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By Chris De Herrera 
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ParaGraph announces a development, support and management agreement with PhatWare for CalliGrapher & PenOffice

San Jose, Calif. - May 16, 2001 -- ParaGraph, a division of Vadem, and PhatWare Corp. today announced that PhatWare, maker of a wide range of software products for mobile and desktop computers, including the award-winning mobile organizer HPC Notes (CELair Pocket Perfection Award, Foxpop Application of the Year 2000), will provide support and development for ParaGraph's CalliGrapher® and PenOfficeT line of products.

CalliGrapher is an award-winning handwriting recognition product (Forbes' Best of the Breed, PCWeek and Byte Best of Comdex'97, CEcity Choice Award) that supports Windows CE.  PenOffice integrates the CalliGrapher handwriting recognition engine with document annotation and drawing features to create an integrated package for desktop Windows® operating systems.

CalliGrapher is a "universal" recognizer that understands how people normally write -- natural cursive, print, and mixed cursive and print handwriting. Based on fuzzy logic and neural network techniques, it recognizes dictionary and non-dictionary words and arbitrary symbol sequences. CalliGrapher is user-independent, can be used immediately without training, and does not require users to memorize special symbols or change their writing style.

PhatWare Corp. will manage the development and distribution of future versions of CalliGrapher and PenOffice and provide technical support to new customers.  New versions of CalliGrapher (6.0) and PenOffice (2.0) are scheduled to be released later this year.  PhatWare will offer upgrade discounts to all existing ParaGraph customers.  Information on new versions and upgrades will be available on www.paragraph.com shortly.

Stan Miasnikov, founder and president of PhatWare Corp. said: "PhatWare is one of the first companies to develop software for Windows-powered mobile computers, and I am certain that our expertise will bring a new spirit to the CalliGrapher and PenOffice product lines. I am very pleased that PhatWare will continue to expand this great technology and continue delivering it to mobile computing professionals."

"ParaGraph is pleased to have PhatWare's experience and skill to provide CalliGrapher and PenOffice with the expertise to advance to the next level," said Barry Swenson, General Manager of ParaGraph.

About PhatWare
PhatWare Corporation is a leading provider of easy-to-use, powerful software products and consulting services, including award winning HPC Notes, for the mobile and desktop computing marketplace, founded in 1997. For more information about PhatWare products, please visit the Web site at www.phatware.com.

About ParaGraph
ParaGraph, a division of Vadem, develops and markets pen software products and technologies including the award-winning CalliGrapher handwriting recognition software (voted Best of Comdex by PC Week and Byte, Best of Breed by Forbes).  For more information about ParaGraph products, please visit the Web site at www.paragraph.com.

PhatWare and HPC Notes are either a registered trademark or a trademark of PhatWare Corp. Vadem, ParaGraph, PenOffice, the ParaGraph logo, and Write Naturally are trademarks or registered trademarks of Vadem. CalliGrapher is a trademark of Microsoft Corporation.  All other registered trademarks or trademarks are the property of their respective owners.

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