Court Rules to Impose Injunction on bcgi and other Defendants in Patent Litigation

19 October 2005

Boston Communications
Group, Inc. (Nasdaq: BCGI) reiterated today that it will file an appeal in its
ongoing patent infringement litigation with Freedom Wireless, after a federal
judge granted Freedom Wireless' request for injunctive relief. The U.S.
District Court (the "Court") denied Freedom Wireless' motion to award
attorneys fees and enhanced damages awarded by the jury, including treble
damages. However, the Court granted Freedom Wireless' request to add
prejudgment interest and other costs totaling $20.1 million, bringing the
total joint and several liability to $148.1 million.
"Our fight is far from over," said E.Y. Snowden, President and CEO of
bcgi. "We will bring our appeal to the U.S. Court of Appeals for the Federal
Circuit, which has nationwide jurisdiction over patent issues and is
especially skilled at reviewing complex patent cases, where we hope to
prevail."
bcgi continues to assert that it does not infringe the Freedom Wireless
patents, and believes the patents are invalid in light of prior art and other
reasons. In addition, the Company believes that the size of the award bears
no relationship to a reasonable royalty that bcgi or any company would have
paid for a license of the patents.

Injunctive Relief
The Court enjoined bcgi from offering three implementations of its U.S.
service bureau, multi-frequency (MF), common channel signaling system seven
(SS7), and pre-intelligent network (pre-IN), to any wireless carrier other
than a licensee of Freedom Wireless, subject to a 90-day grace period. During
the 90-day grace period, the defendants would be required to pay Freedom
Wireless a license fee equivalent to 2.5 cents per minute of use. On average,
bcgi currently charges its customers approximately 1 cent per minute of use,
which includes a full suite of real-time billing, rating and support services
using bcgi's state-of-the-art proprietary software and network.
In order to mitigate the severe impact of this injunction that was granted
by the Court, bcgi will file an emergency motion to request a stay of the
injunction pending appeal with the U.S. District Court. If the stay is denied
by the District Court, bcgi will immediately appeal that decision to the U.S.
Court of Appeals for the Federal Circuit and seek a stay of the injunction
while the appeal of the judgment is pending. The request for a stay of the
injunction would ask that bcgi be allowed to continue to serve carriers during
the appeals process.
If left standing, and applied broadly to all of bcgi's customers, the
injunction would prohibit bcgi from providing its prepaid services to carriers
which service millions of individuals -- many of whom due to income or age
would otherwise not have access to wireless service. The injunction as
granted would cause irreparable harm to bcgi's business as it applies to
approximately 400,000 Cingular Wireless prepaid subscribers currently served
by bcgi's prepaid wireless platform, as well as approximately 2.7 million
additional prepaid subscribers of other carriers serviced by bcgi,
representing approximately 70% of bcgi's total revenue as of June 30, 2005.

Appeal Process and Appeal Bonds
The defendants will appeal the Court's overall judgment in the lawsuit to
the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. The
appeal process could last twelve to eighteen months, or longer. In order to
stay execution of the judgment pending appeal, the defendants have posted
appeal bonds totaling $141 million in security to cover the original judgment
plus 10%.
As of June 30, 2005, based on managements' assessment of the potential
outcomes of the case at that time and in accordance with FAS 5 and FIN 14, the
Company accrued an estimated loss of $24.0 million with respect to the Freedom
Wireless judgment, excluding additional legal charges, which are expensed as
incurred. The Company is in the process of reassessing the adequacy of this
accrual in conjunction with its third quarter financial results.

About Boston Communications Group, Inc.
Boston Communications Group, Inc. (Nasdaq: BCGI) develops products and
services that enable wireless operators to fully realize the potential of
their networks. bcgi's access management, billing, payment and network
solutions help operators rapidly deploy and manage innovative voice and data
services for subscribers. Available as licensed products and fully managed
services, bcgi's solutions power carriers and enable MVNOs with market-leading
implementations of prepaid wireless, postpaid billing, wireless account
funding and m-commerce. bcgi was founded in 1988. For more information, visit
http://www.bcgi.net.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains, in addition to historical information,
forward-looking statements that involve risks and uncertainties, including
statements regarding the Company's expectations that the Company will appeal
the judgment and the injunction, statements that the Company's proprietary
prepaid technology does not infringe the Freedom Wireless patents and that
such patents are invalid due to prior art an other reasons, and the Company's
prospects to obtain a favorable judgment on appeals and the timing of the
appeals process. Such forward-looking statements are based on management's
current expectations and are subject to a number of uncertainties and risks
that could cause actual results to differ materially from those described in
the forward-looking statements. Among the important factors that would cause
actual results to differ materially from those indicated by such forward-
looking statements include the Company seeking protection under Chapter 11 of
the Bankruptcy Code, additional costs to defend additional lawsuits and the
anticipated appeal, the inability of the Company to attract and retain both
existing and prospective customers and employees, the Company being unable to
provide the real-time prepaid wireless service bureau as currently offered in
the United States, the Company being unable to stay the injunction, the
inability of the Company to negotiate a reasonable license from Freedom
Wireless, the inability of the Company to post a bond or other security to
stay execution of the judgment, the ability to market and sell new solutions
to wireless operators, the loss of a customer or certain of their markets, a
change in the revenues from the Company's major customers including Nextel
Communications, Verizon Wireless, and Cingular Wireless which represented 37%,
22% and 16%, respectively, of the Company's consolidated revenues for the
three months ended June 30, 2005, as well as the other factors that may affect
future operating results detailed in bcgi's quarterly report on Form 10-Q for
the three months ended June 30, 2005 filed with the Securities and Exchange
Commission.