The News

Esmertec Reports Record Shipments in Q3 2007

15/11/2007

Shipment by customers reached 27 million
Over 103 million mobile subscribers have access to Esmertec’s USSD browsing solution as at September 30, 2007

DUEBENDORF-ZURICH, Switzerland – November 15, 2007 – Esmertec™ (SWX: ESMN), leading edge provider of software platforms, applications and services to communications device manufacturers and mobile telecom operators, is pleased to announce that it has reached a record shipment in Q3 2007. In the third quarter Esmertec also announced the participation in the Open Handset Alliance. Business develops in line with the company’s expectations and Esmertec reaffirms its outlook of expected revenues 2007 of over USD 35.5 million, a positive cash flow from operations for the full year and that the services business in both segments positively contribute to the gross margin.
In the Mobile & Multimedia Devices Segment shipments by customers in the third quarter 2007 reached a record-level of 27.1 million units compared to 18.6 million in the third quarter 2006. The increased performance reflects increased penetration in existing customer accounts and strong ongoing shipments by customers.. As of September 30, 2007, Esmertec's software has been shipped in over 173 million mobile handsets and consumer electronic devices. In the fourth quarter Esmertec expects shipments to show further seasonal increase due to Christmas sales.
Installed capacities in the Mobile Operator Segment also expanded. The cumulated mobile subscriber base with access to Esmertec’s Cellicium USSD browsing solution grew from 70.7 million as of September 30, 2006 to 103.4 million subscribers as of September 30, 2007.
Jean-Claude Martinez, CEO of Esmertec, said: “We are pleased that our market position continuously strengthens. This is mainly the results of our customers relying more strongly on our products and services. This market success and our innovation capability will support us in achieving our growth target.”
This communication contains forward-looking statements based on current expectations and assumptions of the company’s management only, and involves certain risks and uncertainties. The forward-looking statements contained herein could be substantially impacted by risks and influences that are not foreseeable at present, so that actual results may vary materially from those anticipated, expected, or projected. Esmertec disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Esmertec
Esmertec is a focused provider of software and services to communications device manufacturers and mobile telecom operators. The company provides software platforms that enable the deployment of content and applications in devices and over servers. Customers include mobile telecom operators and manufacturers of mobile handsets, set-top boxes and interactive televisions. Esmertec is a member of the Open Handset Alliance. Founded in 1999, Esmertec is headquartered in Zurich-Switzerland with subsidiaries in China, France, South Korea, and the USA, and offices in Taiwan and the UK. Since 2005, Esmertec has been listed on the SWX Swiss Exchange (ESMN).

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Investor relations contact
Konrad Hurni, CFO
Phone +41 44 823 8900
khurni@esmertec.com
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