HI and Esmertec K.K. Partner to Integrate MascotCapsule(R) on Esmertec's Jbed(TM) Java(TM) Virtual Machine Platform

Enabling High-Quality 3D Game-Playing Experience on Mass-Market Handsets.

Esmertec K.K., the exclusive reseller of Esmertec AG's (SWX:ESMN)
Java solutions, and HI CORPORATION announced today that HI's 3D
rendering engine MascotCapsule V3 and V4 have been integrated on
Esmertec's Jbed Java platform by Esmertec K.K. The integration
provides game developers a powerful platform for creating and
deploying high-quality 3D games on a broad range of mobile handsets
ensuring a richer gaming experience for consumers, and generating
additional revenue for operators, game publishers and handset
manufacturers.

Jbed is Esmertec AG's best-in-class Java Virtual Machine platform
for mobile handsets recognized by major handset manufacturers
worldwide and already shipped in over 120 million mobile handsets.
MascotCapsule is a de-facto standard 3D rendering engine in Japan and
abroad designed for creating console-quality, high-speed 3D games on
mass-market mobile handsets. The MascotCapsule series overall has been
shipped with over 230 million handsets worldwide as of the end of
December 2006. V3 and its Java API, com.mascotcapsule have been used
to develop hundreds of mobile games worldwide. The latest release V4
is fully compliant with the Mobile 3D Graphics API for Java ME
(JSR184) to exploit the power of hardware acceleration.

"As Java is becoming a very popular technology for developing 3D
content for mobile handsets, the partnership with Esmertec K.K. will
play a pivotal role for us," says Kazuo Kawabata, president and CEO of
HI. "We look forward to a strong business relationship with Esmertec."

Naoki Iizuka, President of Esmertec K.K. comments, "We are exited
to collaborate with HI. By integrating MascotCapsule at the
high-performance Jbed platform, we are able to offer a unique platform
which enables our customers to overcome today's mobile gaming barriers
of fragmentation, time-to-market and high development costs."

About Esmertec K.K

Esmertec K.K. is the exclusive reseller of Esmertec Mobile and
Multimedia software products in Japan. Esmertec K.K. offers a wide
range of supports from consultation, design and development to the
test phase with their rich software solutions for embedded devices.

About Esmertec AG

Esmertec is a focused provider of software and services to
communications device manufacturers and mobile telecom operators. The
company provides software platforms that enable the deployment of
content and applications in devices and over servers. Customers
include mobile telecom operators and manufacturers of mobile handsets,
set-top boxes and interactive televisions. Esmertec's software and
service capabilities excel with its reliability as well as fast and
local execution. Founded in 1999, Esmertec is headquartered in
Zurich-Switzerland with subsidiaries in China, France, South Korea,
and the USA, and offices in Taiwan and the UK. Since 2005, Esmertec
has been listed on the SWX Swiss Exchange (ESMN). www.esmertec.com

About HI CORPORATION

Established in 1989, HI is a leading developer and supplier of
middleware for embedded devices. The company's flagship product
"MascotCapsule", which is a real-time 3D rendering engine, has been
adopted by Japan's four carriers as well as carriers in the US, Korea,
and China. Major Japanese and overseas handset manufacturers have
global license with HI. For more information, please visit
www.hicorp.co.jp