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News Release

Fujitsu and ON Technology Announce Strategic Alliance
to Reduce the Cost of IT Management for Retailers

ON's advanced management solution enables Fujitsu customers to remotely manage the full lifecycle of their retail systems infrastructure

Waltham, Mass., and Dallas, Texas (December 17, 2002) - - ON Technology (NASDAQ: ONTC) and Fujitsu Transaction Solutions Inc. have formed a strategic alliance to deliver advanced software deployment and management solutions for retailers in North America. The companies will integrate ON Technology's management solution with Fujitsu's retail hardware and software systems to enable retailers to reduce IT costs and improve service to their customers.

Through the alliance, Fujitsu and ON Technology are also collaborating on joint sales and marketing to the retail market, including a dual presence at upcoming industry trade shows. The companies share several mutual customers in the retail industry, including Staples Inc.

Fujitsu supplies technology lifecycle solutions to retailers and offers point-of-sale (POS) hardware, software and infrastructure management services and support. ON Technology provides enterprise infrastructure management software that enables IT organizations and service providers to manage the full lifecycle of their remote systems over large-scale corporate networks and the Internet, from centralized management consoles.

"In today's highly competitive retail environment, retailers are looking for open and scalable technologies that enhance operational efficiencies and deliver rapid return-on-investment while optimizing their ability to respond to constantly changing market conditions," said Paula Rosenblum, research director, Retail Industry Service, AMR Research Inc. "The combination of ON Technology's industry-leading management solutions and Fujitsu's proven hardware, software and services creates a formidable force that will bring significant competitive advantage to retail enterprises."

ON Technology's automated software management system eliminates the need to send skilled IT technicians to remote stores to perform critical tasks such as rolling out new store devices, deploying new operating systems, installing or updating applications, transferring store data, configuring security patches or rebuilding malfunctioning machines. Automating these processes increases reliability and reduces downtime for retailers, enabling them to improve service to their customers.

"As experts in the retail market, with a vast installed base of POS systems, Fujitsu is the ideal partner to deliver our solution to retailers. Their approach to infrastructure management closely parallels our own vision of lowering IT costs by managing retail IT assets across their entire lifecycle," said Robert L. Doretti, ON Technology chairman, president and CEO. "In top-tier retail operations, automating these essential functions with our solution can double or triple IT productivity compared to performing these tasks manually. It also frees scarce IT resources so they can focus on adding value in other areas, such as loyalty systems or other customer-focused strategies."

"ON Technology's unique expertise can help retailers relentlessly drive cost out of their IT operations and increase the effectiveness of their technology, " said Keith McNamara, senior vice president, general merchandise industry for Fujitsu. "By automating processes that are now done manually, retailers will be free to concentrate on serving their customers. This is what we mean by 'differentiated business performance.' ON Technology's track record with mutual customers such as Staples make this alliance a natural fit."

Joint sales and marketing activities between the two companies have already begun. ON Technology will demonstrate unattended deployment of Fujitsu's GlobalSTORE software at the National Retail Federation's 2003 conference Jan. 13-15, Fujitsu booth 1321, Jacob Javits Convention Center, New York.

About Fujitsu Transaction Solutions Inc.ON Technology Corporation
Fujitsu Transaction Solutions Inc., headquartered in Dallas, is the IT "lifecycle solutions" provider for retailing technologies. The wholly owned subsidiary of Fujitsu Limited (TSE: 6702) helps customers relentlessly drive costs out of retail operations and improve business performance by optimizing how technology assets are managed throughout the life cycle, from evaluation and acquisition to integration, implementation, service, support and replacement. Fujitsu's portfolio includes infrastructure management services, point-of-sale hardware and software, handheld devices and Web-enabled automated-teller machines. The company has operated in North America for more than 30 years and has more than 1,000 employees and 25 offices in the U.S., Canada and the Caribbean. It serves customers such as Ahold, Albertson's, Best Buy, Frito-Lay, Nordstrom, REI, Sears, Staples and The TJX Companies, among others.

ON Technology Corporation
ON Technology empowers IT organizations and service providers to manage the full lifecycle of their computing systems over large-scale corporate networks. Our solutions are used to rapidly and reliably deploy critical applications, operating systems, and content to desktops, mobile PCs, handhelds, servers, retail point-of-sale (POS) terminals and banking workstations. Our customers leverage our solutions to significantly reduce IT costs, improve availability and reliability of business-critical applications, and enhance both IT and end-user productivity. ON's management solutions have been chosen by over 750 enterprises worldwide to manage over 1,000,000 networked computer systems. For more information visit ON Technology's web site at www.on.com or call 800-767-6638.

About ON Technology Corporation
ON Technology empowers IT organizations and service providers to manage the full lifecycle of their computing systems over large-scale corporate networks. Our solutions are used to rapidly and reliably deploy critical applications, operating systems, and content to desktops, mobile PCs, handhelds, servers, retail point-of-sale (POS) terminals and banking workstations. Our customers leverage our solutions to significantly reduce IT costs, improve availability and reliability of business-critical applications, and enhance both IT and end-user productivity. ON’s management solution has been chosen by more than 1,000 enterprises worldwide to manage in excess of 1.2 million networked computer systems. For more information visit ON Technology’s Web site at www.on.com or call 800-767-6638.

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ON Technology, ON Command, and ON Command CCM are registered trademarks, and the ON logo and ON iCommand are trademarks of ON Technology Corporation. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and other countries. All other brand names and trademarks are properties of their respective owners.

The statements in this press release that relate to ON Technology’s future plans, events and performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve a number of risks and uncertainties. Some of the important factors that could cause actual results to differ materially from those indicated by the forward-looking statements are general economic conditions, including the current weakness in the global economy, demand for the Company’s products and services, performance of the Company’s direct and indirect distribution channels, competitive pressures, market acceptance of the Company’s new products and technologies, and the risk factors detailed from time to time in ON Technology’s periodic reports filed with the Securities and Exchange Commission, including without limitation the Company’s Quarterly Report on Form 10-Q for the third quarter of 2003 filed in November 2003. Actual results and performance may differ materially due to these and other factors. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. ON Technology undertakes no obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release that may reflect events or circumstances occurring after the date of this press release.


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