The David and Goliath battle is over, and there are some happy faces up at Birmingham just now. Sendo and Microsoft have agreed to settle the issues in the litigation battle launched by Sendo over the various issues surrounding the Microsoft Smartphone. "We felt we were wronged," said Marijke van Hooren of Sendo, "and felt we had to take on Microsoft to recover our losses, our reputation, and image. Sendo are very happy with the settlement." The terms of the settlement are confidential, but Microsoft will surrender it's shareholding in Sendo. Hopefully now Sendo can focus 100% on the Sendo X and getting it out to everyone who wants one around the world.

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MICROSOFT AND SENDO SETTLE LITIGATION

SEATTLE, Washington, and BIRMINGHAM, UK - September 13, 2004 - Microsoft and Sendo today jointly announced that a settlement has been reached in the litigation between the two companies, both in respect of the Claim and the Counterclaim. Although the monetary component and terms of the settlement are confidential, Microsoft will surrender its shareholding in Sendo. In reaching this settlement, all parties deny any and all liability. The terms of the settlement are otherwise confidential.

Robert Pocknell, Sendo's Group General Counsel, stated that the settlement reinforces Sendo's commitment to the protection of its intellectual property. "With this action behind us, the company can now focus on its future development and growth."

Tom Burt, Microsoft's corporate vice president and deputy general counsel said that, having reached this agreement, "We're pleased with this resolution and look forward to continuing to collaborate with phone manufacturers to bring innovative products to mobile customers."

This settlement resolves all claims in this litigation, both in the United States and in the United Kingdom.