Benefon Hires Senior Chinese Executive to Spearhead Local Market Launch

Benefon Oyj (HEX:BNFSV) the leading provider of mobile GPS
navigation solutions and location based software, today announced its
formal entry into the rapidly growing and dynamic Chinese market with
the opening of an office in Shanghai.

Jeff Lin, a seasoned location technologies leader has been
recruited as Managing Director to spearhead the company's local
activities. Mr. Lin, a digital map and technology veteran who guided
NAVTEQ's entry into China, will use his experience to leverage both
product development and distribution in the region. Before joining
Benefon, Mr. Lin was General Manager of Nav2 (Shanghai) Co., Ltd, a
Joint Venture Company between NAVTEQ and China NavInfo.

The creation of the new Benefon China Division is in response to
strong interest on the part of consumer and business enterprise users
in the company's offerings for location enabled mobile devices and
software solutions. The company's goal is to be the pre-eminent
provider of location based mobile technology in China. Priorities for
the new division will include localizing the Twig product line,
development of a personal navigation product line for vehicles, and
cultivating local software content.

Tomi Raita, President of Benefon, said, "The establishment of a
China division strategically reinforces our commitment to driving the
evolution of China's mobile location industry. Having a China based
operation will not only enable us to fully leverage our resources and
expertise in wireless solutions, but also strengthen our capability to
offer industry-leading products for our customers in China."

Peter Bamford, Chairman of Benefon, noted, "With an estimated 500
million mobile phone users and 100 million regular Internet users in
China, we see the potential market for our products there to surpass
that of Europe and the U.S. in three to five years. Based on all of
the factors we felt would make us successful, we determined that this
is the time and the place with the strongest opportunity. We expect
the new division to represent a significant portion of revenues in the
coming years."

About Benefon

Benefon is a leader in GSM+GPS mobile telematics equipment and
solutions. Professional and consumer applications include personal
navigation, personal safety, field and workflow management, and asset
tracking. Headquartered in Salo, Finland, Benefon has designed and
manufactured mobile equipment for cellular systems since 1988.
www.benefon.com