourced from a broad pool of prominent investors and leading industry players in Scandinavia, central Europe, the United States and Asia. Nexit bridges the two hot beds of Internet, communications and wireless development, namely Silicon Valley and Scandinavia's Wireless Valley. The Nexit team consists of experienced individuals with backgrounds in both start-ups and market leading corporations, in high tech and in venture capital, internationally. www.nexitventures.com

About CIR Ventures
CIR Ventures is an early-stage venture capital firm, investing in software and communications technology. The firm is funded primarily by CIR Group (Milan:CIRX), the industrial holding company of the De Benedetti Group, and has offices in Palo Alto, California and Milano, Italy. CIR Ventures adds value by leveraging contacts and synergies of CIR Group. www.cirventures.com