TMN in Portugal Selects Birdstep Technology to Provide Nationwide "One-Click" Connectivity Offering

Important New Contract With the Market Leading Mobile Operator in Portugal

Birdstep Technology ASA, the provider of leading mobility and connectivity client solutions, announced that TMN, a subsidiary of the Portugal Telecom Group with near 50% market share in the Portuguese market, has chosen Birdstep Technology to provide the connectivity client solution to cover their GPRS, UMTS and WLAN networks.

The solution contracted by TMN with Birdstep Technology will offer coverage of the three network alternatives with PC cards. The deployment is planned to be nationwide.

The solution will provide one consistent, branded interface that works with PC cards available to the subscriber. It is based on the "one-click" patented software that allows users to quickly and easily configure their mobile devices to access data services provided by TMN across their available wireless technologies.

"The product's capability to provide support to our PC cards made Birdstep Technology the obvious choice in enabling us to launch this attractive new service for our subscribers," said Eduardo Cláudio from TMN.

"This contract confirms that our products can offer the functionality needed to the operator market. Our solution offers the same branded solution for all PCMCIA cards, making it a future-proof solution," said Petri Markkanen, CEO from Birdstep Technology.

About TMN

Created in March 1991, TMN is a subsidiary of the Portugal Telecom Group and the leading mobile telecommunications provider in Portugal, with more than 5 million costumers, which represents a market share near 50 percent in a three mobile operator's scenario. In 2004, TMN reported operational revenues of EUR 1.6 billion.

Investing in the ongoing diversification of solutions tailored to individual and professional needs, TMN makes technological innovation and orientation towards the client drive its overall activity, supported by constant investments to strengthen the network coverage and the quality of service.

TMN has a history of leading the mobile market in Portugal with attractive, advanced services. In April 2004, TMN made history when it became the first operator to launch video call mobile service within the Portuguese market, simultaneously becoming the 3rd operator to launch this service in Europe. To date, TMN has launched a set of innovative 3G services, such as video-calling, video-mail, video-portal, video-call-centre and video-sharing in the Portuguese market. In terms of the corporate segment, TMN provides an Outmail service to its customers, as well as the only datacard in the Portuguese market compatible with GPRS/UMTS/WiFi.

For more information, visit Portugal Telecom on the Internet: www.telecom.pt

About Birdstep Technology

Birdstep Technology ASA is a public company listed on the Oslo Stock Exchange (OSE) under ticker 'BIRD' with head quarters in Oslo, Norway, in addition to offices in Stockholm, Sweden, and Seattle, USA, as well as offices in Frankfurt, Cambridge (UK), San Francisco, Sao Paolo and Shanghai. In December 2004 Birdstep acquired 100% of the shares in Alice Systems, now Birdstep AB in Sweden. The acquisition makes Birdstep a complete provider of connectivity and mobility solutions for PC, pocket-PC and Smartphone devices that enable operators to improve their customer experience as they move between available networks, e.g. fixed, cellular and wireless connections. The company today employs around 70 people dedicated to development of advanced connectivity and seamless mobility solutions, as well as small footprint, high performance database technologies. Birdstep's global customers and partners include Nokia, SonyEricsson, Cisco, 3Com, Alcatel, Ericsson, Nortel Networks, HP, Fujitsu Siemens Computers and more than 30 mobile network operators worldwide including T-Mobile Group, Vodafone Group, Orange, TIM, Sprint , Telenor and TeliaSonera. Birdstep offers "SmartRoaming," a hosted roaming service to provide mobility across networks independent of the operator or subscription. For more information, visit www.birdstep.com.

This news release contains forward-looking statements, including statements that are subject to certain risks and uncertainties, including, but not limited to, those associated with unpredictability and volatility of the price of Birdstep Technology's Common Stock, the performance of and conditions in the Norwegian and world financial markets, the policies and actions of the Norwegian and other governments, and the general political, economic and business conditions in Norway and elsewhere. Actual results could differ materially, as a result of such factors, from those set forth in forward-looking statements.

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