Benefon Oyj - Company Announcement

BENEFON SIGNED A DEFINITIVE AGREEMENT FOR PURCHASE OF GEOSOLUTIONS B.V.

Benefon announced today that it has signed the definitive share exchange        
agreement for the acquisition of pre-revenue software company GeoSolutions B.V.,
a developer of location-based technologies, products, and services for mobile   
and Internet-connected devices. The Letter of Intent for the acquisition was    
announced on March 5th, 2007. In deviation with the aforementioned bulletin, the
acquisition shall be made by Benefon Oyj.  GeoSolutions will finally be owned   
through a Dutch subsidiary to be established. The GeoSolutions technology will  
leverage Benefon's GPS leadership and heritage by providing location based      
search technology, a communities platform, location relevant multimedia content,
top industry personnel and most importantly, a new and powerful commercial      
model.  It was also agreed that Octagon Solutions Limited would nominate and    
vote for GeoSolutions co-founder and CEO Dan Harple to join the Board of        
Directors of Benefon Oy in the Company's Annual General Meeting to be held.     

Under the terms of the share exchange agreement, Benefon will purchase the      
entire share capital of GeoSolutions from GeoHolding B.V. in exchange for 30    
million shares of Benefon. Additional shares shall be issued provided that      
certain agreed targets or arrangements are met during the first year. Hence the 
initial purchase price is EUR 6,000,000. The deal is subject to regulatory and  
other customary closing conditions and is expected to be completed by April 30, 
2007. The Board of Directors of Benefon will propose to the Annual General      
Meeting to be convened that it will be authorized to decide on the directed     
share issue to GeoHolding and the terms and conditions thereof.                 

"The GeoSolutions technology increases Benefon's reach by providing software and
location services that are interoperable across competitive handset             
manufacturers, thereby strategically positioning Benefon as a mobile software   
solutions provider," said Brian Katzen, Chairman of Benefon, "the market        
opportunity is large and growing fast. The founders of GeoSolutions have in     
their tenure been responsible for major patents and Internet standards in the   
areas of streaming media, conferencing & collaboration, and enterprise content  
management. They bring that experienced skill-set to the Benefon team, a deal   
which we are incredibly positive about.”                                        

GeoSolutions BV brings highly successful industry-leading management to the     
Benefon team, with a track record of innovation and value generation in the     
Internet and Networking space, with the team having senior executive experience 
at companies such as Oracle, Netscape Communications Corporation, AOL/Time      
Warner, and UUnet. The team has experience building enterprise and              
consumer-based desktop and mobile software suitable for mass markets; over 500  
million people used past products built by this team in previous roles.         

Based in Amsterdam, GeoSolutions delivers products enabling mobile users to     
access not only traditional Internet-based content but also access to user      
generated content and local information that is aggregated from third party     
information sources such as directory services.  Mr. Harple stated, "Amsterdam  
is the hub of geo-technology, globally.  Our presence here will tap the deep    
experience base in the region, further enhancing our ability to create          
geo-integrated mobile applications and solutions that connect people to the     
places they care about.  Our deal with Benefon establishes a new software and   
applications subsidiary that is addressing a very large market, while at the    
same time providing differentiation for Benefon in their traditional market     
segments."                                                                      

BENEFON OYJ                                                                     

Tomi Raita                                                                      
CEO                                                                             

For more information, please contact:                                           
Tomi Raita, CEO, tel. +358-2-77400                                              
www.benefon.com                                                                 


About Benefon Oyj                                                               
Benefon is a leader in innovative wireless communication instruments, renowned  
for its unparalleled performance, professional quality and Finnish design.      
Headquartered in Salo, the wireless industry center of Finland, Benefon has     
designed and manufactured wireless terminals for GSM and NMT systems since 1988.
Additional information about Benefon and its products is available at           
http://www.benefon.com/.   Press releases can be found at                       
http://www.benefon.com/press/                                                   
                                                                                
About GeoSolutions BV                                                           
Based in Amsterdam, GeoSolutions BV is a developer of location-based            
technologies, delivering products and services that connect people to places and
networks.  GeoSolutions BV enables mobile users to create user-generated content
that is shared from the mobile device to the Internet desktop.  GeoSolutions    
products are distributed through its own branded service and through a white    
label program to mobile network operators, mobile handset developers, and       
directory providers.                                                            

Distribution:                                                                   
Nordic Exchange                                                                 
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