Pumatech forecasts revenue growth path for fiscal 2003-2004

SAN JOSE, Calif. - (01/07/03) - Company officials from Pumatech, Inc. (NASDAQ: PUMA) today outlined a forecast for revenue growth in fiscal 2003 and 2004, based on projected increasing enterprise sales of its Intellisync® synchronization software and services, continued success in the technology-licensing and retail channels, improving market trends, industry consolidation and better internal execution. Pumatech expects these factors to generate compound quarterly revenue increases averaging 10% to 20% through the Company's 2004 fiscal year.

"As we enter the new year, it appears that several key factors have come together to benefit Pumatech's prospects in fiscal 2003," said Woodson (Woody) Hobbs, Pumatech president and CEO. "We believe that the 14% quarter-over-quarter revenue increase that we posted in our first quarter of fiscal 2003 is the beginning of a positive trend that should lead to steady revenue growth over the next several fiscal quarters."

In projecting the Company's revenue growth through fiscal 2004, Pumatech has accounted for the inevitable seasonality that affects business software sales, both positively and negatively, throughout the year. For example, Pumatech has historically experienced relatively "soft" retail sales during its fiscal fourth quarter, which occurs during the summer months.

Hobbs cited the following company and industry elements as the foundation for Pumatech's projected revenue increase and corporate turnaround:

Improved market conditions; broader wireless adoption: Activity in the mobile device market appears to be heating up, which should further spur increased adoption by corporate enterprise customers. Price reductions in many categories; new, fully featured Pocket PC offerings from several manufacturers; a new ARM-processor-based Palm OS, and rapid innovation in multimedia and content areas all have the potential to increase sales of Pumatech software. The "smart phone" category is also making strides via new product entries from Handspring, NEC, Samsung, Nokia and Ericsson. Additionally, 2.5G and 3G wireless networks are becoming more of a reality, thus offering the promise that sales of Internet-capable mobile devices may soon rival those of PCs. Faster microprocessors, improved display quality and keypads, along with increased storage capabilities, are expected to drive a shift in utilization of these devices from static to interactive.

Refined company focus, improved internal execution: Pumatech has re-focused its resources on the Company's industry-leading, multi-patented synchronization technology, along with the complementary product categories of mobile-application development and application/device management. Pumatech believes this focus - combined with its commitment to balancing revenue growth with a healthy bottom line - should enable the Company to achieve profitability early in fiscal 2004. As enterprise customers increasingly move from the "pilot test" phase to adoption of various technologies during 2003, Pumatech's synchronization, mobile-application development and management offerings are well-positioned to meet the needs of these prospects.

Sales momentum: Pumatech's best-selling Intellisync software continues to dominate the retail channel, with current market share of more than 85% in the U.S., according to NPD Intellect. The Company intends to solidify Intellisync's retail dominance through promotional support from Microsoft and others. In the technology-licensing arena, Pumatech has announced partnerships with Microsoft, Oracle, Sharp, SAP, NEC and Hitachi in the last couple of months. In addition, Pumatech's enterprise sales accounted for 60% of the Company's overall revenue in the first fiscal quarter of 2003. Similarly, revenue growth in Japan, widely recognized as the leader in wireless and mobile device technology, has strengthened Pumatech's presence in that country. Pumatech believes that the European market may also yield new sales opportunities in 2003.

Integration and mobilization of enterprise groupware, CRM/SFA/FFA software, and vertical applications: Enterprise application integration (EAI) is high on the wish lists of today's CIOs and IT directors. Pumatech's powerful synchronization and mobile-application development technologies meet this need by integrating mission-critical enterprise applications with other software solutions and mobile devices - extending essential business information to employees, precisely when and where they need it. Pumatech partners such as Oracle, Siebel and Salesforce.com, for example, have embedded Pumatech's sync engine into their CRM, salesforce automation and field-force automation software to facilitate integration with handheld devices and enterprise groupware such as Microsoft Exchange/Outlook and Lotus Notes.

The right products at the right time: In tandem with its partners, Pumatech is also poised to assist businesses of all sizes in maximizing exciting new mobile technologies. During fiscal Q1 2003, sales of Enterprise Intellisync Server and Satellite Forms® MobileApp Designer software began to make a measurable contribution to Pumatech's growth in enterprise sales. Satellite Forms enables rapid development of custom applications that run on Palm OS® or Pocket PC handhelds and integrate with back-end corporate data. Enterprise Intellisync Server provides local and remote synchronization of both PIM (personal information management) and custom data among servers, PCs and mobile devices. Enterprise Intellisync also offers the ability to configure and deploy diverse mobile applications, and to manage handheld devices - all from a centralized console. This important capability maximizes ROI and lowers total cost of ownership for handheld devices.

"In addition to these factors, Pumatech possesses a strong suite of corporate assets that will help fuel the Company's growth in the months ahead," Hobbs explained. "We have a diverse customer base, including companies that make up 50% of the Fortune 1000, as well as more than 200 technology-licensing partners like Microsoft, Oracle and Siebel. We own 18 technology patents, including 12 in the area of synchronization. We have a solid financial base, with more than $30 million in cash and short-term investments. Most importantly, we're blessed with a dynamic management team and employees who are committed to taking Pumatech to the next level."

ABOUT PUMATECH

Pumatech, Inc. (NASDAQ: PUMA) provides organizations with a comprehensive suite of software products and services that synchronizes and distributes critical information for an individual or throughout an enterprise. Organizations can choose to use Pumatech's ready-made enterprise offerings, or they can leverage Pumatech's professional services team to create custom solutions built upon Pumatech's core enterprise platform. Pumatech's customer and strategic partner base includes Global 2000 companies such as Microsoft, Sony, Siebel, Oracle, Yahoo!, NTT DoCoMo, Boeing and General Motors. The Company has headquarters in Silicon Valley and offices in Munich, Tokyo and London. Pumatech offers more information on its products and services at www.pumatech.com.

Forward-looking statements in this news release, including but not limited to statements concerning projected revenue growth, improving market trends, industry consolidation, broader wireless adoption, improved internal execution, enterprise application integration and adoption of Pumatech products and technologies are made pursuant to the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to technological changes, market uncertainties, adoption of Pumatech's technologies and products, dependence on intellectual property rights and other risks detailed from time to time in Pumatech's periodic reports filed with the United States Securities and Exchange Commission and other regulatory authorities.

Pumatech, the Pumatech logo, Intellisync, Satellite Forms and Enterprise Intellisync are trademarks of Pumatech, Inc., that may be registered in some jurisdictions. Palm OS is a registered trademark of Palm, Inc. The names of companies and products mentioned herein may be the trademarks of their respective owners.