XE Mobile Brings First Sony Ericsson Walkman® Phone to the Pay-As-You-Go Market

Rings in New Year with Exciting Handsets, Expanded Distribution and Growing Subscriber Base

LAS VEGAS--(BUSINESS WIRE)--XE Mobile, the nation’s sexy, new pay-as-you-go wireless service designed to meet the needs and lifestyles of the youth and college age market, is showcasing the first Sony Ericsson Walkman® phone for the pay-as-you-go market to wireless technology buyers descending to Las Vegas this week for the start of the 2007 Consumer Electronics Show. This announcement comes on the heels of launching new handsets from the industry’s leading manufacturers, including Nokia and Motorola, and expanding distribution into music retailers, supercenter stores and the office product marketplace.

“Offering this type of phone to the pay-as-you-go user clearly shows that companies are recognizing that wireless consumers, regardless of how they pay for their service, are looking for more than a simple ‘send and end’ handset.”

“XE Mobile is prepared to be at the forefront of the industry as we head into 2007 with the introduction of the first ever Walkman® phone for the pay-as-you-go segment,” said Mark Ghermezian, president and CEO of XE Mobile. “Digital music is everywhere, and we believe that the XE member wants the ability to listen to music on their phone without the additional costs of downloading music from their service provider. The Walkman® product line resonates well with our target market and this partnership with Sony Ericsson is another step forward for us as we continue to build our XE brand.”

“Americans of all income levels are infatuated with music and telecommunications on the go. Increasingly they are looking for one device that does it both,” said Roger Entner, vice president of wireless telecom at Ovum, a leading analyst and consulting company. “Offering this type of phone to the pay-as-you-go user clearly shows that companies are recognizing that wireless consumers, regardless of how they pay for their service, are looking for more than a simple ‘send and end’ handset.”

According to Ghermezian, the company’s solid financial backing and partnerships with top telecom leaders are paving the way for success in 2007. “We understand our market and have the relationships in place to bring the best the industry has to offer to our members. We are continuously exploring new avenues and will remain committed to establishing partnerships that allow us to expand our portfolio and distribution channels so that we remain the nation’s leading MVNO for the youth and collegiate market.”

“XE Mobile was quick to pick up on the popularity of music on the go and we’re honored that they turned to Sony Ericsson to bring the W300 to their members. It’s an ideal target market for us too,” said Paul Hamnett, vice president, sales, Sony Ericsson Mobile Communications Inc. (USA).

The W300 Walkman® phone offered by XE Mobile will be priced at only $99.99 offering the same great Walkman® music quality experience as high-end models, in a compact and eye catching, clamshell design. The handset, which supports both MP3 and AAC music files, provides a great sound experience with up to 30 hours of music listening. The experience for XE members is enhanced by direct music keys, shuffle function, as well as a built-in FM radio with RDS and flight mode. Sony Ericsson’s Disc2 phone software supplied with the handset allows XE members to easily transfer their favorite CDs to their mobile phone and enjoy them anywhere, anytime without missing a call.

The W300 Walkman® phone offered by XE Mobile is loaded with features including a removable 256MB Memory Stick Micro™ (M2™) expandable to 1GB, as well as a stereo headset, USB cable and music management software. Media player information and caller ID details can be accessed from the front of the clamshell, without opening the phone. In addition to the great music features, the handset has an integrated camera with 4x digital zoom for XE members to take and view photos or record videos and Bluetooth® technology, ideal for sharing data with other Bluetooth-enabled devices.

XE Mobile prides itself in offering a fun and affordable wireless solution that includes nationwide coverage with straight-up rates and access to the nation’s largest youth discount program.

XE Mobile rates start as low as 10 cents per minute, with up to 250 free incoming minutes each month, unlimited free incoming text messages and international long distance rates from only five cents per minute. Members are never locked into any contract or plan and can easily adjust as their wireless service needs change throughout the year. Included free with the purchase of every phone with XE Service is the XE Club Card, the nation’s most widely accepted discount program for youth. The XE Club Card, with a $40 value, provides members with exclusive discounts of up to 50% off at more than 21,000 retailer locations around campuses and national businesses, as well as online merchant providers. Participating partners include Target.com, Microsoft, FYE Music Stores, DELL, ArmaniExchange.com, Urban Outfitters, Barnes n’ Noble, Greyhound, Foot Locker and more.

About XE Mobile

XE Mobile is an emerging leader in the telecom industry offering nationwide pay-as-you-go wireless for the youth and collegiate market. With flexible service pricing options and access to a broad range of wireless content applications, XE Mobile is available through a variety of distribution channels nationwide. XE Mobile is an affiliate of and is financially backed by Triple Five Group of Companies (www.triplefive.com). Triple Five’s portfolio includes Mall of America, the largest mall in the United States and West Edmonton Mall, the largest mall in the world. For more information or to get your XE phone, please visit www.xemobile.com or call 1.877.99.GET.XE.

Compatible service and service agreement required for operation. The Sony Ericsson marble logo is a trademark or registered trademark of Sony Ericsson Mobile Communications AB. Sony is a trademark or registered trademark of Sony Corporation. Ericsson is a trademark or registered trademark of Telefonaktiebolaget LM Ericsson. The WALKMAN® logo and symbol are registered trademarks of Sony Corporation. The Bluetooth word mark is a trademark of Bluetooth SIG, Inc. and any use of such mark by Sony Ericsson is under license. All other marks are the property of their respective owners.