Purple Labs to Acquire Sagem’s Mobile Application Software Portfolio and Associated Software Engineering Team

Deal Follows Last Month’s $32 Million Acquisition of Openwave Browser Business

Chambéry, France – July 31, 2008 – Purple Labs, the leading software provider for mass-market mobile phones, announced today that it has signed a memorandum of understanding to acquire the mobile applications suite and software engineering team of Sagem Mobiles, a French manufacturer that develops mobile phones branded by Sony Ericsson, Orange, Vodafone and other customers. The asset sale to Purple Labs is linked to an announcement by SAFRAN, a French technology group, that it is selling its Sagem Mobiles business unit to Sofinnova Partners, one of Europe’s leading venture capital firms and an investor in Purple Labs. SAFRAN will join Sofinnova as a shareholder in the new entity, which will be called Sagem Wireless.

Purple Labs and Sagem Wireless also agreed to enter into a multi-year license and development agreement, whereby Purple Labs will provide Sagem Wireless with all of the application software for its products, and all of the software for its future 3G Linux devices based on LiMo Foundation requirements.

Both deals are expected to close by the end of this year, subject to the approval of employee representative bodies.

“Sagem has long been at the forefront of mobile phone innovation in Europe,” said Simon Wilkinson, Purple Labs CEO. “Following our recent acquisition of the Openwave browser business, the addition of this Sagem portfolio and engineering team will clearly position Purple Labs to lead the industry in creating rich user experience on mass-market devices.”

On June 30th, Purple Labs announced that it had completed a $32 million deal to acquire the Openwave mobile phone software business, which develops and markets the industry-leading browser and messaging technologies. Purple Labs now supplies mobile browser software to all of the top 5 phone manufacturers, which together produce over 80% of the world’s mobile phones.

Based in Chambéry, France, Purple Labs is funded by three European venture capital firms: Sofinnova Partners, Earlybird Venture Capital, and Partners Group.

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Openwave Sells Mobile-Phone Unit To Purple Labs For $32 Million In Cash

Openwave Systems said today it was selling its mobile browser and messaging business to Purple Labs, a supplier of Linux for mass-market 3G phones, for $32 million in cash and the right to purchase up to 2 percent of Purple Labs’ stock. The purpose of the sale is to allow Openwave (NSDQ: OPWV), which has been restructuring its business, to focus on innovation and growing profitably, said Bruce Coleman, interim Openwave CEO. It will continue in the mobile business, working on its core markets of personalization, mobile advertising and the Mobile Internet. Purple Labs is based in Chambéry, France, and is backed by three European venture capital firms: Sofinnova Partners, Earlybird Venture Capital, and Partners Group. Under the terms of the agreement, Openwave will transfer its assets to Purple Labs in exchange for $30 million in cash and up to $2 million if certain conditions are met. In addition, Openwave will be allotted warrants to purchase 2 percent of Purple Labs common stock. Openwave transition the assets over to Purple Labs and bear the first $2 million in expenses. Release.<

By Tricia Duryee