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AlphaCell Introduces the M5 Music Device at 3GSM

Entertainment Editors/Business Editors/High-Tech Writers

3GSM World Congress 2004

Hall 4, Stand K2

RA'ANANA, Israel--(BUSINESS WIRE)--Feb. 24, 2004

AlphaCell Wireless 2001 Ltd., an Emblaze Group company (LSE:BLZ) and a provider of customised mobile handsets for the entertainment market, announced the imminent launch of its M5 Music model. This new mobile handset has a design and user-interface dedicated to mobile music services, which can be handpicked by operators. Visitors to AlphaCell's stand at 3GSM (Hall 4, Stand 2K) will be able to try out the M5 Music first hand.

The M5 Music marries form with function. It is a pocket-sized device with an ergonomic design for a convenient and enjoyable listening experience. AlphaCell has designed the handset with four programmable soft keys around the screen that offer one touch access to music content and operator services.

AlphaCell has incorporated a tailored, customisable interface into the M5 Music, which gives easy access to stored artist lists, a playlist organiser and music-themed content. Complementing this is a host of further interactive connectivity features including email, MMS, SMS and Internet browsing.

The M5 Music contains an MP3 player and port for an MMC SD card, alongside advanced audio and visual effects, including a 10-band equalizer, preset sounds and ID3 tags. MP3 files can be copied to the M5 Music for 'on the go' listening and it can also sync with a computer in order to download favourite music clips. The handset stores up to nine hours of music and more when attaching an MMC card.

With revenues from music and media services is predicted to grow from $906 million in 2004 to $5.9 billion in 2007, according to Strategy Analytics, the M5 Music is aimed squarely at the youth market. It offers a ready-made revenue stream for operators via its tailored content and instantly accessible services. The customisable user interface is also an opportunity for brand continuity and extension.

Avner Mor, CEO of AlphaCell, explained: "We have created a phone dedicated to the rapidly growing interest in music over mobile devices. It means that operators can now develop a handset with content, services and design values that tap directly into this increasingly popular sector."

"Instead, the M5 Music lets operators decide what content and services they will include and how they will generate revenue from the phone. We can help with this, by providing content from Emblaze Systems for instance, but the ultimate power is with the operator."

Key features of the M5 Music:

-- Handset design optimised for music related applications

-- Stereo jack

-- 16 polyphonic sounds

-- Vibrating mechanism

-- 3D sound support

-- Audio player

-- Audio recorder

-- MP3 player

-- Ringtone composer

-- AMR to MIDI converter

-- MP3 file to transfer to PC

Key features of the AlphaCell M5:

-- GPRS dual-band (GSM 900/1800)

-- Microsoft's CE.NET operating system

-- Dual processor, including a separate multimedia application

processor which dramatically enhances the platform's ability

to support enhanced services

-- Full graphic LCD TFT display with 65K colours (16-bit)

-- Resolution: 176 x 220 pixels

-- Ring tones and hi-fi tones (16 polyphonic)

-- Enhanced messaging capabilities

-- Gaming engine dedicated to entertainment services

-- Integrated colour camera for stills and video

-- IrDA and USB technologies

-- Customised applications

Notes to editors:

About AlphaCell

AlphaCell, an Emblaze Group company, is a leading provider of customised rich media handsets. Its unique technologies coupled with its versatile, customer-focused delivery platform enable AlphaCell to rapidly and cost-effectively provide precisely tailored handset solutions. The company's handsets are designed to facilitate an unparalleled wireless communication experience for end users, empowering its customers to broaden their service offering and expand their brand strategy. The M5, AlphaCell's flagship device is fully customisable - from casing colour and logo to user interface design, with value-added services targeted to niche markets. AlphaCell is led by a core team of technology and business managers with extensive experience in the wireless market, and backed by a dedicated group of engineers with a proven track record in handset development.

www.alphacell.com

About The Emblaze Group (Emblaze Ltd.)

Emblaze Ltd. consists of four companies sharing a common vision to lead the market transformation to rich media personal communication:

Emblaze Systems, a leading provider of media centric end-to-end solutions for wireless multimedia; AlphaCell, a wireless rich media smart phone design house; Orca Interactive, a global market leader in the development of highly scalable solutions for commercial iTV services; and Emblaze Semiconductor, a fabless IC company specialising in highly integrated digital multimedia chips for telecommunication, consumer and security markets.

Emblaze Ltd. has offices in the United States, United Kingdom, China and Israel.