EPOS Breaks Into U.S. Consumer Electronics Market With Revolutionary 3-D Positioning Products

EPOS, a leading provider of advanced,
multi-dimensional digital positioning technology, today announced its
entrance into the U.S. consumer electronics, mobile and interactive gaming
markets. EPOS' break-through technology enables next-generation,
positioning-driven applications and consumer electronics products at mass
market pricing appeal.

Applications and products that can benefit from EPOS technology are
limitless, including a wireless digital pen and mouse product for PCs, a
mobile phone stylus that turns one's device into an instant virtual
touch-screen and a virtual gaming product that provides the user with full
control and 3-D interactivity.

To kickoff its U.S. launch, this week EPOS is announcing its first product
specifically geared towards the digital consumer electronics market -- a
wireless digital pen & mouse bundled solution. This multipurpose, wireless
PC peripheral enables a diversified audience, including cyber teens to
students to urban professionals and the elderly, to wirelessly capture and
display handwritten notes on a PC, point and click with full mouse
functionality, draw and share sketches digitally via email and messaging
applications, and transform handwritten notes to text, all seamlessly and
in real-time.

Unlike competitive products, EPOS' wireless digital pen & mouse does not
require special paper or a tablet, runs on minimal battery consumption and
retails at an extremely low price point.

"EPOS' new wireless digital pen & mouse is the first step of a full suite
of next generation digital consumer electronic devices powered by
positioning technology. We are excited to follow this inaugural launch at
CES with another break-through EPOS product," said Oded Eliashiv, chief
executive officer of EPOS. "EPOS' vision is to change the way users
interact with their digital environment. By introducing advanced
positioning technology to PC, mobile and gaming products, we hope to bring
a whole new dimension of digital freedom to the consumer electronics
world."

EPOS' positioning technology is unique because it is based on the
transmission of ultrasonic acoustic waves between two or more devices via a
"Transmitter" and a "Receiver." The transmitter, embedded in a device such
as a pen or other wireless terminal, sends constant acoustic signals to the
receiver that in turn, uses them to measure the exact distance and position
of the device.

Unlike previous positioning technologies utilizing acoustic measurement,
EPOS is the first company to transform the acoustic domain into digital.
By digitizing the acoustic signal, EPOS' technology can pinpoint the exact
distance and position of the device as well as support several devices
simultaneously.

EPOS Technology Benefits:
Cutting-edge technology at mass market prices
Minimal battery power consumption
Requires minimal real estate
Solutions span the entertainment, home and office
environments
Wireless Terminal Units can
interact with one or more base stations while maintaining their unique
identity
Works with 802.11, BT, IR or other wireless
protocols
Easily manufactured, utilizing standard
fabrication techniques
Fast time-to-market with extremely low
development costs

EPOS' wireless digital pen and mouse will be available in U.S. retail
stores in Q2 of 2006. For additional information on the product,
including specifications, as well as on the company and its activities at
CES, visit the EPOS Web site at: www.epos-ps.com.

About EPOS

EPOS is a global leader in providing advanced, multi-dimensional
positioning technology for next-generation, interactive-driven products and
applications in the consumer electronics, mobile and gaming markets. The
company provides revolutionary high-resolution, low power consumption
positioning technology for an unlimited range of products targeted at CE
manufacturers. EPOS has representatives throughout the US, Europe, Hong
Kong, Israel and Japan. EPOS investors include Jerusalem Venture Partners
(www.jvpvc.com) and Tel-Ad Electronics (www.tel-ad.com.il).

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