Socket Mobile, Inc. (SCKT)

Socket Mobile Reports Q2 2007 Revenue of $6.3 Million, up 14% Sequentially

NEWARK, CA -- July 24, 2007 -- Socket Communications, Inc. (NASDAQ: SCKT), dba Socket Mobile, Inc., an innovative provider of mobile productivity products, today reported financial results for the 2007 second quarter ended June 30, 2007.

Revenue for the second quarter of 2007 was $6.3 million, compared to revenue of $5.5 million in the immediately preceding quarter, and $6.9 million for the same quarter a year ago. Net loss for the second quarter was $745,000, or a loss of $0.02 per share, compared to a net loss applicable to common stockholders of $448,000, or a loss of $0.01 per share, in the second quarter of 2006 and a net loss of $1.3 million, or a loss of $0.04 per share, in the immediately preceding quarter. The portion of the net loss attributable to stock option expensing in the second quarter of 2007 was $253,000, or $0.01 per share, compared to $311,000, or $0.01 per share, in the second quarter of 2006 and $282,000, or $0.01 per share, in the immediately preceding quarter. Cash and cash equivalents were $5.9 million at June 30, 2007, compared to $5.2 million at March 31, 2007 and $7.3 million at June 30, 2006.

Kevin Mills, president and chief executive officer, commented, "We are pleased with the quarter-over-quarter increase in revenue, which was primarily driven by an increase in our OEM business. During the quarter we began shipping our new SoMo 650 handheld computer. The initial feedback from our customers has been excellent. We entered the third quarter as a systems company and are now focused on ramping up production and building increased awareness and demand for the SoMo, which we expect to be a significant contributor to revenue in the second half of the year. We are now a one-stop supplier of mobile computing hardware systems, offering a handheld mobile computer specifically designed for enterprise use and an extensive portfolio of essential mobile data collection and networking peripherals that enable mobile automation and productivity increases for small to medium deployments. Socket Mobile is dedicated to working with application providers to supply complete business mobility solutions. Consequently, we believe we are well positioned to be a leading supplier of business mobility systems and capitalize on the expanding opportunity that we see in the marketplace."

For the six months ended June 30, 2007, revenue was $11.8 million, compared to $13.6 million in the year ago period. Net loss applicable to common stockholders was $2.0 million, or a loss of $0.06 per share, compared to a net loss of $828,000, or a loss of $0.03 per share for the same period one year ago. Included in the 2007 net loss were expenses relating to the expensing of stock options as required by Financial Accounting Standard 123(R) of $535,000 ($0.02 per share) for the six months ended June 30, 2007, compared to $636,000 ($0.02 per share) for the six months ended June 30, 2006.

Conference Call

Management of Socket will hold a conference call and web cast today at 2 P.M. PDT to discuss the quarterly results and outlook for the future. The dial-in number to access the call is (877) 407-8033 from within the U.S. or (201) 689-8033 from international locations. A replay will be available via telephone for a week following the call at (877) 660-6853 from within the U.S., or (201) 612-7415 from international locations. Access code for the replay is 286# followed by conference ID 243705#. The call will also be carried live and available via replay through a link on Socket's website at www.socketmobile.com and a transcript will be posted within a few days of the call.

About Socket Mobile

Socket Mobile makes mobility computing and productivity work. The company is a one-stop supplier of mobile computing hardware systems, offering a handheld mobile computer specifically designed for enterprise use and an extensive portfolio of essential mobile data collection and networking peripherals that enable mobile automation and productivity increases for small to medium deployments. The company also offers OEM partner solutions and software development programs. Socket is headquartered in Newark, Calif. and can be reached at 510-933-3000 or www.socketmobile.com.

Socket is a registered trademark of Socket Communications, Inc., dba Socket Mobile, Inc. All other trademarks and trade names contained herein may be those of their respective owners. © 2007, Socket Communications, Inc., dba Socket Mobile, Inc. All rights reserved.