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TELEFONICA CELULAR IN BRAZIL LICENSES PHONE.COM UP.LINK SERVER AND MYPHONE APPLICATIONS

Wireless Internet Service Launched In Two Regions

REDWOOD CITY, Calif. July 12, 2000 Phone.com, Inc. (Nasdaq:PHCM), a leading provider of mobile Internet software, applications and services, today announced that the Brazilian cellular units of Telefonica, a worldwide leading telecommunications services provider, have licensed the Phone.com UP. Linkä Server and MyPhone applications in order to provide leading edge WAP-based mobile Internet services. This license agreement extends the worldwide relationship between Telefonica and Phone.com. Telefonica Celular Brazil launched service July 4 on their CDMA networks in Rio de Janeiro and Espirito Santo, with service launching on their TDMA networks later this year.
Using Phone.coms UP.Link Server and MyPhone Applications, Telefonica Celular Brazil will provide its subscribers with real-time access to Internet-based content and services including email, portals, newspapers, mobile-banking, financial and travel information, horoscopes, and weather updates and alerts. Sophisticated control of network functions such as call forwarding, call waiting, and voicemail service activation will also be provided. Telefonica Celular will be offering the service on several Internet-enabled mobile phones, including select Motorola, Samsung, LG and Nokia models.
We see this mobile Internet launch as a very important innovation in Brazil, a region with one of the fastest growing Internet adoptions rates in Latin America. Because of the increasing presence of the Internet, we see this service as a natural extension and anticipate it being very successful, said Hector Roldan, Senior Vice President of business development of Telefonica Celular
Telefonica is a key player in the Latin American Telecom market. We are very happy to see Telefonicas continued adoption of Phone.com technology not only in their GSM networks but in their CDMA and TDMA markets as well, said Tony Miranzadeh, vice president and general manager of Asia Pacific and Latin America. We are proud to be an integral part of bringing the mobile Internet to Latin Americas most populous country.
About Telefonica
Telefónica S.A. is the leading telecom operator in Spanish- and Portuguese-speaking world. With 1999 sales of EUR13.6bn, Telefónica is Spains largest multinational by earnings and stock market capitalisation, and one of the worlds leading telecom companies. Through its subsidiaries in Latin America, Europe, the United States and Africa, Telefónica provides services in twenty-five countries with a potential market of over 550 million people, of which 60 million are clients. Net profit was EUR345m in the first quarter 2000, a 34.2% rise on the same period in 1999.
About Phone.com
Phone.com, Inc. (Nasdaq:PHCM) is a leading provider of software, applications, and services that enable the delivery of Internet-based information and voice 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, Copenhagen, Hong Kong, London, Madrid, Paris, Rome, Seoul and Tokyo. Visit http://www.phone.com for 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.coms limited operating history, potential fluctuations in Phone.coms operating results, uncertainties related to Phone.coms long sales cycle and reliance on a small number of customers, Phone.coms dependence on the acceptance of its products by network operators and wireless subscribers, Phone.coms 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.coms 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 are included in Phone.coms Form 10-Q for quarters ended September 30, 1999, December 31, 1999, and March 31, 1999, and in its prospectus dated November 16, 1999 and in its other filings with the Securities and Exchange Commission.

The Phone.com name and logo, MyPhone and the family of terms carrying the UP. prefix are trademarks of Phone.com, Inc. All Rights Reserved. All other company, brand and product names may be marks that are the sole property of their respective owners.

For more information please contact:
Phone.com, Inc.Whitney Gould PR21 +1 (415) 369 8108 [email protected] Phone.com (Europe) LimitedKylie Trevitt Text 100 Ltd. +44 (0) 181 242 [email protected] Phone.com Japan K.K.Masaaki YamamotoPhone.com Japan K.K.+81 3 5325 [email protected]