Benefon Oyj - Company Announcement

BENEFON SIGNS LETTER OF INTENT TO ACQUIRE GEOSOLUTIONS BV

Benefon Oyj today announced it has signed a letter of intent to acquire         
GeoSolutions BV, a developer of location-based technologies, products, and      
services for mobile and Internet-connected devices.                             

Based in Amsterdam, GeoSolutions provides an innovative method 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.  GeoSolutions´ products provide 
Mobile Network Operators, Mobile Handset Manufacturers and Directory Providers  
(Yellow and White pages) sizeable income potential from mobile-based localized  
geo-targeting. GeoSolutions´ approach to large-scale channels combined with a   
distinctive information offering and unique user experience makes certain its   
ability to achieve and maintain a critical mass of mobile users.                

Benefon expects the acquisition of GeoSolutions BV, a pre-revenue software      
company, to generate significant revenues and to be accretive to earnings       
reasonably soon from the acquisition to make it attractive. Benefon will acquire
GeoSolutions BV for approximately €6 million in stock. Completion of the        
transaction, which will be made through a Dutch subsidiary to be established, is
subject to regulatory and other customary closing conditions and is expected to 
be completed by April 30.                                                       

"We believe the GeoSolutions acquisition will allow Benefon to answer users     
increasing demands for location information and content," said Tomi Raita,      
president and CEO of Benefon. "The company's solutions are expected to          
significantly contribute to Benefon's value proposition and growth." "The       
acquisition enables Benefon to integrate GeoSolution's world-class technology   
throughout its handsets and other OEM devices as well as offer more value to    
consumers and businesses through the addition of added content, which provide   
higher-quality search results," added Mr. Raita.                                





Benefon Oyj                                                                     



Tomi Raita                                                                      
CEO                                                                             









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 BVis 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.