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Australia's Largest Telecommunications Company Will Introduce WAP-based Services for its Mobile Customers

San Jose, Calif. (July 27, 1999) ¾ Phone.com, Inc. (NASDAQ: PHCM), and Telstra Corporation Limited, Australia's largest telecommunications company, today announced at the Unwired Universe Conference that Telstra Corporation has licensed the Phone.com™ Wireless Application Protocol (WAP)-compatible UP.Link™ Server. Under the terms of the agreement, Telstra will use its Phone.com software license to provide new wireless Internet service offerings to its Australian mobile customers.

Phone.com's software will enable Telstra to offer mobile customers with WAP-capable mobile phones access to a full range of Telstra information services and resources.

These new Telstra services can be accessed through mobile phones equipped with a WAP-compatible microbrowser such as the Phone.com™ UP.Browser™ microbrowser.

"Telstra chose to partner with Phone.com because their technology solutions will enable us to quickly develop and deploy new services, ensuring that we have a steady flow of new applications to meet the changing, diverse needs of our customer base," said Mr Jonathan Marchbank, managing director, Telstra Mobiles. "In the future, we expect WAP will provide not only interaction with Internet based information, such as transport timetables, flight arrival and departures, and telephone directory information services, but users will be able to check bank accounts and carry out transactions as well as gain access to on-line ticketing with airlines."

"Our agreement with Telstra shows that Phone.com continues to deliver on our strategy to provide world class telecommunications companies the fastest time to market for scalable and reliable WAP services." said Alain Rossmann, president and chief executive officer of Phone.com. "Telstra's leadership position in the GSM world, combined with Phone.com's innovative and mature products, will form a solid foundation for a wealth of advanced services for the Australian public."

About Telstra Corporation Limited
Telstra Corporation Limited is Australia's principal telecommunications company. Telstra offers a broad range of telecommunications and information services. The company's principal activities include providing telephone exchange lines to homes and businesses, supplying local and long distance telephone calls in Australia and international calls to and from Australia, supplying mobile telecommunications services and providing a comprehensive range of data, Internet and on-line services and, through its affiliates, pay television. Telstra is also the principal provider of directory services in Australia.

About Phone.com
Phone.com, Inc. is a leading provider of software that enables 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 London 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.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 prospectus dated June 10, 1999 and in its other filings with the Securities and Exchange Commission

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For further information:

Contact Phone.com Worldwide Public Relations

Telstra Corporation
Virginia Murphy
Telstra Corporation
+61 3 9252 1336
[email protected]