OmniSky to acquire NomadIQ

OmniSky to acquire NomadIQ

OmniSky Corporation a provider of wireless Internet and e-mail services to users of handheld devices, announced that it has signed a definitive agreement to acquire NomadIQ, a privately-held provider of location-based applications and services for handheld devices.

Under the terms of the agreement, OmniSky will issue 2.5 million shares of its common stock to the shareholders of NomadIQ, including a pool of options for employees, upon closing. The agreement also provides for the issuance of up to an additional 1.0 million shares of OmniSky common stock over a twelve-month period if certain performance milestones and other conditions are met, including the continued retention of the senior management team. The transaction is expected to close within the next few weeks, subject to the receipt of certain regulatory consents.

NomadIQ has pioneered a unified communications platform for the delivery of location-based services that leverages both online and cached data on handheld devices. The acquisition of NomadIQ strengthens OmniSky's position as a leading innovator of wireless services and will accelerate the Company's plans to deliver next generation services to its subscribers -- including location-sensitive mobile commerce and user-to-user communications.

"NomadIQ has developed what we believe to be the most robust and comprehensive product for location-based applications and services," said Patrick McVeigh, chairman and CEO of OmniSky. "We expect NomadIQ's platform to enhance our revenue opportunities, to further differentiate our service in the market, and importantly, to help us continue to grow a loyal and active community of subscribers."

With the acquisition of NomadIQ, OmniSky gains a highly experienced and accomplished team to work towards an aggressive roadmap of future services. NomadIQ's executive team will continue on with OmniSky. NomadIQ's founder, Jacob Ner-David, will oversee the 50-plus software engineers and product designers in Israel where NomadIQ's main development facility resides. The additional headcount and foreign facilities are already reflected in OmniSky's 2001 financial guidance provided during OmniSky's conference call for the third quarter of 2000.

"In a partner, we sought a shared vision for the role of location-based applications to fuel the market for wireless services and add value to subscribers," said Jacob Ner-David. "OmniSky provides us significant experience in developing and bringing to market best-in-class wireless services on handheld devices, brand-name recognition, and a well-thought-out strategy for leveraging our platform. We are thrilled to join the OmniSky team and to have the opportunity to contribute to the continued development of the leading wireless service."

The NomadIQ service allows subscribers to access location-based information and interact with a community of users by leveraging both online and cached data. Once integrated with the OmniSky service, subscribers will be able to:

Locate and access comprehensive and media-rich information about local restaurants, entertainment venues, and other businesses as a function of their location; view and interact with maps and receive directions to those businesses; and save this information on their handheld device;
Connect with merchants in person or online to complete a transaction, such as buying movie tickets or making restaurant reservations;
Identify the location of -- and invite other subscribers to -- an event or a place and send along pertinent data including the address and directions, which, in turn, can be saved on the handheld device; and
Engage in real-time communications and collaboration, including instant messaging, with friends and colleagues.

Over time, OmniSky expects to enhance its revenue opportunities through the integration of NomadIQ's platform into OmniSky's wireless service. By bringing together a community of individuals with conveniently-located businesses, the service becomes a driving application for mobile commerce. In addition, location-based information provides a highly targeted opportunity for advertising and other incentive services.

OmniSky's product and technology teams have begun integration efforts and anticipate rolling-out service by the end of the first half of 2001. Similar services will be offered in Europe through OmniSky's International Joint Venture with News Corp.

About OmniSky
OmniSky Corporation is mobilizing the Internet for users of handheld devices. The OmniSky wireless Internet and e-mail service offers unlimited usage and enables subscribers to access and navigate the Internet, send and receive e-mail messages and securely conduct mobile commerce transactions all for a fixed monthly fee. OmniSky partners with the leading wireless hardware, services and infrastructure providers, including AT&T Wireless, PSINet, Aether Systems, and InfoSpace, as well as the most popular online content and commerce providers, including AOL, eBay, E*TRADE, and Yahoo! Subscribers can access nearly 1,000 links to optimized Web content through an intuitive wireless portal that organizes information into categories such as finance, shopping, news, sports and more. In addition, subscribers can search and surf the Web through the OmniSky wireless portal. The OmniSky service is available for the HP Jornada 540 Series, Handspring Visor Platinum and Visor Prism and the Palm V and Palm Vx handheld devices. The Company expects to offer service on multiple devices, platforms and networks capable of offering handheld users a compelling wireless experience.

OmniSky currently offers its service within the United States in over 118 major metropolitan areas, encompassing over 160 million people. Through a joint venture with News Corporation, OmniSky expects to begin offering its wireless service internationally in the first half of 2001. OmniSky is headquartered in Palo Alto, Calif.

For more information visit www.omnisky.com.