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Telefónica Móviles Launches First Mobile Internet Services in Spain

REDWOOD CITY, Calif. (November 15, 1999) ¾ Phone.com, Inc. (Nasdaq: PHCM) and Telefónica Móviles today announced that Telefónica Móviles has commercially launched Wireless Aplication Protocol (WAP) applications. This will enable Telefónica Móviles to provide new wireless Internet services to its 8 million mobile customers throughout Spain, with immediate rollout.

The new Telefónica Móviles services will be accessed through mobile phones equipped with a WAP-compatible microbrowser such as the Phone.com UP.Browser™ microbrowser. Phone.com's UP.Link™ Server Suite software will enable the Spanish mobile operator to offer mobile customers access to a wide range of Telefónica Móviles Internet based information services such as traffic information, news, bank access, yellow pages and email.

"Phone.com's expertise in WAP is allowing us to deliver a unique, quick-to-market offering which will add value and benefit to our customers across Spain," said Miguel Menchén, director of Services Development at Telefónica Móviles. "Phone.com software delivers a WAP-compatible platform which provides flexibility and interoperability with WAP browser-enabled handsets. As we deploy WAP- microbrowser-enabled handsets, we expect to see a tremendous growth in services and use of the network."

"Phone.com is a leader in the GSM market for WAP products, with a rapidly expanding footprint. We are determined to help GSM operators around the world deliver the best new services with the most benefit to their subscribers," said Malcolm Bird, Managing Director, Phone.com Europe.

The Wireless Application Protocol (WAP) is an open, global specification that empowers mobile users with wireless devices to easily access and interact with information and services. The WAP Forum is the industry association, comprised of over 200 member companies, which has developed the de-facto world standard for wireless information and telephony services on digital mobile phones. Telefónica Móviles and Phone.com are members of the WAP Forum.

The UP.Link Server Suite offers GSM network operators such as Telefónica Móviles, a complete WAP-based solution to enable their subscribers to gain access to Internet-based content and applications. The Phone.com UP.Link Server Suite is in its fourth generation, providing a scalable and robust implementation of the WAP protocol. Since 1997, Phone.com's solutions have been licensed to over 44 network operators worldwide.

About Telefónica Móviles
Telefónica Móviles, with 8 million customers, is Spain's leading mobile phone operator and the sixth largest in Europe. More than 7,2 million currently use Telefónica MoviStar, the dual GSM service, whilst some 750,000 are Telefónica MoviLine users. Telefónica Móviles has its own Internet portal "Oleada" http://www.oleada.com and has also recently introduced a wide range of WAP based services to the Spanish market.

About Phone.com
Phone.com, Inc. (Nasdaq: PHCM) is a leading provider of software and services that enable the delivery of Internet-based services to mass-market wireless telephones. Using its software, wireless subscribers have access to Internet- and corporate intranet-based services, including Email, news, stocks, weather, travel and sports. In addition, subscribers have access via their wireless telephones to network operators' intranet-based telephony services, which may include over-the-air activation, call management, billing history information, pricing plan subscription and voice message management. Phone.com is headquartered in Silicon Valley, California and has regional offices in Belfast, London and Tokyo. Visit http://www.phone.comfor more information.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Phone.com's limited operating history, potential fluctuations in Phone.com's operating results, uncertainties related to the Phone.com's long sales cycle and reliance on a small number of customers, Phone.com's dependence on the acceptance of its products by network operators and wireless subscribers, Phone.com's ability to adequately address the rapidly-evolving market for delivery of Internet-based services through wireless telephones, the need to achieve widespread integration of Phone.com's browser in wireless telephones, competition from companies with substantially greater financial, technical, marketing and distribution resources and the ability of Phone.com to manage a complex set of engineering, marketing and distribution relationships. Further information regarding these and other risks is included in Phone.com's Form 10-K dated September 24, 1999 and in its other filings with the Securities and Exchange Commission.