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Press release -Esmertec Acquires Mobile Division of CoreTek Systems, China

Esmertec establishes leading presence in Asia with highly competent R&D, sales and support teams in China, Korea, Japan, Hong Kong and Taiwan

Duebendorf-Zurich – February 2, 2005 – Esmertec™, a leading provider of software solutions for mobile phones and embedded devices, and CoreTek Systems Incorporated, a leading company in China offering embedded software and development tools, announce today that Esmertec has acquired the entire mobile division of CoreTek Systems in China, including intellectual property, skilled R&D and project management teams, and an experienced sales force.

“CoreTek is a leading player in providing embedded and mobile products in China. We have chosen to spin off the mobile division to Esmertec, a well established global player, to internationalise our products fast and efficiently,” said Mingyuan Zhu, President, CoreTek Systems.

Esmertec is in the process of registering and establishing a new company, Esmertec (China), where the resources, talents and assets from Esmertec and CoreTek Mobile will be combined. Esmertec (China) will be staffed with dynamic local sales and pre-sales personnel, an expert R&D team, professional customer project managers and engineers, and will continue to deliver the existing high-performance products and quality services.

Professor Lei Luo, VP & CTO of CoreTek, will be joining Esmertec (China) as its new CTO. She commented, “In addition to gaining a foothold in international markets, we see this agreement as the stepping stone for our current mobile products to gain dominance in China. My job will be to continue delivering innovative cutting-edge technology and products.”

This acquisition is Esmertec’s latest expansion activity in Asia, following the set-up of a customer support centre in both Taiwan and Korea, and Esmertec taking majority stake in eValley, Esmertec’s technology partner in Japan.

“Through this acquisition and Esmertec’s expansion in Asia, we have become one of the largest players providing software solutions to reference design houses and manufacturers of embedded devices such as mobile phones, set-top boxes and home gateways in Asia,” said Alain Blancquart, CEO, Esmertec. “It is our plan to grow Esmertec’s operations in Asia by end of 2005 to around 200 people, out of which over 100 will be based in China. These operations will provide best-in-class embedded software solutions, services and support to customers in China, Asia and globally.”

About Esmertec

Esmertec is a leading provider of software solutions and technologies for mobile phones, PDAs and embedded devices. Esmertec’s solutions are applied in telecommunication, home-multimedia, machine-to-machine, consumer electronics and industrial automation markets. Esmertec’s wireless Java™ (J2ME™) products and object-oriented software platform (OSVM™) deliver high-performance computing on resource-constrained devices to chipset and embedded device manufacturers. Founded in 1999, Esmertec is a global company headquartered in Duebendorf-Zurich, with engineering, sales and customer support operations in Switzerland, Denmark, the UK, the USA, China, Korea, Japan, Hong Kong and Taiwan.

About CoreTek Systems

CoreTek Systems, Inc. is a joint venture of China Galaxy Captek Co. Ltd. (a subsidiary of China Guangdong Nuclear Power (Group) Corporation) and University of Electronic Science and Technology of China. The major business focus of CoreTek is to offer the embedded software development tools including the embedded real-time operating systems, cross-compilers and debuggers, testing tools for embedded application software and integrated development environment.