Newport Digital Technologies to Implement Microsoft Licensing Agreement; Prepares to Launch First Ruggedized RFID Reader with the Windows Mobile Operating System

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N37B Ruggedized Handheld Computing Device Nearing Certification for Major Telecom Company; Company Targets Ingram Micro as First Major Sales Channel Partner

We are very excited to work with Microsoft's technology and business teams to develop the next generation of RFID computing devices by utilizing Windows Mobile with customized application suites

Newport Digital Technologies, Inc. (OTCBB: NPDT), a technology solutions driven company focused on rapidly emerging businesses in the wireless technology space, announced today that it has implemented the licensing agreement with Microsoft Corp. (NASDAQ: MSFT) to develop applications for its Windows Mobile platform. The Company has also progressed with their distribution agreement previously announced with Ingram Micro, Inc. (NYSE: IM), which will serve as its initial primary sales channel partner.

Newport Digital Technologies, Inc. (NPDT), in conjunction with leading Taiwan based R&D technology incubators, the Institute for Information Industry (III) and the Industrial Technology Research Institute (ITRI), is commercializing a number of leading edge Radio Frequency Identification (RFID) technologies. The first product is the N37B Ruggedized Handheld RFID reader and computing device that was unveiled this week at the Voluntary Interindustry Commerce Solutions Association (VICS) conference hosted by the University of Arkansas RFID Research Center. NPDT is a named sponsor of this research center at the Sam Walton College of Business. The N37B will also offer two more complementary integrated options that includes 3G connection module and location and navigation based GPS. The 3G option will enable the handheld to have data connectivity anywhere a cellular connection is available making for a “connect anywhere” scenario for RFID business applications. The GPS option will allow for the N37B to not only collect RFID data from item level inventory but to pinpoint and report the location of the inventory scanned by the RFID reader. This greatly enhances and expands the applications that can be offered from Independent Software Vendors (ISVs).

“We are thrilled to be approaching final certification of this RFID reader for use on a major telecom’s wireless network,” said NPDT CEO Gary DeMel. “We are also excited by the response of the RFID industry at the VICS conference to the total RFID solution NPDT demonstrated at the VICS conference. The N37B, which will run on Microsoft’s Mobile Computing Platform, has wide application in RFID market. NPDT will offer this device along with a comprehensive line of mobile computing products and solutions targeting RFID field applications for asset tracking, inventory management and point-of-sale for various B2B markets.”

NPDT's planned RFID product suite includes: Electronic Product Code (EPC) Global certification laboratories, ruggedized, military/commercial-grade RFID enabled, mobile handheld tablet computers, RFID forklifts, POS kiosks, POS Checkout, EAS readers, USB readers and RFID tags. Utilizing the Microsoft Windows Mobile operating system, NDPT will further extend the features and capabilities of its products.

"Newport Digital Technologies has developed truly innovative RFID technologies and we are thrilled to work with them to bring these technologies and applications to the Windows Mobile platform," said Daren Mancini, General Manager in the Windows Mobile Sales division at Microsoft.

"We are very excited to work with Microsoft's technology and business teams to develop the next generation of RFID computing devices by utilizing Windows Mobile with customized application suites," commented Gary DeMel, CEO. "Microsoft, which provides software and hardware products and solutions worldwide, is one of the world's premier companies and we are looking forward to partnering with them through a successful licensing agreement. This agreement may prove to be the springboard that launches Newport Digital into becoming a recognized name in the wireless space. We are proud to be a company with technology that Microsoft believes in."

“At the VICs Conference NPDT was presented as sponsor alongside Motorola, Impinj, Avery Dennison, and ADT; all leaders in the RFID industry today,” said NPDT CTO and COO Weiling Tsao. “The NPDT demonstration booth, in our opinion, was by far the most elaborate, and the only one having live RFID demo’s. NPDT is not interested in just selling a single device or product; our focus is to deliver a total end-to-end RFID solution. Using the Microsoft Operating System enables us to accommodate almost nearly all of our potential customer base. We look forward to providing more guidance to our shareholders and clients as we further develop our RFID solutions.”

About Newport Digital Technologies, Inc.

Newport Digital Technologies, Inc. is a technology solutions driven company organized to focus on serving five of the fastest-emerging businesses in the technology space -- RFID (radio-frequency identification), WiMax, eLearning, Digital Signage & LED Lighting and Security & Surveillance solutions. NPDT develops and delivers these technology solutions through strategic collaborations with global partners, including Taiwan Industry and Taiwan's premier technology R&D incubators -- the Institute for Information Industry (III) and the Industrial Technology Research Institute (ITRI) NPDT will customize these technology solutions and market them through Fortune 1000 channel partners and systems integrators on a worldwide basis.

Safe Harbor: This press release contains certain forward-looking statements with respect to NPDT and its business. Statements that are not historical facts are identified as "forward-looking statements." The words "estimate," "project," "intend," "expect," "believe," "plan," and similar expressions, particularly when used in the "future tense," are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Information on potential risk factors that could affect the Company's business plans and financial results can be found in the Company's reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Newport Digital Technologies, Inc has its headquarters located in Newport Beach, California, and branch offices Taiwan, Australia and Japan.


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