News
Issue #2002 - 35 (September 2002)
(Updated Sep. 18, 2002)

MERGERS, ACQUISITIONS and AGREEMENTS

Motorola Acquires J2ME Technology Leader, 4thpass 

ILibertyville, Illinois – September 16, 2002 – In a strategic move to support its customers’ desire to generate additional revenue and reduce costs for managing wireless Java™ 2 Platform, Micro Edition (J2ME™) services, Motorola today announced that it has signed an agreement to acquire 4thpass, a Seattle-based company. Motorola will integrate 4thpass’ Mobile Application System (MAS) into its robust J2ME technology product portfolio. 

MAS is commercially deployed today around the globe, with such operators as Telefonica Moviles (Spain), Nextel and LG Telecom (Korea). 4thpass MAS is also resold through value added resellers, which include Ericsson and Siemens. The solution is comprised of a Java download server – a smart provisioning system to ensure the right applications are delivered to the right devices. MAS also gives operators multiple ways to bill for content and advanced technology to validate applications and control how they behave on devices and on the operator’s network. MAS manages and securely delivers J2ME applications and other mobile content over-the-air from operator networks to mobile handsets, allowing the mobile user to continually upgrade and personalize the applications, like wireless games, on their mobile device. 

The sale, which is subject to closing conditions, is expected to be completed in September, 2002. The acquisition follows a Motorola investment in 4thpass last year, made by Motorola Ventures, the strategic venture capital arm of the global communications company. Other 4thpass investors include Investcorp, OVP Venture Partners and Nextel.

“By integrating 4thpass’s proven download, billing and provisioning technology into its portfolio, Motorola will extend its strategy to assist operators in deploying applications that measurably grow average revenue per user (ARPU).” said Scott Durchslag, Motorola’s corporate vice-president for strategy and business development. “This deal illustrates how we are executing a three horizon growth strategy that invests internally and externally in capabilities that (1) strengthen our core handset business; (2) extend our core business into software and solutions; and (3) create growth options in emerging but strategically related spaces.”

“4thpass is well recognized in the industry as a top provider of J2ME software with whom we have successfully collaborated to meet the needs of operators in Asia, Europe, Latin America, and the United States.” added Mike Bordelon, corporate vice president and general manager within Motorola’s Personal Communications Sector. “We look forward to integrating the 4thpass solution into our portfolio to strengthen our offerings to operators and our java partners.” 

Motorola is leading the industry in bringing J2ME technology to wireless communications. In addition to contributing to key, open J2ME standards and launching the first wireless phone incorporating the technology, Motorola continues to offer its customers a portfolio of solutions including more than a dozen wireless phones with J2ME technology, branded applications and content and a full service developer program to assist software developers in creating and certifying new wireless applications.


“It’s now clear Java is the leading force in the wireless marketplace and is key for operators rolling out data services. With Motorola, we enter a new stage as a company and as developers of leading wireless data solutions,” said 4thpass co-founders, Mazin Ramadan and Zeyad Ramadan. “Together, Motorola and 4thpass have a proven, complete and economical solution for operators worldwide.” 

4thpass will operate as part of Motorola’s Personal Communications Sector with major offices in Seattle.

About J2ME Technology 

J2ME technology was developed for low powered devices and provides consumers with the ability to add new applications, created by software developers, to their devices as their individual needs change and grow. Since J2ME(TM) is an industry standard, the same software and applications can work on a variety of different devices. 

About 4thpass
4thpass (www.4thpass.com) 4thpass is a Seattle-based company that builds and markets smart provisioning software for wireless operators to manage and deliver applications and other mobile content over the air to mobile devices. Its core product, MAS™, gives operators the ability to deliver mobile content to a variety of mobile devices. 

For more information: www.motorola.com

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.