Press Release

Xplore Signs Development Agreement with Microsoft - Xplore to develop computing technology for a rugged Tablet PC

May 21, 2002

Xplore Technologies Corp. a leading international developer, producer and distributor of rugged wireless tablet computer systems announced today it has signed a development agreement with Microsoft Corp. Xplore will work on the development of a rugged Windows-based Tablet PC computer, GeneSys IIITPC which will meet the guidelines for Microsoft’s Tablet PC initiative, as part of an overall technology and research development roadmap. This effort will ensure that Xplore’s GeneSys IIITPC, running Microsoft’s Windows XP Tablet PC edition operating system, is designed and engineered in concert with a network of Microsoft professionals and partners, and capitalizes on the significant investment made by Microsoft on this emerging mobile computing and operating system platform.

"There is a lot of interest among our customers for a rugged Tablet PC," says Alexandra Loeb, Vice President of the Tablet PC Division at Microsoft. "We are impressed by Xplore’s heritage and experience in delivering proven solutions in the pen computing market. Their efforts will ensure that a robust level of functionality is designed into their rugged Tablet PC in order to meet the demands of this exciting market segment."

Xplore will utilize Microsoft’s suite of development tools and utilities, in addition to its significant market research learnings about the Tablet PC initiative. Xplore will also take advantage of Microsoft’s rapidly expanding network of companies developing software for the Tablet PC, that offer specific vertical market and utility software tools, wireless access technologies and other advanced technologies that provide component solutions for the emerging Tablet PC market.

Xplore has developed a family of rugged Tablet computers based on years of design input from specific market customers which has resulted in the creation of a highly durable, powerful, functional and flexible suite of rugged hardware solutions for markets such as Law Enforcement, Warehousing, Fire Safety, EMS, Military, Retail/Distribution, Field Service and Transportation. Xplore customers include The Home Depot, Nokia, Symbol’s worldwide reseller network and hundreds of Public Safety Agencies worldwide.

Xplore’s current family of rugged computers, which is based on a rich heritage in designing and commercializing rugged Pen Tablets, comprise a patented durable design, Ultra Hi Brite TFT and Active Transflective 10.4"-12.1" color screens, Intel Pentium processors, resistive pen/touch digitizers and integrated wireless (WAN and LAN) options. Additional vertical market hardware elements include durable docking stations, backlit keyboards and a range of performance-matched accessories. Xplore’s products are backed by a comprehensive warranty program and are supported by MIL STD 810F testing.

According to Tim Shea, Senior Analyst at Venture Development Corporation ("VDC") who authored a market study published in 2000, "There is a measurable market trend towards more rugged and durable mobile computing devices. Additionally, many vertical market customers are looking towards Tablet form factors with Pen input as the mobile computers of choice. The Tablet form factor provides a highly ergonomic portable or mobile computing device that is easy to use in multiple application situations, yet provides the power and functionality required by today’s software applications and wireless communication technologies".

"By adding Microsoft’s Tablet PC platform and operating system to our expanding suite of new rugged Tablet computers, we have expanded the number of vertical markets and hence, potential customers for our proven and tested technologies," states Michael Ross, Chief Operating Officer at Xplore Technologies. "The integration of true pen input through "ink" capturing, the addition of speech input capabilities and the overall power and flexibility of the Tablet PC operating system and collection of supporting software utilities provides customers with enhanced functionality. We maintain our heritage in engineering and delivering highly rugged and durable pen based computing systems, in ergonomically friendly Tablet style form factors, while capitalizing on the advanced development activities and marketing networks of Microsoft. It is the best of all worlds for our customers. We are pleased to be working with the industry leader in developing and marketing business solution software."

About Xplore Technologies

Xplore Technologies, founded in 1996, is an innovative leader in the rugged pen-based mobile wireless computing industry. Xplore, which is traded on the Toronto Stock Exchange under the symbol TSE:XPL, has offices in Austin Texas, Toronto Canada, and Helsinki Finland. Its rugged GeneSys and Ramline systems incorporate leading-edge technology, created based on years of customer design input. Xplore’s diverse customer base comes from the public safety, retail and wholesale warehousing, utility, military, field service, marine and transportation industries.

http://www.xploretech.com/