Techstep ASA — Earnings Release 2010

May 20, 2010

Birdstep continues to deliver growth and improved cash flow

Birdstep continues to deliver growth and improved cash flow

(Oslo, May 20, 2010) Birdstep Technology ASA reported an EBITDA of NOK

-6.9 million in the first quarter of 2010 (-7.7), while revenues grew to

NOK 27.0 million (24.8). The company has significantly strengthened the

EasyConnect and SafeMove product offering and product roadmap to enhance

the growth opportunities in the rapidly developing mobile broadband

market.

- Birdstep reported revenues up 9%, or 19% adjusted for currency

effects, in the first quarter of 2010. In addition, we have been awarded

important EasyConnect contracts, grown the sales pipeline and is in the

process of significantly strengthening our EasyConnect and SafeMove

offerings, says Torbjörn Sandberg, CEO of Birdstep Technology.

Birdstep Technology's first quarter 2010 revenues were NOK 27.0 million

(24.8), with an EBITDA of NOK -6.9 million (-7.7). The cash flow was NOK

-8.2 million, bringing cash and cash equivalents at the end of the

quarter to NOK 47.5 million (69.8).

514 698 new customers activated their USB modems with EasyConnect

software during the quarter, compared to 396 059 activations in the

corresponding quarter last year. In May, the company was awarded a three

year EasyConnect contracts with a leading European operator. For the

initial launch country only, Birdstep Technology estimates the revenue

for the first 2 years to amount to 8 million NOK. In addition, Birdstep

Technology was awarded the upgrade of TDC Group to EasyConnect 2.9 for

all Nordic entities.

- EasyConnect 2.9 was launched February 16 at the Mobile World Congress

in Barcelona and has been very well received by the market and existing

customers are ordering upgrades to the latest release. With the launch

of EasyConnect 3.0 in the third quarter of 2010 and the SafeMove 5.2

early in the fourth quarter, we have a strong product offering coming to

the market this year and beyond, says Sandberg.

Going forward, Birdstep Technology will focus its resources on

EasyConnect and SafeMove. The company will consider exploring financial

alternatives for Raima, Orbyte and the 32% partially owned Aptilo.

Following the reorganization, Birdstep Technology is a pure software

vendor in the mobile broadband market, where the underlying growth

trends continues. At the Birdstep Technology's General Meeting at 09.30

on 20 May, Sandberg will present highlights of the future product

roadmap and the strategic outlook for 2010-2013. See the enclosed

corporate presentation.

- The board of directors has set ambitious internal growth targets to

management and the organisation to reflect their belief that Birdstep is

well positioned to take advantage of the market opportunity associated

with the massive growth of mobile services, says Sandberg.

For further information, please contact:

Alex Gundersen

CFO of Birdstep Technology ASA

+47 41 474107

Alex.Gundersen@birdstep.com

Torbjörn Sandberg

CEO and President of Birdstep Technology ASA

+46 70 5170964

Torbjorn.Sandberg@birdstep.com

About Birdstep

Birdstep Technology ASA is a leading provider of secure and seamless

wireless connectivity software for operators, enterprises and mobile

device manufacturers. EasyConnect offers advanced connection and service

management solutions for network operators and laptop manufacturers.

SafeMove is a mobile VPN solution providing seamless and secure

connectivity to business data for corporations and governments.

Birdstep Technology was founded in 1996 and is since 2002 listed on the

Oslo Stock Exchange under the ticker "BIRD". The company has 100

employees and is headquartered in Oslo, Norway, with competence centres

in Sweden, Finland, UK and the United States. For more information,

visit www.birdstep.com.