GLOBAL DEMAND FOR E-OTD DRIVES 60% REVENUE GROWTH AT CPS

Major global handset and equipment vendors adopt standardised GSM high accuracy wireless location technology

21st January 2003 - Cambridge Positioning Systems Ltd (CPS), world leaders in GSM high accuracy location technology, today announced 60 per cent year on year revenue growth following global industry adoption of its E-OTD technology.

The company secured a number of significant sub-licensing deals with major network equipment vendors and saw its new software integration facility expand rapidly as handset and chipset manufacturers sought to bring E-OTD enabled devices to market.

Revenue growth was accompanied by strong invoicing - up 100 per cent over the same period - with the company retaining a strong cash position going into 2003.

2002 highlights include:

-   sub-licence agreements with Ericsson, Siemens and Nortel Networks
-   launch of world's first E-OTD enabled handset from Samsung
-   E-OTD chipset integration agreements signed with Intel, Texas Instruments
-   25-plus E-OTD projects underway via new integration facility
-   world first E-OTD applications trial in Singapore

CPS Chief Executive Chris Wade said: "Despite difficult market conditions in the global wireless market, we have seen strong revenue growth coupled with increasing demand for our solutions and services.

"The industry has moved forward significantly during the year - from trialling to deploying, from testing to integrating our technology. We are now seeing E-OTD inside network and handset offerings from the major global players.

"While network sub-licensing remains our major revenue generator, our integration facility, opened at the start of the year, is also making a growing contribution with 25 plus projects either completed or underway.

"For the year ahead, we see continued industry collaboration towards driving even greater E-OTD accuracy - plus significant opportunities developing for our new generation Cursor Matrix E-OTD technology which will deliver high accuracy but at up to a 70 per cent cost saving compared to rival technologies.

"We are encouraged by global developments and demand for location technology. A key highlight for us this year has been a major trial of high accuracy location services in Singapore - where we worked alongside Singtel, the Singapore Government and local application developers in the delivery of a successful and ongoing trial."

Robert Hook, Managing Partner of Prelude Ventures, which has been a key investor in CPS since its inception, said: "This has been an outstanding performance by the company in what has been a very difficult year for the wireless industry.

"It is clear recognition of CPS's leadership in E-OTD - providing the most advanced and best performing high accuracy low cost location technology for the expanding global GSM industry."

For further information, contact:

Colin Ashcroft
Cambridge Positioning Systems
Tel: +44 (0) 1223 326984
Mobile: +44 (0) 7769 740 296
E: colin.ashcroft@cursor-system.com

About CPS:
Cambridge Positioning Systems Limited (CPS) is the key enabler for high accuracy location in the GSM wireless world. Its innovative E-OTD (Enhanced Observed Time Difference) technology allows network operators to develop new services that improve the safety of their customers and deliver profitable applications.

Regarded as the location standard for the GSM market, E-OTD (Enhanced Observed Time Difference) uses sophisticated mathematical algorithms to determine a user's position. CPS has licensed this cost effective technology -deployed in both the wireless network and the mobile device - to leading global vendors for integration into their network infrastructure products. Technology trials and deployments are currently underway in the US, Europe and the Asia Pacific region.

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