Update re: Alternative Strategies for Improving Shareholder Value

As previously announced in its Q2 2010 interim report,

Birdstep engaged an external advisor to explore

alternative strategies for improving shareholder

value, including among other things additional

divestures of non-core investments and businesses.

During this period, such advisor has been in dialogue

with a party who has expressed interest in all of

Birdstep's businesses. This interested party

submitted a non-binding letter of intent on 17

September 2010 (after the market closed in Oslo) to

acquire substantially all of the operating and other

assets of Birdstep for USD 17 million (NOK 103.6

million).

The board convened on 19 September 2010 and

unanimously agreed that such price level does not

reflect the potential values in the company.

So far, the board has not received any bid or

indication of a bid that is on a level that the board

will support and recommend for the shareholders in

Birdstep.

The board will continue looking at strategic

alternatives going forward especially with respect to

divestitures of non-core investments and businesses,

and will keep the market informed about any results or

significant developments as we move forward.

For more information:

Torbjörn Sandberg

CEO

Phone: +46 705 170964

André V. Demarest

CFO

Phone: +46 703 928810

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