Geoworks and Telecom Finland Conclude Agreement

Geoworks and Telecom Finland, Ltd. Conclude Agreement to Offer Value Added Solutions for Mobile Professionals

First Product Provides Remote Data Back Up for Users of Smart Phones

ALAMEDA, Calif. May 7, 1997 - Continuing its goal of providing value-added solutions for mobile professionals, Geoworks (NASDAQ:GWRX), a leading provider of smart phone software solutions and developer of the GEOS operating system, today announced an agreement with Telecom Finland, Ltd. to provide users of smart phones with a secure system of backing up important data residing on their devices. The system will work on a variety of GSM-based smart phones, and will enable Telecom Finland, Ltd. smart phone users to wirelessly back up data anytime, anywhere.

Telecom Finland, Ltd. is the first European GSM cellular operator to announce an alliance with Geoworks. This new collaboration of the two companies will serve as the first of several planned additional opportunities to provide joint products and services to Telecom Finland's mobile customers.

``Due to the expected proliferation of smart phones and other Internet-ready handheld devices, we anticipate a strong demand from our mobile customers who will require an easy, secure method of protecting critical data,'' said Kari Rantanen, Deputy Director of Services and Products for Telecom Finland Mobile. ``With Geoworks' expertise and vision for the emerging smart phone market, we are pleased that we can work together to deliver valuable backup solutions to our customers.''

Telecom Finland, Ltd. is the leading operator in the Finnish market, holding more than 50% market share of all telecommunications and more than 62% of the corporate communications market. Additionally, more than 30% of the Finnish population uses cellular phones.

International Data Corp. believes the growing market for Internet-ready smart handheld devices will experience a 76.4% compounded annual growth rate between 1997 to 2001. ``With the growth of Internet-ready handhelds, there is a need for end users to store and retrieve data from a smart phone or another type of handheld device,'' said Diana Hwang, senior industry analyst for market research firm IDC.

Smart phones integrate voice with additional communications features such as e-mail, paging, facsimile, and Internet access to online information and services. The first GEOS-based smart phone, the Nokia 9000 Communicator, is currently available in 30 countries, and is expected to be sold in the United States in the second half of 1997.

Safe and continuous data backup is critical for users who typically store valuable information on their mobile devices. The service can be configured to back up data automatically, making it transparent to users.

``This collaboration between our two companies will create a valuable offering for users of GSM smart phones who want to safeguard important personal information such as their email, faxes, appointment calendars and address books,'' said Gordon Mayer, president and CEO of Geoworks. ``We consider Telecom Finland, Ltd. to be the bellwether of technology innovations. We are pleased to work with them to provide this service to their customers.''

In total, the worldwide market for smart phones is expected to reach $2 billion by the year 2000, according to research firm Mobile Insights, with the U.S. market expected to develop in 1997 as digital-cellular networks are launched and smart phones become available.

About Geoworks
Based in Alameda, California, Geoworks is a leading software provider for the cellular industry and manufacturers of mobile communicating devices, including smart phones. The company has licensed its GEOS operating system to leading manufacturers such as Nokia, Ericsson, NEC, Toshiba Corporation, Hewlett-Packard Company, Brother International Corp. and Canon Business Machines. In addition, the company intends to work with content and services providers, and international cellular operators. For additional information on Geoworks and the GEOS operating system, contact Geoworks on the World Wide Web at http://www.geoworks.com .

About Telecom Finland Ltd.
Telecom Finland, Ltd. is Finland's leading telecommunications company and a forerunner in the development and production of intelligent network-based voice and value-added services. The company offers its customers and partners expertise covering a wide product range including all areas of fixed and mobile telephony, data communication and networked multimedia. It is fully-owned by the Finnish state, has a workforce of about 7,500 and had an annual turnover of about FIM 6.4 billion in 1996. Additional information on Telecom Finland Ltd. is available at: http://www.tfi.net

In keeping with U.S. law, Geoworks notes that this press release includes forward-looking statements, including third-party estimates concerning the demand for smart phones and the growth of the smart phone market, the expected availability and proliferation of smart phone products in the United States and elsewhere, and the acceptance of the product by Telecom Finland, Ltd. customers. Actual results may vary significantly due to various risks and uncertainties. Those include, but are not limited to, the following: i) the smart communicator market may not emerge to the degree or in the timing anticipated; and ii) new technologies are inherently subject to development, timing and consumer acceptance risks. Additional information is available in the Risk Factors and Business discussions in the Company's Forms 10-K, 10-Q and other filings available from the Company or from the Securities and Exchange Commission.