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WALTHAM, Mass. — November 27, 2006 — Oxy Systems, Inc., a leading developer of mobile music and social networking services, today unveiled phling!®, a hosted, mobile music and social networking service. phling! dramatically enhances mobile operator data services by providing their teen and young adult subscribers with an easy way to listen to, discover, and share music stored on their home PCs.

phling! lets mobile operators provide teen and young adult subscribers with a fun and addictive music listening experience that taps into their need to remain connected to their media and friends. Users connect their mobile phone to their home PC over the operator’s cellular network, where they can view and play music tracks and podcasts from their own media collection. They can also connect with others in the phling! community by browsing their profiles, music libraries, and music ratings.

Once members of the phling! community, users can share the music in their libraries with up to six friends. By doing so, these friends can listen to each other’s music. The social networking capabilities of the service help users find others with similar tastes in music and a bulletin board feature lets them read and leave messages for their friends.

Unlike other music community services currently available, phling! is the first one to be completely wireless. With phling!, users no longer need to connect their phones via cable to their PCs to sideload music. Instead, subscribers can listen to their music by wirelessly streaming these files to their handsets. An added benefit of listening to music in this manner is that subscribers no longer need additional storage capability on their handsets. Plus, if a subscriber ever loses their handset, they can easily reconnect their new phone to the phling! service without worrying about losing their music or photo files.

“Most handsets have limited storage capacities, which is a restraining factor for mobile music adoption. phling! addresses this issue by allowing customers to listen to their music by wirelessly streaming these files to their handsets,” says Julien Blin, research analyst in IDC's Wireless and Mobile Communications program. “As the mobile community, mobile music and mobile user-generated content and services markets continue to grow, Oxy Systems is well positioned to take advantage of this anticipated growth through phling!, which combines key features to succeed in those respective markets.”

Currently available as a bundled application for deployment within mobile carrier networks worldwide, phling! encourages the discovery of new music and friends within the phling! community. Since phling! can integrate with operators’ own digital music stores, the service can help drive music sales, while dramatically increasing the average revenue per user (ARPU) and reducing subscriber churn rate.

“A recent report on mobile phone and MP3 usage from Continental Research found that a growing number of consumers are listening to music on their cell phones, challenging the future growth of iPod sales. With online social networking and digital music being two of the most used forms of entertainment technology by teens and young adults, phling! presents mobile operators with a tremendous opportunity to take advantage of this trend” stated Mike Krasner, president and CEO, Oxy Systems, Inc. “phling! pairs these technologies together into a fun mobile service that satisfies the need for teens and young adults to ‘stay connected’ in a highly entertaining, social environment, while driving music download revenue and overall ARPU for carriers."

“The mobile music market is nearing an inflection point and the phling! service is a unique way for consumers to access and share music files,” commented Piper Jaffray Managing Director and Senior Research Analyst Gene Munster. “Additionally, as mobile operators continue to try to find news ways to differentiate their services, phling! provides a compelling new offering.”

For two years, Oxy Systems has conducted in-depth research with panels of mobile users between the age of 16 and 29 to determine their key interests in mobile music and social networking services. Oxy Systems’ executives also worked closely with mobile operators in testing the company’s services to ensure that what is being delivered to the market today meets their needs. Oxy Systems has taken great care to integrate the feedback received from both the carriers and the user panels in what it is making available today in phling!

For further information on phling! and how to make it available to your subscribers, please see: http://www.oxysys.com or email info@oxysys.com.

About Oxy Systems and phling!^®

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