CellPoint Executes Strategic Plan to Accelerate Toward Positive Cash Flow

CellPoint Executes Strategic Plan to Accelerate Toward Positive Cash Flow Targeted Cost-Cutting Includes Closure of Unwire and South African Subsidiaries London, UK, October 4, 2001 -- CellPoint Inc. (Nasdaq: CLPT), a global provider of mobile location software technology and platforms, reported new developments in its focused strategy to achieve cash flow positive by fiscal year end. CellPoint is now concentrating entirely on its core location platform business in the fast-emerging market for mobile location services. As part of the execution of this strategy, CellPoint is liquidating subsidiary Unwire AB of Sweden and will sell or liquidate CellPoint Systems S.A. of South Africa. Closure of these operations will result in cost savings of over $600,000 per month, reducing CellPoint's operating costs to less than $900,000 per month. Discontinued operations have been previously announced as part of CellPoint's strategy to concentrate on its core location platform business and to become cash flow positive as soon as possible. "It is very important to our investors and stockholders that CellPoint uses its working capital to grow the location platform business, and not to fund discontinued operations," said Peter Henricsson, Chairman and chief executive officer. Despite weakened financial markets in the past 18 months, CellPoint has built the organizational foundation and enhanced product offerings for strong financial development. The major restructuring plan announced in July provided an outline for short term and long term financial health. Several milestones have been met and further initiatives are in process including: · Streamlining focus on CellPoint's core business of location platform technology and services while enabling open application development for location services through the Location Developers' Zone; · Cost-cutting program implemented company-wide while maintaining core competencies to enhance and implement strategic technology; · Expanding software development and support resources in Sweden; · Demonstrate CellPoint's financial and technical capacity to current and future customers; · Capitalizing on emerging market dynamics to generate increased revenue, such as opportunities resulting from delays in 3G deployment and the pressing American E-911 initiative; · Renegotiated terms of previously floating convertible notes into a manageable structure for CellPoint and its investors, remainder of $6.1 million is now fixed at a $4 conversion price; · Private placements launched to secure working capital until positive cash flow is reached and early payment of US$3.25 million of the convertible notes; · Broadening exposure with institutional investors through expanded professional channels such as KCSA Public Relations Worldwide; · Establishment of an advisory board · Ongoing expansion of the board of directors and strengthening of the management team. Henricsson continued, "Our strategic financial plan is now showing concrete results. We have renegotiated the terms of the convertible notes, raised an initial $5.25 million in private placements with a closing in North America coming at the end of this week, and we are reducing our costs substantially by streamlining our structural operations. We emphasize that we are not reducing resources or scaling back in any way the Company's core business of location platform development and implementation." In July CellPoint also announced its intention to sell its telematics subsidiary, Unwire. In the current economic climate, it has not been possible to sell Unwire in a reasonable period of time despite its innovative technology and several parties showing interest, and Unwire is being filed for bankruptcy. Management's order backlog was not materializing in expected timeframes and the board was unanimous against any further investment in this business area. The board of directors also decided to sell CellPoint Systems S.A., its South African subsidiary. Should a buyer not be found by October 12, 2001, it will be liquidated. The technical support functions performed by CellPoint Systems S.A. will be absorbed by the Company's expanded support operations in Sweden. "Without closing these businesses, the success of CellPoint's core business area would have been jeopardized," said Henricsson. The Company continues to develop strategic relationships with mobile operators and hopes to gain a significant share of the worldwide market. CellPoint believes that it can take full advantage of this fast-growing mobile sector by defining and driving the industry standards that the location industry requires. "With the high barriers to entry for robust, carrier-grade location technology platforms and an industry that is ready to take off now, we are completely focused with our proven, commercially-ready technology. We now look to the present and a promising future, with streamlined operations focused on an emerging marketplace widely projected at billions in revenue," concluded Henricsson. CellPoint Inc. (Nasdaq and Stockholmsbörsen: CLPT, www.cellpoint.com) is a US company with subsidiary operations in Sweden and Great Britain delivering mobile location technology and services in cooperation with cellular operators worldwide. CellPoint's end-to-end cellular location technology is a high-capacity system that works in unmodified GSM networks and uses standard GSM or WAP phones and standard Internet services. Several commercial applications are available for business and personal location services including Resource Managertm for mobile resource management, iMatetm for location-sensitive information and Findertm, an application for locating friends and family. For information, please contact: CellPoint Inc.: Lynn Duplessis, Tel: +44 (0)1344 624 565 info@cellpoint.com; www.cellpoint.com KCSA Public Relations Worldwide: Sarah Shepard / Michael Cimini (212) 896-1236 / (212) 896-1233 sshepard@kcsa.com / mcimini@kcsa.com CellPointtm and CellPoint Systemstm are trademarks of CellPoint Inc. Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Actual results may differ materially from those projected in any forward- looking statement. Investors are cautioned that such forward-looking statements involve risk and uncertainties which may cause actual results to differ from those described. 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