NPLA Inplay Technologies (MM)

InPlay Technologies (NASDAQ: NPLA) today announced that it has entered into a strategic partnership and manufacturing services agreement with a tier 1 electronics manufacturing services (EMS) provider who will become a preferred manufacturing partner for InPlay�s patented MagicPoint� digital computing pen technology. �This relationship brings us credibility in the marketplace and high volume, quality production capability for our MagicPoint pen/digitizer technology,� said Steve Hanson, InPlay Technologies Chairman and CEO. �Our target customers are the major computer OEMs. With a well respected contract manufacturer in place, and a state-of-the-art design, our technology�s advantages offer a viable solution for major tablet PC and convertible notebook programs.� �Our unique digital solution, with intelligence in the pen, can be a driver for the mobile computing market by offering OEM product differentiation and future innovation. This partnership provides a unique advantage for the EMS provider to expand in the computing markets, leveraging on the key OEMs,� Hanson continued. Production of InPlay�s MagicPoint technology through this tier 1 EMS will take place in southern China. InPlay�s MagicPoint technology is the only pen input solution with digital stream communication available today. The analog technology used on most systems today uses an analog communication method with limited expansion capability. The MagicPoint system consists of a digitizer behind the LCD and digital writing pen. InPlay is advancing pen computing technology, using a cordless, active RF digital pen versus the analog pen used with most pen computing systems in the tablet PC market today. With digital signaling technology, the MagicPoint system enables nearly limitless future feature enhancements as the market for pen-input capability expands. �Our goal is to enable active RF pen-input as a standard user interface across all mobile PC devices from tablet PCs to ultra-mobile PCs,� Hanson concluded. �Solidifying this relationship with a tier 1 manufacturing partner is a significant step toward achieving high-volume design wins.� Market research firm IDC sees worldwide tablet PC sales growing from 1.2 million units in 2006 to over 5.6 million by 2010. The ultra-mobile PC product, introduced in 2006, could grow to 7.8 million units by 2011 according to In-Stat. About InPlay Technologies InPlay Technologies develops, markets and licenses proprietary emerging technologies. Working with its licensees and OEM customers, InPlay offers technology solutions that enable innovative designs and improved functionality for electronic products. The company's MagicPoint� technology is the only digital-based pen-input solution for the rapidly growing tablet PC and mobile computing markets. Its Duraswitch� brand of electronic switch technologies couples the friendly tactile feedback of mechanical pushbuttons and rotary dials with the highly reliable, thin profile of membrane switches, making it ideal in a wide range of commercial and industrial applications. InPlay is focused on further commercializing these technologies and seeking additional innovative technologies to enhance its portfolio. Visit www.inplaytechnologies.com for more information. This news release contains certain �forward-looking statements� within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding our estimation of the benefits of this manufacturing partnership, including the potential for new OEM customers, the advantages of our technology over competing technologies and our ability to help drive future growth in the market for our technology and our partners. Risks and uncertainties that could cause results to differ materially from those projected include lack of commercial acceptance of our technologies, general changes in demand in the computer market, changes or delays in orders from OEM customers, technology developments from other suppliers and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2006 as filed with the Securities and Exchange Commission on April 2, 2007. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements.