Intellisync Announces Fourth Quarter Results and Record Revenue For Fiscal 2005

SAN JOSE, CA -- Intellisync Corporation the leader in platform-independent wireless messaging and mobile software, today announced financial results for the fourth quarter and fiscal year ended July 31, 2005. Total revenue for the fourth quarter 2005 was $15.7 million, representing an 18 percent increase over the same period last year. Total revenue for the fiscal year ended July 31, 2005 was $59.5 million, a 41 percent increase as compared to $42.3 million for 2004.

On a GAAP basis, net loss was $4.6 million ($0.07 per share) for fiscal Q4, compared to net loss of $1.8 million ($0.03 per share) for the same period last year, and a net loss of $4.4 million ($0.07) in the prior quarter. For fiscal Q4, on a non-GAAP basis, Intellisync posted a net loss of $1.6 million ($0.02 per share), compared to net income of $364,000 ($0.00 per share) for the same period last year, and a net loss of $2.0 million ($0.03 per share) in the prior quarter.

For fiscal year 2005, on a GAAP basis, net loss for 2005 was $13.4 million ($0.20 loss per share), compared to a net loss for the prior year of $9.5 million ($0.16 loss per share). On a non-GAAP basis, net loss for 2005 was $3.8 million ($0.06 per share), compared to net income of $0.5 million ($0.01 per share) for the prior year. A table reconciling the non-GAAP financial measure to the appropriate GAAP [Generally Accepted Accounting Principles] measure is included in the condensed consolidated financial statements included in this release.

For fiscal Q4, carrier revenue represented 30 percent of the Company's total revenue, representing an 85 percent increase from the prior quarter. For fiscal 2004, less than 3 percent of the Company's total revenues were derived from carriers. The remainder of Q4 2005 revenues was derived from the Company's direct sales into the enterprise market, sales through other channels and licensing agreements, and direct sales to end-users.

"This last fiscal year has been monumental for Intellisync," said Woodson "Woody" Hobbs, Intellisync's President and Chief Executive Officer. "We established Intellisync as the leader in platform-independent wireless messaging and mobile software. We entered the carrier market full-force, winning deals with some of the top worldwide carriers, and growing carrier revenues by eight-fold for the year. We're very proud of the fact that we've penetrated the carrier market achieving substantial revenue growth with what we believe is an efficient and minimal use of our cash. We introduced new technologies that we believe will open up new markets for Intellisync and secured prestigious industry awards and industry analyst recognition. The Intellisync brand became well recognized by mobile decision-makers in big companies and carriers around the world.

"And we're just getting started," Hobbs added. "The markets that we serve are growing rapidly and we believe we are at the beginning of a new growth stage in the mobile software industry. Our success in the carrier marketplace in fiscal 2005 has provided a terrific platform for our future, which we believe will enable Intellisync to achieve record revenues in fiscal 2006 and profitability within the next twelve months."

Keith Kitchen , Intellisync's Chief Financial Officer, added, "The investments we have made in products, operations and sales and marketing over the last year are beginning to show dividends in our financial metrics. In fiscal 2006, we intend to further optimize our execution and operations and accelerate our pace of innovation that we believe will help continue our leadership in the enterprise and wireless carrier markets. We believe that our continued growth, combined with expected operational efficiency, will allow Intellisync to begin to report quarterly profit during our fiscal 2006."

Fourth Quarter and Fiscal Year 2004 Revenue Highlights:

• Fourth quarter total revenue up 18 percent from prior fiscal year
• Fourth quarter carrier revenue up 85 percent from previous quarter
• Fourth quarter carrier revenue represented 30 percent of total revenue
• Fiscal year 2005 total revenue up 41 percent from prior fiscal year
• Fiscal year 2005 carrier revenue up eight-fold from prior fiscal year

Recent accomplishments and major milestones for fiscal 2005:

• Intellisync reported that it had agreements in place with 35 carriers worldwide, including Verizon Wireless, Sprint, Eurotel, France Telecom, Bell Mobility, TIM, MTS Communications and Orange.
• Intellisync achieved record subscriber growth in fiscal 2005, reporting over 500,000 wireless email seats.
• Based on the Company's estimates, Intellisync became the second-largest provider of wireless push email in the world with 12 percent market share, second only to Research In Motion. The Company also asserted that, based on its recent growth in mobile push email, the open nature of its mobile software, and an analysis of total available wireless email seats as reported by other providers, Intellisync cemented its position as the number one platform-independent wireless messaging solution provider in the world.
• Intellisync acquired PDAapps, Inc., makers of VeriChat, the mobile instant messaging solution for all Palm OS devices, Pocket PC devices, Symbian devices and RIM Blackberry devices.
• With the acquisition of Tourmaline Networks, Inc., a privately held developer and the largest provider of QUALCOMM-based BREW? email products to mobile operators around the world, Intellisync now offers wireless push email for regular BREW-enabled mobile phones.
• Intellisync now has 126 patents issued and pending that cover the Company's intellectual property in push email and data synchronization for both wireless and wired communications.
• Enterprise customers who have selected Intellisync's wireless deployment platform during the fiscal year include: Target, GMAC, Rockwell Automation, Cathay Pacific Airways Limited, Sesame Workshop, Computer Software Architects (CSA), Electrolux Home Products, Union Pacific, Unisys, Ericsson, and Hawaiian Airlines.
• Intellisync announced that over 20 leading CRM application developers are "Powered by Intellisync", including Siebel, Oracle | PeopleSoft , Salesforce.com, Amdocs, NetSuite & RightNow .
• Intellisync launched Wireless Email Express, a hosted service based on an ASP model, that enables true wireless push email with the same large enterprise-class security and features as that of the award-winning Intellisync Mobile Suite product.
• Intellisync secured prestigious industry awards and industry analyst recognition, some of which include being positioned in the "Leadership" quadrant of IDC's study on the worldwide mobile middleware market, featured by Gartner as a "Challenger" in their highly regarded ?magic quadrant' on wireless email and winning the top grade in Network Computing Magazine's Mobile Messaging Gateways' review.

ABOUT INTELLISYNC CORPORATION

Intellisync Corporation (Nasdaq: SYNC) is a leading provider of wireless email and mobile platforms to large enterprises, mobile operators, software providers and device manufacturers. Intellisync has won the mobility industry's top awards by providing seamless synchronization; secure wireless email, device control and mobility management software that connects nearly every device, data source and application available. The world's largest corporations have selected Intellisync as their mobility solution standard, including America Online, Cr?dit Agricole, Domino's Pizza, Guidant, Microsoft, NTT DoCoMo, Oracle | PeopleSoft, Pfizer, Target, T-Mobile, Union Pacific, Verizon Wireless, Vivo and Yahoo! For more information, please visit www.intellisync.com.