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.