MDM Acquires Leading Provider of Mobile Office Applications; MDM Acquires Handheld Software Business from Mobility Electronics

MOUNTAIN VIEW, Calif.--()--Sept. 21, 2004--Mobile Digital Media (MDM), a world leader in providing high quality consumer software for mobile devices, today announced that it has acquired the handheld software business and related technology assets from Mobility Electronics, Inc. (Nasdaq:MOBE). The business, formerly operated by Mobility as Cutting Edge Software, is a leading provider of mobile Microsoft Office(TM) compatible applications for smartphones and PDAs.

With the acquisition of Mobility's handheld software business, MDM has also acquired the award winning Quickoffice(R) suite of software applications, including: Quickoffice Premier, Quickoffice, Quicksheet(R), Quickword(R), Quickpoint(TM), Quickchart(TM) and Mobilefile(TM). These leading applications provide mobile professionals the ability to open and edit native Microsoft Word, Excel, and PowerPoint files and email attachments, as well as access their home or office PC, all on their smartphones and PDAs. Recent Quickoffice product awards include:

"Best Office Suite" --Handheld magazine

"Best Product" --Handheld Computing

"Palm Power Up Award, Best Enterprise Application" --PalmSource

"Handango Champion Award, Best Business Application" --Handango

Translated into over 40 languages, Quickoffice products are the only office suite products available for Symbian Series 60 and Symbian UIQ mobile device platforms. The company has established key OEM partnerships with smartphone manufacturers including Nokia, Panasonic and Sony Ericsson meaning Quickoffice will be bundled in millions of smartphones in 2005. Further, with the acquisition MDM becomes a Symbian Platinum Partner.

"We're very excited to add both the former Cutting Edge Software group and their Quickoffice line of applications to MDM's growing team and catalog of popular entertainment and productivity software titles for mobile professionals," said Alan Masarek, President and CFO of MDM. "With this acquisition, MDM further extends its mobile software industry leadership, particularly in the rapidly expanding mobile phone market, delivering critical applications for PDAs and smartphones."

"This agreement is a key step in positioning Mobility to more effectively focus on our most attractive market opportunities in the power product space and in the growing connectivity solution market for converged consumer electronic devices", said Charlie Mollo, Chief Executive Officer of Mobility Electronics. "In addition, we believe the Quickoffice suite of software is an excellent fit with MDM's current product offering and sales and further development of the Quickoffice products will benefit greatly from MDM's focus in the software industry and its already extensive distribution network."

Quickoffice products are available now at www.quickoffice.com and leading online websites.

For more information go to www.goMDM.com.

About Mobility Electronics, Inc.

Mobility Electronics, Inc., based in Scottsdale, Arizona, is a rapidly growing developer and marketer of a broad range of innovative solutions for the mobile electronic device market (e.g., mobile phones, portable computers, smartphones, PDAs and digital cameras). The company's innovative solutions include power adapters and hardware products for handheld devices; expansion and docking products for servers, desktop and portable computers; and other accessories for the mobile electronic device market.

About MDM

Mobile Digital Media (MDM) is a world leader in providing high quality consumer software for all mobile device platforms including Palm OS, Windows Mobile / Pocket PC / Smartphone, and Nokia Series 60/SymbianOS. MDM's high quality, branded entertainment, productivity and utility products are available at major retail outlets including Circuit City, CompUSA, Franklin Covey, Fry's Electronics, MusicLand, Office Max, Radio Shack, and Staples, and leading online retailers including, Amazon, Dell, Handango, and PalmOne. MDM is a member of Microsoft Mobility Partner Advisory Council (MPAC) and Forum Nokia PRO. Privately held, MDM (www.goMDM.com) is based in Mountain View, California.

For Active Minds is a trademark of MDM. Other brands may be trademarks of their respective owners.

Contacts

Double Forte (for MDM)
Peter Evers, 510-601-8700
pevers@double-forte.com
or
FRB (for Mobility Electronics, Inc.)
Tony Rossi, 310-407-6563
trossi@financialrelationsboard.com

Contacts

Double Forte (for MDM)
Peter Evers, 510-601-8700
pevers@double-forte.com
or
FRB (for Mobility Electronics, Inc.)
Tony Rossi, 310-407-6563
trossi@financialrelationsboard.com