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  OPENWAVE GROWS REVENUE 43% IN THIRD QUARTER
  

  Customer Demand and Growing Marketplace Fuels Growth
 
REDWOOD CITY, Calif. - April 27, 2005 -- Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, today announced that revenues for its third fiscal quarter ended March 31, 2005 were $106.3 million, an increase of $12.8 million, or 14%, from $93.5 million during the preceding quarter ended December 31, 2004 and an increase of $32.1 million, or 43%, from $74.2 million during the March quarter in the preceding year.

"Coming off last quarter's strong performance, we are pleased to show continued growth and improving financial fundamentals," said David Peterschmidt, president and CEO of Openwave. "Robust customer demand for both our client and server software by handset manufacturers, carriers and service providers fueled this quarter's results and we expect Openwave client software to be incorporated into more than one billion phones worldwide by the end of the next quarter. Our market is seeing rapid growth and Openwave is well positioned to become the core for any communication across broadband, wireless and handset devices."

On a GAAP basis, net loss for the third fiscal quarter ended March 31, 2005 was $2.6 million or $0.04 per share, compared to net income of $1.9 million or $0.03 per diluted share for the preceding quarter and a net loss of $5.7 million or $0.09 per share for the March quarter in the preceding year. Net income on a non-GAAP basis, which excludes amortization of intangibles and acquisition-related stock-based compensation, and restructuring and related costs, for the third fiscal quarter ended March 31, 2005 was $4.7 million, or $0.07 per diluted share, compared with $4.6 million, or $0.07 per diluted share in the prior quarter. A reconciliation between net income (loss) on a GAAP basis and a non-GAAP basis is provided below in a table immediately following the Condensed Consolidated Statements of Operations.

At March 31, 2005, the Company had cash, cash equivalents, short-term and long-term investments totaling $274.5 million, of which $25.8 million is set aside as restricted cash. Net cash used in operating activities during the three months ended March 31, 2005 was $0.9 million, which included $2.9 million of cash used for restructuring liabilities.

Conference Call Information
Openwave has scheduled a conference call for 5:00 p.m. eastern time today to discuss its financial results for its fiscal third quarter ended March 31, 2005. Interested parties may access the conference call over the Internet through the Company's web site at www.openwave.com or by telephone at (888) 423-3275 or (651) 291-0618 (international). A replay of the conference call will be available for one week beginning at 8:30 p.m. eastern time on April 27 by calling (800) 475-6701. The replay can be accessed internationally by calling (320) 365-3844. Reservation number: 778710.

A live webcast of the call, together with supplemental financial information, will also be available on the Quarterly Earnings section of Openwave's website at http://investor.openwave.com/medialist.cfm for at least 12 months.

Non-GAAP Measure
The company's stated results include a non-GAAP measure, non-GAAP net income (loss), which excludes amortization of intangibles and acquisition-related stock-based compensation, and restructuring and related costs. The company considers this to be an important measure because it provides a useful measure of the operational performance of the company and is used by the company's management for that purpose. In addition, investors often use a measure such as this to evaluate the financial performance of a company. Non-GAAP net income (loss) results are presented for supplemental informational purposes only for understanding Openwave's operating results. These non-GAAP results should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies.

About Openwave
 
Openwave Systems Inc. (Nasdaq: OPWV) is the leading independent provider of open software products and services for the communications industry. Openwave's breadth of products, including mobile phone software, multimedia messaging software (MMS), email, location and mobile gateways, along with its worldwide expertise enable its customers to deliver innovative and differentiated data services. Openwave is a global company headquartered in Redwood City, California. For more information please visit www.openwave.com.

Cautionary Note Regarding Forward Looking Statements
 
This release contains forward-looking statements relating to expectations, plans or prospects for Openwave Systems Inc. that are based upon the current expectations and beliefs of Openwave's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Notwithstanding changes that may occur with respect to matters relating to any forward looking statements, Openwave does not expect to, and disclaims any obligation to, update such statements. Openwave, however, reserves the right to update such statements or any portion thereof at any time for any reason.

In particular, the following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (a) the ability to realize our strategic objectives by taking advantage of market opportunities in the Americas, Europe, the Middle East, and Asia; (b) the ability to make changes in business strategy, development plans and product offerings to respond to the needs of our current, new and potential customers, suppliers and strategic partners; (c) risks associated with the development and licensing of software generally, including potential delays in software development, technical difficulties that may be encountered in the development or use of our software, and potential infringement claims by third parties; (d) the effects of our restructurings and the ability to successfully support our operations; (e) the ability to recruit and retain qualified, experienced employees; (f) the willingness of communication service providers to invest and improve their data networks; (g) the ability to successfully partner with other companies; (h) the ability to acquire additional companies and technologies and integrate such acquisitions; (i) increased global competition and pricing pressure on our products; (j) technological changes and developments; (k) general risks of the Internet and wireless and wireline telecommunications sectors; and (l) the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2004, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Openwave's Web site at www.openwave.com.

Download the financials here (.pdf).
 
Openwave and the Openwave logo are trademarks and or registered trademarks of Openwave Systems Inc. All other trademarks are the properties of their respective owners.

For further information:
 
Contact Openwave Worldwide Public Relations

INVESTOR CONTACTS
Mike Bishop
Senior Manager, Investor Relations
Openwave Systems Inc.
650-480-4461 		 



 
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