Openwave Systems Inc. (Nasdaq:OPWV), today announced the execution of a
definitive agreement for Microsoft to acquire Musiwave, a leading
provider of mobile music entertainment services to operators and media
companies, and a wholly-owned subsidiary of Openwave.

“Musiwave’s strong
customer relationships, superior quality of services, and leadership
position in mobile music were attractive to Microsoft and contributed to
the ultimate purchase price,” said Robert
Vrij, president, CEO and interim Chairman, Openwave. “As
we committed to our investors, the divestiture of Musiwave was an
important component of the plan developed by the Openwave Board and
management team to focus on driving market leadership in the core assets
of our business, including service management, messaging, client and
location.”

Financial Terms and Schedule

Under the terms of the definitive agreement, Microsoft will acquire
Musiwave for $46 million in cash and assume net debt. As of September
30, 2007, Musiwave had a net debt of approximately $4 million. The
transaction is expected to close following the completion of customary
closing conditions including regulatory approval. Merrill Lynch & Co.
served as exclusive financial advisor to Openwave in the transaction.

“Microsoft is committed to delivering
connected entertainment experiences for all consumers, including the
access to rich music content,” said Pieter
Knook, senior vice president of the Mobile Communications Business at
Microsoft. "With the acquisition of Musiwave, we are deepening our
position in the mobile entertainment market with an innovative provider
to help broadly deliver a breadth of music software and services.”

About Musiwave

Musiwave is a leading provider of mobile music entertainment solutions,
including software, marketing and content management, to operators and
media companies worldwide. Musiwave provides mobile music entertainment
services to 30 mobile operators in 25 countries and powers more than 20
full-track mobile music services. For more information, please visit www.musiwave.net [1].

About Openwave Systems

Openwave Systems Inc. (Nasdaq:OPWV) is one of the world’s
leading innovators of software applications and infrastructure designed
to enable revenue-generating, personalized services, including
merchandising and advertising, which converge the mobile and broadband
experience across all of a user’s devices.

As the communications industry intersects with the Internet, Openwave
software enables service providers to converge services, increasing the
value of their networks by accelerating time to market and reducing the
cost and complexity associated with new service deployment. Openwave’s
unique product portfolio provides a complete range of service
management, messaging, location and client technologies. Openwave is a
global company headquartered in Redwood City, California.

Openwave is a trademark of Openwave Systems Inc. All other trademarks
are the properties of their respective owners.