MORGAN HILL, Calif., April 19, 2001 (PRIMEZONE) -- The recent decision by 3Com to exit the Internet appliance market underscores the need for developers to deliver products and services that consumers really want, said Paul Locklin, president and chief executive officer of Cidco, Inc. (Nasdaq:CDCO). "It's an affirmation of a classic marketing principle about listening to the customer," said Locklin. "Recent product casualties are a result of failing to consider consumers' real needs. These products were based on a belief that because it was technically feasible to connect a non-PC device to the net and receive PC-like content, consumers would find these alternative devices attractive. But the reality is products that have attempted to deliver a PC-like experience in a non-PC platform have simply confused consumers.
"Cidco learned this the hard way several years ago with our I-Phone," said Locklin. "This experience taught us that what consumers really want are simple, affordable and elegant devices focused on the most popular application on the net -- e-mail. The two most visible products in this category, the Cidco MailStation targeting consumers and the Rim wireless e-mail devices targeting business applications, are both enjoying wide acceptance and good demand."
Locklin said that the success of Cidco's MailStation -- which is small, portable, retails for $99, and currently is being sold by major national retailers including Radio Shack, Best Buy, Staples, Kmart and Target -- is evidence that the market exists for the right product. Several national retailers, having experienced the early success of MailStation in their stores, have already committed to carrying two or more Cidco SKUs.
MailStation and Cidco's new Mivo 200 currently lead their category with more than 100,000 e-mail subscribers. This is due in large part to a business strategy that directly links the products themselves with the services they provide -- especially e-mail, which is generally considered the Internet's killer application.
Locklin cited an array of data that reinforces Cidco's strategy to deliver e-mail and related services with affordable, portable devices like Mivo and MailStation, including:
* A study by Cahners In-Stat Group that estimates sales of Internet appliances will grow 40 percent a year, reaching $1.3 billion by the end of 2005.
* A report in Messaging Online that says the number of e-mailboxes in the United States had jumped 73 percent to 333.5 million since the end of 1998.
He also pointed to news reports in which a Gartner Group spokesperson, reacting to 3Com's pullback, indicated that consumers won't spend $500 or more for an email device when they can purchase a low-end PC for near the same price. The same consumers balk at a three-year contract for Internet services, said the spokesperson.
Cidco offers those same services for $9.95 per month, and gives consumers the option of paying on a month-to-month basis rather than being forced into multi-year contracts -- advantages that Locklin said leverage the general appeal of MailStation and Mivo.
Cidco Inc. is a worldwide leader in personal Internet communications products and services that enable consumers to communicate simply and easily over the Internet. Cidco introduced its first Internet appliance in 1998, and now provides a family of portable, affordable, easy-to-use devices that make e-mail and other Internet-based information readily available to consumers. Its MailStation and Mivo products have become the products of choice for those seeking alternatives to bulky PCs and expensive laptops for simple electronic communication.
The company is headquartered in Morgan Hill, Calif., at the south end of Silicon Valley. For additional information, visit www.CIDCO.com or call (408) 779-1162.
MailStation, Mivo and Cidco are trademarks of Cidco Incorporated. All other trademarks are the property of their respective owners.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This news release contains forward-looking statements or predictions. These statements represent our judgment as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties are discussed in depth in Cidco, Inc. filings with the SEC, copies of which may be accessed through the SEC's World Wide Web site at http://www.sec.gov.