Xero Mobile (OTC:XRMB), the revolutionary new advertising funded pre-pay mobile phone operator and XIUS, the telecom division of Megasoft Ltd., a leading global provider of highly specialized OSS solutions to the telecom sector today announced that the innovative patent pending VOISE solution from XIUS, a truly next- generation convergent service delivery platform for MVNOs and Virtual Carriers, has been chosen by XERO Mobile to power the launch and delivery of its paradigm changing mobile phone service in the United States.

Los Angeles based Xero Mobile is both an Advanced MVNO (Mobile Virtual Network Operator) and a media sales organization. Xero is targeted to the college student community and will provide high specification handsets along with a variety of targeted services.

Announcing the deal, G.V. Kumar MD & CEO — Megasoft mentioned “This is a very prestigious win for Megasoft and we are very excited at the opportunity of working with a pioneering organization like Xero Mobile. The agreement is a clear demonstration and validation of the value and attractiveness of our VOISE solution for innovative MVNOs aiming to acquire and support a large subscriber base within aggressive timelines.” Mr. Kumar added that the contract with Xero Mobile is a multi-million multi-year contract and Megasoft will be responsible for the providing a customized and turn-key management of an end-to-end network agnostic VOISE platform for enabling Xero’s mobile launch and would also include supply of several other professional services as the project moves forward.

Commenting on the deal, Peter Lilley, CEO — Xero Mobile, mentioned, “We look forward to working with XIUS and leveraging on their knowledge and experience in the area of authentication, billing, subscriber ownership and interoperability, particularly in the mobile domain. Our partnership with XIUS will enable us to provide relevant and quick responses to the changing needs of the subscribers.”

Added David Levett, CTO — Xero Mobile, “We evaluated several service delivery and MVNE alternatives and chose the VOISE platform for its unique ability to provide service flexibility, pricing flexibility, brand flexibility and customer ownership. XIUS has developed a comprehensive plug-n-play solution that will greatly enhance our capability to rollout innovative customer specific services, enabling us to concentrate on our core business. We expect the VOISE platform will help us to dramatically save on time-to-market while enhancing and enriching the brand experience of our subscribers.”

About XERO Mobile (http://www.xeromobile.com)
Los Angeles based Xero Mobile is both an advanced MVNO (Mobile Virtual Network Operator) and a media sales organization that combines two of the largest and most dynamic markets in the U.S. — mobile phones and advertising. Xero is targeted to the 17.3 million strong college market, and will provide high specification handsets without contract and at notably competitive prices. In return, students will agree to accept a small number of relevant video ads on their handset each day. Each ad provides the student with free mobile airtime.

The launch of Xero Mobile commences in the Fall of 2006 with a focus on college students in over 350 targeted U.S. markets. Prominent national advertisers will be able to send permission based TV-style ads with the accuracy of direct mail, and the accountability of the web — delivered with the intimacy of mobile. The company is publicly traded on the Over-The-Counter Pink Sheets
under the symbol “XRMB”.

About Megasoft (http://www.megasoft.com)
Established in 1994, Megasoft is a transnational Intellectual Property-driven, product-based technology company that focuses on its expertise in the growing Telecom sector. The company has initiated a strategic transition — from a midsized IT services company to a leading domain-led Intellectual Property (IP)-driven technology company. Megasoft is a SEI CMM Level 4 company that operates out of USA, UK, Singapore, Malaysia and Germany, and in Hyderabad and Chennai in India. Megasoft is publicly listed in the Bombay Stock Exchange and the Madras Stock Exchange. Megasoft has a January~December Financial Year. For the fiscal ending December 31, 2005, the revenues stood at Rs. 115 Crore (Rs.85 Crore for full year FY 2004) and profits were Rs. 20 Crore. Megasoft and XIUS India Limited (XIUS — a successful provider of mobile telephony platforms and products) amalgamated in 2004, resulting in a combine that has strong suite of products, applications and technology platforms including deep knowledge and experience to cater to the global telecommunication industry. This means that Megasoft’s Telecom offerings, which were built with global usability and quality, can now be offered to Telecom operators across all continents. XIUS, the telecom division of Megasoft, is a leading global provider of Convergent Billing, Advanced Roaming and Interoperability solutions to Wireless and Wireline Operators, MVNOs, ISPs and other Network Service Providers.