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Socket Communications and SkyeTek Execute RFID Technology Agreement

Exclusive License Paves Way for Development of a Broad Range of RFID Products For Mobile Computing and Handheld Devices

Newark, CA– 1/26/2004 – Socket Communications, Inc. (NASDAQ: SCKT, PSE: SOK), the Mobile Connection™ Company, today announced an agreement for Socket to license worldwide SkyeTek's Radio Frequency Identification (RFID) technology on an exclusive basis for the development of a broad range of products for mobile computing and handheld devices. The arrangement allows for multiple RFID frequency implementations and multi-function capabilities. This includes SkyeTek's recently announced multi-protocol RFID reader/writer, SkyeRead™ M1-mini, measuring just 1 inch square – the world's smallest device of its kind. Early technology demonstration and developer products from Socket are expected to be available in the middle of 2004.

"RFID products will be an extension to Socket's existing bar code scanning business for the AutoID markets," said Mike Gifford, Socket's founder and executive vice president. "The new products will broaden our customer base as RFID technology is implemented and gains momentum. We selected SkyeTek's technology because of its small form-factor, low power consumption, and firmware adaptability."

"SkyeTek is extremely pleased to partner with Socket for solutions in the mobile and handheld device markets," said Jonathan Bein, Ph.D., SkyeTek's president. "Socket is a leading provider of products and solutions for the AutoID markets with worldwide distribution supported by VARs and system integrators. This partnership is positioned to meet a growing demand for RFID and mobile computing."

About RFID
Radio frequency identification (RFID) first appeared in tracking and access applications during the 1980s. RFID wireless AIDC systems allow for non-contact reading and are effective in manufacturing and other hostile environments where bar code labels can not survive. RFID systems have tags and readers. Tags are microchip based radios with built-in antennas, which already have shrunk to the size of postage stamps. They listen for a radio query from a reader and respond by transmitting their unique ID code. RFID is established in a wide range of markets including retail, healthcare, livestock identification and automated vehicle identification (AVI) systems because of its ability to register and record moving objects.

About SkyeTek
SkyeTek develops and manufactures the most flexible, easily embedded and low-cost advanced radio frequency identification (RFID) read/write modules for OEMs, VARs and Systems Integrators to meet the demands of emerging RFID markets worldwide. The SkyeRead™ family of RFID reader modules includes one-inch square models, mini models and encrypted-data models complete with development kits and a wide range of software interfaces to enable fast starts for developers. SkyeTek supports a full range of ISO, EPC and industry standard RFID tags and smart labels. SkyeTek markets high-volume licensing and private-label options directly to OEM customers in a variety of verticals, as well as through a network of distributors, value-added resellers (VARs) and system integrators. SkyeTek is based in Boulder, Colorado and can be reached at 702-565-0441 or www.skyetek.com.

About Socket Communications
Socket Communications, Inc., the Mobile Connection™ Company, provides the broadest range of connectivity products for Windows Powered computers, focusing on handhelds including Pocket PCs, Windows CE devices, Palm PDAs and mobile phones. Socket's Mobility Friendly™ products are feature-rich while promoting ease of use and lead the market with the smallest footprint and the most Battery Friendly® power consumption in their class. Socket's Embedded Systems Group provides solutions using mobilityIC™ interface chips, KwikBlue™ modules with embedded Bluetooth wireless technology and a family of bar code scanning products. Socket is headquartered in Newark, California and can be reached at 510-744-2700 or www.socketcom.com.

For more information on RFID and upcoming Socket RFID products, click here.




Socket and Battery Friendly are registered trademarks of Socket Communications, Inc. The Mobile Connection Company, Mobility Friendly, KwikBlue and mobilityIC are trademarks of Socket Communications, Inc. The Bluetooth word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Socket Communications, Inc. is under license. All other trademarks and trade names contained herein are those of their respective owners. 2004, Socket Communications, Inc. All rights reserved.

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