INPC Inphonic (MM)

Brightstar Corp., a global leader in customized distribution and supply chain solutions for the wireless industry, and InPhonic, Inc. (NASDAQ:INPC), a leading online seller of wireless services and products, today announced a letter of intent to explore a new strategic alliance. There are three principal components of the relationship: Brightstar would acquire the distribution, inventory and fulfillment assets of InPhonic and become InPhonic�s exclusive provider of hardware (wireless handsets, SIM cards and accessories), direct-to-consumer distribution, on-hand inventory, value added customization and logistics. Brightstar will make a $5 million equity investment in InPhonic representing approximately 2.5% of InPhonic�s outstanding shares subject to the execution of definitive documents. Brightstar will leverage InPhonic�s online activation and enablement platform for its existing consumer businesses. Currently, Brightstar serves approximately 11,000 points of sale in the United States with some of the most recognized retail store brands and approximately 160,000 points of sale internationally. It is expected that the terms of the strategic alliance will encompass collaboration across a number of functional areas and would provide InPhonic benefits in three key areas � improved cash flows due to outsourced inventory management, enhanced margins resulting from hardware procurement and significant growth opportunities in a new marketing relationship with Brightstar and its vast domestic and international sales channels. As a component of this new relationship, Brightstar is also eligible to earn up to 250,000 performance-based warrants for the acquisition of new partners and customers for InPhonic. �This strategic partnership with Brightstar will allow us to focus on our core competencies as the online wireless leader in customer acquisition. This new alliance would provide an initial cash infusion, as well as a significant positive impact to InPhonic�s working capital and cash flow. We believe the combination of InPhonic�s activation and �Direct-to-You� retail consumer platform with Brightstar�s operational excellence in fulfillment and logistics present significant growth potential to both companies,� said David A. Steinberg, InPhonic�s Chairman and CEO. �By combining our efforts, the companies can bring a powerful and unique value proposition to Brightstar�s existing customers, as well as expanded capabilities and improved fulfillment services for our distribution channels.� �The relationship with InPhonic represents a mutually beneficial situation for both of our organizations. It allows InPhonic to concentrate on its core business, while Brightstar does what it does best: provide supply chain management that is customized to meet customer needs,� said Marcelo Claure, Brightstar�s founder, president and CEO. �We are extremely pleased to be investing in and working with InPhonic, a leader in the online wireless industry - deepening our relationship and optimizing their supply chain and distribution needs.� The companies expect to sign a definitive agreement with respect to a strategic alliance in the third quarter of 2007. About Brightstar Brightstar Corp. is a global leader in customized distribution and supply chain solutions for the wireless industry. Headquartered in Miami, FL, Brightstar operates sales, distribution and manufacturing facilities in 49 countries on six continents. The company provides solutions to more than 30,000 network operators, MVNOs, retailers, resellers and independent agents around the world, and also represents the world�s leading wireless manufacturers. In 2006, Brightstar generated $3.6 billion in revenue. For more information, visit www.brightstarcorp.com. About InPhonic Headquartered in Washington, D.C., InPhonic, Inc. (NASDAQ:INPC) is a leading online seller of wireless services and products. InPhonic sells these services and devices, and provides world-class customer service through websites that it creates and manages for online businesses, national retailers, member-based organizations and associations under their own brands. InPhonic also operates Wirefly (www.wirefly.com), a leading one-stop comparison mobile phones and wireless plans shopping site that has been awarded "Best of the Web" by Forbes magazine and "Best in Overall Customer Experience" by Keynote Performance Systems. InPhonic also delivers a full range of MVNO and mobility solutions to enterprise clients through its Mobile Virtual Network Enablement (MVNE) platform. Among many awards in its history, InPhonic holds the distinction as #1 Company of the Year on the INC. 500 for 2004. For more information on the company, its products and services, visit the InPhonic Corporate Web site at www.inphonic.com. Click here to join our email alert list: http://www.b2i.us/irpass.asp?BzID=1461&to=ea&s=0 "Safe Harbor" Statement - Under the Private Securities Litigation Reform Act of 1995, this press release may contain forward-looking statements that involve risks and uncertainties. Important factors, which could cause actual operating results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by the Company. This press release and statements are current as of the date of the individual announcements and the Company undertakes no obligation to publicly release any revisions to any forward-looking statement to reflect events or circumstances after the date thereof or to reflect the occurrence of unanticipated events. Furthermore, we can provide no assurance that a definitive agreement will be signed with Brightstar or that the closing will occur.