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  OPENWAVE ACCELERATES COST REDUCTION PLAN
  

  REDWOOD CITY, Calif. - June 19, 2003 -- Openwave Systems Inc. (NASDAQ: OPWV), the leading independent provider of open software products and services for the communications industry, today announced that it is accelerating its cost reduction plan for the second half of 2003. This action supports the Company's previously announced efforts to reduce operating expenses and to achieve EBITDA (earnings before interest, taxes, depreciation and amortization of assets including deferred stock-based compensation expense) breakeven.

The cost reductions will result in the elimination of approximately 180 positions, or 12% of the company's employees. The reduction will lower quarterly expenses by approximately $10 million within the next two to three quarters, beginning with the quarter ending September 30, 2003. The Company will record a total charge of approximately $8 to $14 million relating to this activity split between the quarters ending June 30 and September 30.

The cost reductions include, but are not limited to, the elimination of certain positions that support a development and porting project, which has been contributing approximately $5 million a quarter in project revenue. The majority of the development and porting for this project is complete and the focus is now on sales and marketing. Therefore, Openwave's project revenue will decrease to $2 million a quarter plus or minus 15 percent, beginning in the quarter ending September 30.

"We continue to be cautiously optimistic about operators' increased focus on mobile data and services that create a differentiated experience," said Don Listwin, president and CEO of Openwave. "We believe these cost reductions along with our go to market strategy with partners and our strong product and services portfolio will allow us to achieve our financial and operating goals."

About Openwave
 
Openwave Systems Inc. (Nasdaq: OPWV) is the leading provider of open software products and services for more than 70 mobile operators, 45 handset manufacturers and 22 broadband suppliers. Openwave's breadth of products, including phone software, multimedia messaging software(MMS), email, location and mobile gateways, along with its worldwide expertise enable its customers to deliver innovative and differentiated data services. Headquartered in Redwood City, California, Openwave has offices in 28 locations in 14 countries. For more information, please visit www.openwave.com.

Cautionary Note Regarding Forward Looking Statements
 
This release contains forward-looking statements relating to expectations, plans or prospects for Openwave Systems Inc. that are based upon the current expectations and beliefs of Openwave's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (a) the ability to realize our strategic objectives by taking advantage of market opportunities in the Americas, Europe, the Middle East, and Asia; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of our current, new and potential customers, suppliers and strategic partners; (c) risks associated with the development and licensing of software generally, including potential delays in software development and technical difficulties that may be encountered in the development or use of our software; (d) the effects of our restructurings and the ability to successfully support our operations; (e) the potential negative reaction by our customers to our reduced size and market capitalization; (f) the ability to recruit and retain qualified, experienced employees; (g) the willingness of communication service providers to invest and improve their data networks; (h) the ability to successfully partner with other companies; (i) the ability to acquire additional companies and technologies and integrate such acquisitions; (j) increased global competition; (k) technological changes and developments; (l) general risks of the Internet and wireless and wireline telecommunications sectors; and (m) the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate further.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2002, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2003, and subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave's Web site at www.openwave.com. The Company assumes no obligation to update the forward-looking statements included in this document.

 
Openwave and the Openwave logo are trademarks and or registered trademarks of Openwave Systems Inc. All other trademarks are the properties of their respective owners.

For further information:
 
Contact Openwave Worldwide Public Relations

  



 
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