ARCHIVE 2005

Esmertec acquires mobile division of CoreTek Systems, China

Duebendorf-Zurich – February 2, 2005 – Esmertec™ (www.esmertec.com), a leading provider of software solutions for mobile phones and embedded devices, and CoreTek Systems Incorporated (www.coretek.com.cn), a leading company in China offering embedded software and development tools, announce today that Esmertec has acquired the entire mobile division of CoreTek Systems in China, including intellectual property, skilled R&D and project management teams, and an experienced sales force.

“CoreTek is a leading player in providing embedded and mobile products in China. We have chosen to spin off the mobile division to Esmertec, a well established global player, to internationalize our products fast and efficiently,” said Mingyuan Zhu, President, CoreTek Systems.

Esmertec is in the process of registering and establishing a new company, Esmertec (China), where the resources, talents and assets from Esmertec and CoreTek Mobile will be combined. Esmertec (China) will be staffed with dynamic local sales and pre-sales personnel, an expert R&D team, professional customer project managers and engineers, and will continue to deliver the existing high-performance products and quality services.

Professor Lei Luo, VP & CTO of CoreTek, will be joining Esmertec (China) as its new CTO. She commented, “In addition to gaining a foothold in international markets, we see this agreement as the stepping stone for our current mobile products to gain dominance in China. My job will be to continue delivering innovative cutting-edge technology and products.”

This acquisition is Esmertec’s latest expansion activity in Asia, following the set-up of a customer support center in both Taiwan and Korea, and Esmertec taking majority stake in eValley, Esmertec’s technology partner in Japan.

“Through this acquisition and Esmertec’s expansion in Asia, we have become one of the largest players providing software solutions to reference design houses and manufacturers of embedded devices such as mobile phones, set-top boxes and home gateways in Asia,” said Alain Blancquart, CEO, Esmertec. “It is our plan to grow Esmertec’s operations in Asia by end of 2005 to around 200 people, out of which over 100 will be based in China. These operations will provide best-in-class embedded software solutions, services and support to customers in China, Asia and globally.”