MyPhone is a mobile portal platform and a complete suite of value added communication applications and personal information management applications that enable the development of next generation universal access Internet portals. As such, MyPhone enables the integration of many types of applications into a single, fully personalized service. The license agreement will provide BT with a rapid route to market with a leading edge and constantly evolving set of integrated wireless Internet services. The agreement further supports Phone.coms goal to continue to define and lead the market for WAP-based mobile Internet, communication, and commerce applications and services, tailored to specific operator and mobile end-user requirements.

"The diversity of applications that we will be able to offer by fusing together mobile telephony and Internet technologies is vast," said Kent Thexton, managing director of Global Mobile Internet Unit, BT. "BT needed to partner with a proven technology innovator whom we could rely upon to deliver the kind of advanced applications we want to offer to our subscribers. By partnering with Phone.com, BT will ensure an ongoing lead in this market."

"Phone.com is delighted to be working with market leaders such as BT," said Alain Rossmann, chairman and chief executive officer of Phone.com. "The partnership with BT gives us access to some of the most innovative global GSM networks in the world. By combining our technology vision with BTs market expertise we expect to rapidly deploy new types of services and secure an enduring advantage for both companies in this highly dynamic market."

The underlying UP.Link Server software is a proven WAP 1.1 implementation with many advanced features. In use with over 50 wireless operators worldwide, the UP.Link gives BT a secure basis on which to build the personalized mobile portals it is to offer around the globe.

About BT
British Telecommunications plc is one of the worlds leading providers of telecommunications services. Its principal activities include local, long distance and international telecommunications services, mobile communications, Internet services and IT solutions. BT is expanding its presence overseas rapidly and has operations in more than 30 countries worldwide, with ventures in the Republic of Ireland, France, Switzerland, Spain, Germany, Italy, the Netherlands, Sweden, New Zealand, Japan, Singapore, Malaysia, Korea, Latin America and India. BT and AT&T have also created Concert, the leading global telecommunications company serving multi-national business customers, international carriers and Internet service providers worldwide.

About Phone.com
Phone.com, Inc. (Nasdaq:PHCM) is a leading provider of software and services that enable the delivery of Internet-based information 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, 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 quarter ended December 31, 1999, in its prospectus dated November 16, 1999 and in its other filings with the Securities and Exchange Commission.

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Phone.com, 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.

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