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Aplix Corporation and iaSolution Announce Integration

Synergistic Integration to Provide Worldwide Leadership in Java(TM) Market for Consumer Electronics Devices, Including Mobile Phones

Aplix Corporation and iaSolution Inc. announced today the anticipated integration of the world's two leading Java™ technology platform providers. In terms of licensee base, iaSolution is the number one Java embedded solution provider in China and Taiwan, the fastest growing mobile market in the world. Aplix Corporation leads global Java volume shipments worldwide as an independent software company and is the undisputed global market leader. Upon closing of the transactions in question, approved by both companies' board of directors, iaSolution will become a wholly owned subsidiary of Aplix Corporation.

"The integration is an excellent fit for both companies, allowing us to combine our R&D efforts and generate innovation at an accelerated pace. This collaboration additionally provides increased international coverage from Japan, Europe, and the US to China, Taiwan and Korea, allowing both companies to better serve our customers," said Ryu Koriyama, chairman and chief executive officer of Aplix Corporation. "Aplix has established partnerships with first-tier handset manufacturers and operators in Japan, Europe, and the US. Combining this with iaSolution's deeply rooted position in Greater China with leading ODM manufacturers and Chinese operators should have great benefits for everyone."

"The key benefits from this integration are complementary product technologies, increased regional coverage, and a more diverse customer portfolio," said Wesley Kuo, President of iaSolution. "From the technology perspective, we are excited both by the improved efficiencies as we eliminate redundant development and associated costs, along with the anticipated innovation and new product development by the combined team. On the business side, both companies will benefit from these strong relationships along the industry's value chain." It is anticipated that Wesley will be appointed to president and chief strategy officer within Aplix.

Aplix has long been a major force in the Java technology space in Japan with NTT DoCoMo and major handset companies and has leveraged that experience with its successful partnership with Motorola, with over 7 different Motorola phone models shipping worldwide. In Europe, Aplix has enjoyed success on the Vodafone network with a variety of phones shipping from both Motorola and Sharp. In March, Aplix's JBlend(TM) technology surpassed 45 million shipments in mobile phones and other consumer electronics devices.

iaSolution has also enjoyed great success in Asia with 12 licensed customers, all leading Asian-based handset manufacturers, including TCL, Lenovo, and Amoi in China; BenQ, ASUS and HTC in Taiwan; and Maxon in Korea. iaSolution has empowered these customers' first GPRS Java-enabled phones with its iaJET(TM) technology.

With the addition of iaSolution's 12 contract licensees, the total for the combination becomes dozens of currently licensed customers worldwide. Complementing the offices of Aplix in Japan, Germany, and the United States, iaSolution has offices in China, Taiwan, and Singapore. Aplix immediately secures an established presence in China with iaSolution's engineering, sales and support center in Shanghai. The worldwide presence of the combined companies will allow for optimal support for all customers.

About Aplix Corporation

Aplix Corporation is the global leader in deploying Java technology in mobile phones. The company's JBlend technology has been publicly licensed by 13 handset manufacturers and deployed in mobile phones offered by wireless operators around the world. Aplix was first established in 1986 and has been a Sun Java licensee since 1996. The company is headquartered in Tokyo with subsidiary operations in San Francisco and Munich. In December of 2003, the company was publicly listed on the Tokyo Stock Exchange (Mothers).

For more information: www.aplix.co.jp

About iaSolution

Established in 2000, iaSolution has committed itself to becoming the partner of choice for embedded software solutions. Realizing this goal in Asia, iaSolution has the number one licensee base for Java embedded solutions in China and Taiwan. iaSolution has successfully cooperated with major handset manufacturers and mobile operators throughout Asia. iaSolution is headquartered in Taipei and has offices in China, Taiwan and Singapore.

For more information: www.iasolution.net

JBlend, KFTT and all related trademarks thereto are trademarks or registered trademarks of Aplix Corporation in Japan and other countries. iaJET and all related trademarks thereto are trademarks or registered trademarks of iaSolution Inc. in Taiwan and other countries. Sun, Java, JVM, and J2ME are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. All other product or service names are the property of their respective owners.