Openwave Reports Final Fiscal 2007 Second Quarter Results

Revenue and Earnings In-Line with Previously Announced Preliminary Results

REDWOOD CITY, Calif. - January 25, 2007 -- Openwave Systems Inc. (Nasdaq: OPWV), the leading provider of open software products and services for the communications industry, today announced final financial results for its fiscal 2007 second quarter ended December 31, 2006. Revenues for the fiscal second quarter were $84.2 million, compared with $104.5 million in the same quarter in the preceding year and $91.5 million in the prior quarter ended September 30, 2006. The Company reported bookings of $119.7 million in the fiscal 2007 second quarter as compared with $81.4 million in the 2007 first fiscal quarter.

"We are pleased with the strong bookings during the quarter," said David Peterschmidt, president and CEO of Openwave. "In the second half of fiscal 2007, we plan to continue to focus on bookings momentum, new product introductions, sales productivity improvement and tight expense control." On a GAAP basis, net loss for the second fiscal quarter ended December 31, 2006 was $15.8 million, or $0.17 per share, compared to net income of $8.4 million, or $0.11 per share, for the December quarter in the preceding year and a net loss of $24.5 million, or $0.27 per share in the prior quarter.Net loss on a non-GAAP basis, which excludes amortization of intangibles, stock-based compensation, gain on sale of technology, impairment charges, acquisition-related costs and restructuring and related costs, for the second fiscal quarter ended December 31, 2006 was $2.5 million, or $0.03 per diluted share compared with net income of $19.3 million, or $0.22 per fully diluted share, during the December quarter of the prior year and a net loss of $0.5 million, or $0.01 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.

For further analysis of the quarter, you may listen to the replay of the conference call held on January 4, 2007 on Openwave's website at: http://investor.openwave.com/medialist.cfm. Openwave will not be holding a conference call today.

About Openwave
Openwave Systems Inc. (Nasdaq: OPWV) is the leading independent provider of software solutions that ignite mobility for the communications and media industries. Openwave empowers its customers to rapidly transform their business by sparking new revenue streams and market opportunities, building loyal subscriber communities and reducing operational costs. Openwave's broad range of IP-based handset-to-network solutions enable the rapid launch of information, communication and entertainment services across networks and devices and include handset software, content delivery, adaptive messaging, location, music and video services. Openwave is a global company headquartered in Redwood City, California. For more information please visit www.openwave.com

Source: Openwave Systems Inc.