Jean-Claude Martinez Confirmed as CEO of Esmertec; Senior Management Team Announces Measures

Esmertec(TM) (SWX: ESMN), a leading provider of
world-class software solutions and services for the telecommunication,
interactive multimedia and consumer electronics markets, is pleased to
announce that the Board of Directors has confirmed the appointment of
Jean-Claude Martinez as CEO of Esmertec. Since his appointment as
interim CEO in May 2006, Mr. Martinez has organized his management
team in order to achieve key objectives: improve Esmertec's
operational performance and position the company more aggressively in
its targeted markets.
Jean-Claude Martinez has been an integral part of Esmertec since
he joined the Company in June 2002 as Senior Vice President of Sales.
In March 2004, he was appointed Chief Operating Officer, and from the
end of 2005 until mid-May 2006, he focused on growing the business of
the Mobile Operator Division worldwide. Hans-Ulrich Muller, Vice
Chairman of Esmertec's Board of Directors, comments, "Jean-Claude has
over 25 years of experience in the IT and telecommunications industry
and is a hands-on manager who works closely with his team. The Board
is confident that he will lead Esmertec back to its growth path."
Reporting to Jean-Claude Martinez are Georges Boulloy as Chief
Product Officer, Deborah Choate as Chief Financial Officer, Sylvie
Vollet as General Counsel and VP of Human Resources, and Jean-Luc
Gianduzzo as Executive Vice President (EVP) of Global Services.
The senior management team has taken the following actions to
improve operational efficiencies:
Global sales and service organization: This organization is now
structured into a group focusing on sales and a group on services,
thus removing one layer of management. The Services Group is
responsible for customer software and engineering projects, customer
support, mobile operator services, and specialized outsourcing
services for the mobile industry. This group will be led by Jean-Luc
Gianduzzo, EVP of Global Services, who joined Esmertec on June 1,
2006.
Mr. Gianduzzo has over 16 years of international experience in
business development and marketing of high-tech solutions and
services, and has been based in Switzerland for the past 10 years.
Prior to Esmertec, Mr. Gianduzzo was CEO at NEXThink, and has held
senior business development positions at Hewlett Packard and Cisco
Systems Europe.
Following the disappointing sales performance and the
restructuring of the sales and service organization, Billy Crotty, EVP
Sales and Operations Worldwide, left Esmertec on June 30, 2006.
Esmertec is presently recruiting the EVP of Sales to lead the Sales
Group, and Jean-Claude Martinez will manage this position ad interim.
Cost reductions: Management has decided to close down Esmertec's
subsidiary in Denmark and reduce significantly the operations in
Japan. The company has assigned resources from other Esmertec's
offices and in Japan to continue supporting the products and customers
in these regions.
Through the restructuring and other cost saving actions, Esmertec
expects to reduce its operating expenses by 15 to 20% from the current
run rate, including investments in product development. The management
expects to benefit from the full impact of the reduced costs beginning
with the fourth quarter of 2006. Pre-tax restructuring cash expenses,
excluding any impact of impairment losses on intangible assets, are
estimated to be in the range of US$2 million to US$2.5 million, and
Esmertec expects to record most of the restructuring costs in the 2006
first half-year results.
Esmertec will continue to invest in developing innovative
products, expanding its Java-based product portfolio and increasing
its product offering to mobile operators through its product
development operations in China, France, Switzerland, and in the UK.
The Company will host a conference call in English this afternoon
at 1500hrs CET. Details on how to participate are posted on the
"Investors/IR Agenda" section of www.esmertec.com. Financial results
for the six months ending June 30, 2006 will be announced by press
release at 0700hrs CET on August 30, 2006, and presented at a
media/analyst conference at 1000hrs CET in Zurich/Switzerland.

This communication contains forward-looking statements based on
current expectations and assumptions of the company's management only,
and involve certain risks and uncertainties. The forward-looking
statements contained herein could be substantially impacted by risks
and influences that are not foreseeable at present, so that actual
results may vary materially from those anticipated, expected, or
projected. Esmertec disclaims any intention or obligation to update
and revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

About Esmertec

Esmertec is a leading provider of world-class software solutions
and services for telecommunication, interactive multimedia, and
consumer electronics markets. Engineered for smallness and mass
consumption, Esmertec's wireless Java ME solutions and mobile
applications are developed to extract maximum performance from
hardware environments. Esmertec Cellicium's premier mobile browsing
solutions, applications and services are designed to bring interactive
mobile services to mobile operators. Founded in 1999, Esmertec is a
global company headquartered in Zurich-Switzerland with subsidiaries
located in China, France, Japan, South Korea, and the USA, and
representative offices in Taiwan, South Korea and in the UK.
www.esmertec.com

Esmertec and OSVM are trademarks of Esmertec AG.