Esmertec Forecasts H1

DUEBENDORF-ZURICH, Switzerland -- Esmertec™ (SWX:ESMN), a focused provider of software and services to communications device manufacturers and mobile telecom operators, is pleased to announce that it expects the first half-year 2007 revenues to be USD 17 million representing an increase of 83.7% compared to the first six months of 2006. The company also notes significant improvement in cash flow from operations.

Jean-Claude Martinez, CEO of Esmertec, said: “Our substantial operational progress has resulted in a solid revenue growth. Thanks to our international network and customized solution offering, we are well placed to anticipate customer needs very fast, and in doing so further drive growth and gain market share. Our order backlog remains strong and we have been able to renew contracts with top tier customers.”

In the Mobile and Multimedia Devices segment the company’s customer shipments in the second quarter 2007 reached 26.4 million units compared to 10.4 million in the second quarter 2006. The market share improved to an estimated 8.7% in the first half-year 2007 from 3.9% in the first half-year 2006. Total customer shipments in the first half-year 2007 reached 46.3 million units compared to 18.1 million units for the same period in 2006.

As at June 30, 2007 20 mobile operators have deployed the Mobile Operator segment’s USSD browsing solution to serve an estimated cumulative consumer base of over 100 million mobile subscribers as of today compared to 40 million per June 30, 2006.

esmertec AG