Munich, Germany - 24th July 2006

Softfront (HQ:Sapporo, Japan / President and CEO: Katsuhiko Sakaguchi) and fg microtec GmbH (HQ:Munich, Germany / CEO:Robert Mirbaha, hereinafter "fg microtec")have reached an agreement to combine their IMS (IP Multimedia Subsystem) and OMA (Open Mobile Alliance) technologies. In addition, both companies have agreed to enter into a Sales and Marketing agreement, expanding each others markets in Japan and Europe.

fg microtec provides IMS and OMA based client software and technologies to leading handset manufacturers worldwide. fg microtec products are also used as reference implementations for global standards organizations such as OMA.

Softfront focusing its business on SIP as core technologies provides IMS related SIP/VoIP middleware for next generation cellular phones and network appliances. Its technologies are fully compliant with network operators and manufacturers requirements while maintaining a high level of standards fidelity.

Under these agreements, Softfront will have exclusive rights to sell and integrate fg microtec products and to provide customer support services in Japan. fg microtec will also have exclusive rights to integrate Softfront products and to provide customer support services in Europe. Softfront will integrate and market fg microtec products for the Japanese market. Similarly, fg microtec will integrate Softfront IMS and SIP technologies in its new line of OMA products.

The cooperation will provide Japanese and European mobile operators and device manufacturers with a mature and superior family of SIP and IMS products based on OMA. Competent local support and extensive customization services will be provided both in Japan and Europe. The joint offering will span Japanese and European market requirements in one cohesive portfolio for the first time in this industry.

In order to drive this cooperation successfully, Softfront and fg microtec have also agreed on a capital alliance. Softfront will hold an equity stake of 5.94% in fg microtec.

[Company Overview of fg microtec]

• Company Name: fg microtec GmbH
• Description of Business: Provision of wireless Voice and Video solutions for mobile embedded systems
• Headquarters: Kronstadter Strasse 9, 81677 Munich, Germany
• Established: 2001
• CEO: Robert Mirbaha

About fg microtec

Founded in 2001, fg microtec is a venture backed provider of wireless Voice and Video solutions for mobile embedded systems. fg microtec products combine multimedia communications on 2.5G, 3G and WLAN mobile handsets with unprecedented quality and speed. Products include IMS compliant Push-over-Cellular client for mobile handsets, IMS and SIP based VoIP client for mobile handsets for converged GSM and VoIP applications, Video telephony and Video Sharing over 3G and WLAN networks. Clients are mobile phone manufacturers.
URL: http://www.fgmicrotec.com

About Softfront

Softfront is a software development company, established in 1997. With SIP and VoIP as its core technologies, it has become the focus of industry attention as a company supplying core technologies in this field. Softfront has developed its business with the corporate mission of "By loving technology and supplying technology, we aim to become the engine driving social transformation and to realize an abundant society". Concentrating its energies from an early stage on SIP, a protocol the industry standard, Softfront has accumulated various technologies and much expertise. Currently, it supplies the SIP- and VoIP-related technologies and expertise it has accumulated to a large number of manufacturers and system integrators, and places great emphasis on its "SIP Partner Program", through which it plans the spread of its technologies via these partner companies. In addition, Softfront is now expanding softfront SIP development environment in cooperation with various CPU/OS venders worldwide.
URL: http://www.softfront.co.jp