BITFONE MERGES WITH DIGITAL TRANSIT IN ORDER TO LEVERAGE BOTH COMPANIES’ TECHNOLOGIES TO DELIVER NEXT GENERATION SERVICES TO GLOBAL WIRELESS CARRIERS

MOUNTAIN VIEW, Calif., and DANA POINT, Calif.- November 12, 2001 - Bitfone Corporation, a software infrastructure provider for media-rich messaging and personal content services for wireless carriers, and Digital Transit, a provider of carrier-class software infrastructure for over-the-air updates of firmware on mobile devices for wireless carriers, today announced the merger of the two companies. Operating under the Bitfone name, the company will leverage united sales and marketing teams and expanded engineering efforts to accelerate the sales and adoption in the United States, Europe, and Asia of Bitfone's iBrokerä and Digital Transit's mobile device software updates product lines. The merged company boosts the bottom-line profits of global wireless carriers by providing immediate revenue opportunities through media-rich messaging and mobile Java applications while potentially saving the industry an estimated $3 billion per year through device software upgrades.

"This merger gives us the opportunity to rapidly scale in order to immediately meet the demand and leverage the exploding market opportunity for wireless data services," said Gene Wang, chairman and CEO of Bitfone. "Together, we provide the one-two punch that enables wireless carriers to drive revenues with mobile multimedia messaging while simultaneously reducing costs by extending the life and functionality of mobile devices."

"Digital Transit's handset technology expertise is a perfect complement to Bitfone's server and application technology expertise," said Patrick Lilley, CEO and co-founder of Digital Transit Inc. "In addition, the entrepreneurial spirit of both companies will ensure that we retain a culture that will capitalize on our current strengths while leading us to the forefront of innovation for mobile devices."

The combined company will be headquartered in Mountain View, California, and will retain Digital Transit's office in Dana Point, California. Gene Wang, chairman and CEO of Bitfone, will remain chairman and CEO. Patrick Lilley, co-founder and CEO of Digital Transit, will serve as executive vice president of corporate marketing and development. Patrick O'Neill, co-founder and CTO of Digital Transit, will become the executive vice president of handset technologies.

"The merger of Digital Transit and Bitfone will drive technology that will help wireless carriers and their subscribers," said Jim Forbes, editor, DemoLetter and producer of DEMOmobile. "iBroker with iShare applications -- which allows consumers to create, send and receive messages and content that include rich media -- helps increase carrier revenues. Digital Transit's technology enables over-the-air updates of firmware, driving down customer care and logistics costs. The merger strengthens Bitfone's ability to help carriers increase profits, reduce customer churn and offer subscribers the latest, most compelling value-added services."

“This merger creates a stronger entity that leverages both companies’ technologies to deliver multiple products on a common platform,” said John Malloy, managing partner of Nokia Venture Partners. “As the lead investor for both companies we are excited to see the new Bitfone deliver carrier grade software solutions that drive average revenue per user (ARPU) and cost savings to the wireless carrier market.”

European Debut of iBroker
The combined company's first public appearance will be at the Nokia Mobile Internet Conference, November 20-21, in Barcelona, Spain, where the company's iBroker software infrastructure will debut and be demonstrated in Europe for the first time. As part of its annual conference, Nokia has selected Bitfone to demonstrate its revenue generating media-rich messaging software infrastructure on its latest handset: the Nokia Communicator 9210. The international debut of iBroker falls on the heels of the successful U.S. launch of iBroker at DEMOmobile 2001.

About Digital Transit's Over-the-Air Update Technology
Digital Transit's patent-pending solution provides wireless carriers and mobile device manufacturers the ability to deliver over-the-air updates of firmware and applications to mobile devices. The technology remotely solves large-scale firmware and software problems, resulting in decreased warranty and recall costs, reduced customer service costs, and higher customer satisfaction. Digital Transit's technology requires no hardware changes on mobile devices, and is easily customized for different network protocols and embedded operating system platforms. Additional information is available at www.digitaltransit.net.

About Bitfone Corporation
Bitfone develops products for media-rich personal messaging, mobile Java applications and device software upgrades that offer global wireless carriers new revenue streams while significantly reducing the cost of handsets. Bitfone's iBroker is Java-based carrier-grade software infrastructure that enables sharing of media-rich and personal content so carriers can enhance the user experience on the wireless network. Bitfone's Digital Transit technology provides wireless carriers and mobile device manufacturers the ability to deliver over-the-air updates of firmware and applications to mobile devices. Bitfone is a global company headquartered in Mountain View, California. Additional information is available at www.bitfone.com.