XTND Extended Systems (MM)

Cash Transaction Valued at Approximately $71.3 Million DUBLIN, Calif., Oct. 26 /PRNewswire-FirstCall/ -- Sybase, Inc. (NYSE:SY), a leading provider of enterprise infrastructure and mobile software, today announced the completion of its acquisition of Extended Systems Incorporated (NASDAQ:XTND), a leading provider of mobile software solutions, in a cash merger with a total diluted equity value of approximately $71.3 million, or $4.460847 per share. Founded in 1984, Extended Systems brings to Sybase its patented mobile technology, approximately 2,500 global enterprise customers and 2.5 million users. In addition, Extended Systems' mobile device solutions, including Bluetooth(R) and infrared wireless technologies, have been incorporated into over 400 distinct mobile device designs by major global device manufacturers -- representing millions of Extended Systems-enabled devices in the market. Headquartered in Boise, Idaho, Extended Systems has 180 employees in North America and Europe. "With the acquisition of Extended Systems, Sybase's iAnywhere subsidiary gains a platform for integrating its diverse product set, a deeper European presence and a clear channel to device manufacturers for embedded software sales," according to a recent Forrester report (Ellen Daley, Carl Zetie and Benjamin Gray, Forrester Research, Aug. 3, 2005). All transaction closing conditions have been satisfied. Sybase intends to integrate Extended Systems into Sybase's iAnywhere subsidiary. "This acquisition positions Sybase with a powerful, end-to-end enterprise information mobility offering that, when combined with our industry-leading mobile database and mobile device management products, enables Sybase to deliver on the benefits of the Unwired Enterprise," said Chairman, President, and CEO John Chen. "iAnywhere and Extended Systems have built solid businesses by listening to their customers and proactively addressing their evolving requirements. Combining these two companies will give us the opportunity to continue that progression by putting together the strengths of our products and the expertise of our people," said Terry Stepien, president of iAnywhere. "iAnywhere is committed to the success of our customers as we deliver the industry's leading, most comprehensive mobile and embedded software solutions available." About Sybase, Inc. Celebrating 20 years of innovation, Sybase enables the Unwired Enterprise for customers and partners by delivering enterprise and mobile solutions for information management, development and integration. The world's most critical data in commerce, communications, finance, government and healthcare runs on Sybase. For more information, visit the Sybase Web site: http://www.sybase.com/ . About Extended Systems Extended Systems delivers success at the Point of Action. More than 2,500 companies worldwide use Extended Systems' frontline management solution to keep information and applications current wherever business takes place -- in retail stores and branch offices, at customer sites, and in the field. With Extended Systems' software solutions, business can see and direct its frontline activities, IT can manage any platform in the field from a browser, and end users can enjoy unparalleled reliability of the solutions on which they depend. To deliver the total solution, Extended Systems partners with global leaders such as Microsoft, HP, and Palm. As used in this release, iAnywhere means iAnywhere Solutions, Inc., a subsidiary of Sybase, Inc. iAnywhere, iAnywhere Solutions and Sybase are registered trademarks of Sybase, Inc. or its subsidiaries. The Bluetooth word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Extended Systems is under license. Other trademarks and trade names are those of their respective owners. (R) indicates registration in the United States of America. All other company and product names mentioned may be trademarks of the companies with which they are associated FORWARD LOOKING STATEMENTS: Statements concerning the benefits of Sybase's acquisition of Extended Systems, future growth, and Sybase's plans following completion of the acquisition are by nature "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve a number of uncertainties and risks and cannot be guaranteed. Factors that could cause actual events or results to differ materially include risks regarding employee relations, risks relating to shifts in customer demand, rapid technological changes, competitive factors and unanticipated delays in scheduled product availability and other risks concerning Sybase, Extended Systems and their respective operations, some of these risks are detailed in filings with the SEC of Sybase, including its most recent filings on Form 10-K and Form 10-Q. DATASOURCE: Sybase, Inc. CONTACT: Financial Inquiries, Lynne Farris, Investor Relations, +1-925-236-8797, or , or Press Inquiries, Heather Peterson, Public Relations, +1-925-236-6517, or , both of Sybase, Inc.; or Eileen Conway of Citigate Cunningham, +1-415-618-8738, or , for Sybase, Inc. Web site: http://www.sybase.com/

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