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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000944075-04-000017.txt : 20040628
<SEC-HEADER>0000944075-04-000017.hdr.sgml : 20040628
<ACCEPTANCE-DATETIME>20040628161239
ACCESSION NUMBER:		0000944075-04-000017
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040628

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SOCKET COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000944075
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPUTERS [3571]
		IRS NUMBER:				943155066
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13810
		FILM NUMBER:		04885048

	BUSINESS ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
		BUSINESS PHONE:		5107442700

	MAIL ADDRESS:	
		STREET 1:		37400 CENTRAL COURT
		CITY:			NEWARK
		STATE:			CA
		ZIP:			94560
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>k-11.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>

</head>

<body bgcolor="#FFFFFF">
<hr align="LEFT" size=4>
<p>&nbsp;</p>
<table width="800" border="0" cellspacing="0" cellpadding="0" align="center">
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>FORM
        11-K<br>
        SECURITIES AND EXCHANGE COMMISSION<br>
        WASHINGTON D.C. 20549 </b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>ANNUAL
        REPORT</b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>PURSUANT
        TO SECTION 15(d)<br>
        OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">(X)
        Annual report pursuant to Section 15(d) of the Securities Exchange Act
        of 1934 </font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbspFor
        the fiscal year ended December 31, 2003</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbspCommission
        file number 1-13810</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp</font>&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">A.
        Full title of the plan and the address of the plan, if different from
        that of the issuer named below: </font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>SOCKET
        COMMUNICATIONS, INC. 401(k) PLAN</b></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center">&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="left"><font face="Times New Roman, Times, serif" size="3">B.
        Name of issuer of the securities held pursuant to the plan and the address
        of its principal <br>
        &nbsp&nbsp&nbsp&nbspexecutive office:</font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp</font>&nbsp</div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>SOCKET
        COMMUNICATIONS, INC.<br>
        37400 CENTRAL COURT<br>
        NEWARK, CA 94560</b><br>
        </font></div>
    </td>
  </tr>
  <tr>
    <td>
      <div align="center"></div>
    </td>
  </tr>
</table>
<p align="center">&nbsp;</p>
<hr align="LEFT" size=4>
<p></p>
<p></p>
<p></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
  <b><font size="4"><i>Socket Communications, Inc.<br>
  401(k) Plan<br>
  </i></font></b><font size="4"><i>Financial Statements<br>
  <u>December 31, 2003 and 2002</u></i></font></font></p>
<p> </p>
<p></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>Financial Statements<br>
  December 31, 2003 and 2002</b></font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><br>
  <b>Table of Contents </b></font></p>
<table border=0 cellspacing=0 cellpadding=0 width=849 align="left">
  <tr valign="bottom">
    <td width="88%" height="29">
      <p align="center">&nbsp;</p>
    </td>
    <td width="12%" height="29">
      <p align="center"><font face="Times New Roman, Times, serif" size="3"><u>Page</u></font></p>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30">
      <p align="left"><font face="Times New Roman, Times, serif" size="3">Independent
        Accountants' Report</font>
    </td>
    <td width="12%" height="30">
      <p align="center">1<font face="Times New Roman, Times, serif" size="3">
        </font>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30">
      <p align="left"><font face="Times New Roman, Times, serif" size="3">Financial
        Statements</font>
    </td>
    <td width="12%" height="30">
      <p align="center"> 2
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30"><font face="Times New Roman, Times, serif" size="3">Statements
      of Net Assets Available for Benefits</font></td>
    <td width="12%" height="30">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">2</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30"><font face="Times New Roman, Times, serif" size="3">Statement
      of Changes in Net Assets Available for Benefits</font></td>
    <td width="12%" height="30">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">3</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="30"><font face="Times New Roman, Times, serif" size="3">Notes
      to Financial Statements</font></td>
    <td width="12%" height="30">
      <div align="center">4</div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="88%" height="45"><font face="Times New Roman, Times, serif" size="3">Supplemental
      schedules are omitted because they are not applicable.</font></td>
    <td width="12%" height="45">
      <div align="center"></div>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp; </p>
<p>&nbsp; </p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr align="LEFT" size=4>
<p>&nbsp; </p>
<p align="center"></p>
<p align="center"></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b>INDEPENDENT
  ACCOUNTANTS' REPORT</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>To the Participants
  and<br>
  Plan Administrator of the<br>
  Socket Communications, Inc.<br>
  401(k) Plan</b></font></p>
<p>We have audited the financial statements of the Socket Communications, Inc.
  401(k) Plan as of December 31, 2003 and 2002, and for the years then ended,
  as listed in the accompanying table of contents. These financial statements
  are the responsibility of the Plan's management. Our responsibility is to express
  an opinion on these financial statements based on our audits. </p>
<p>We conducted our audits in accordance with the standards of the Public Company
  Accounting Oversight Board (United States). Those standards require that we
  plan and perform the audits to obtain reasonable assurance about whether the
  financial statements are free of material misstatement. An audit includes examining,
  on a test basis, evidence supporting the amounts and disclosures in the financial
  statements. An audit also includes assessing the accounting principles used
  and significant estimates made by the Plan's management, as well as evaluating
  the overall financial statement presentation. We believe that our audits provide
  a reasonable basis for our opinion. </p>
<p>In our opinion, the financial statements referred to above present fairly,
  in all material respects, the net assets available for benefits of the Plan
  as of December 31, 2003 and 2002, and the changes in net assets available for
  benefits for the years then ended, in conformity with accounting principles
  generally accepted in the United States of America. </p>
<p></p>
<blockquote>
  <p>&nbsp;</p>

</blockquote>
<table width="44%" border="0">
  <tr>
    <td width="9%"> By</td>
    <td width="91%">/s/ Mohler, Nixon & Williams</td>
  </tr>
  <tr>
    <td width="9%">&nbsp;</td>
    <td width="91%">MOHLER, NIXON & WILLIAMS</td>
  </tr>
  <tr>
    <td width="9%">&nbsp;</td>
    <td width="91%">Accountancy Corporation</td>
  </tr>
</table>
<br>
<br>
<table width="30%" border="0">
  <tr>
    <td>Campbell, California</td>
  </tr>
  <tr>
    <td>May 14, 2004</td>
  </tr>
</table>
<p>&nbsp; </p>
<p> <br>
  <br>
</p>
<p>&nbsp; </p>
<p>&nbsp; </p>
<p><br>
</p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  <br>
  </font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">1</font></p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p>&nbsp;</p>
<table width="702" border="0" cellspacing="0" align="center" cellpadding="0">
  <tr>
    <td colspan="3">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b><u>STATEMENTS
        OF NET ASSETS AVAILABLE FOR BENEFITS</u></b></font></div>
    </td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>December
        31,</b></font></div>
    </td>
  </tr>
  <tr bordercolor="#000000">
    <td height="10"><font size="3" face="Times New Roman, Times, serif">&nbsp;
      </font></td>
    <td width="20%" bgcolor="#FFFFFF" height="10">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b><u>2003</u></b></font></div>
    </td>
    <td width="20%" height="10">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b><u>2002</u></b></font></div>
    </td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">Assets: </font></td>
    <td width="20%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font></div>
    </td>
    <td width="20%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font></div>
    </td>
  </tr>
  <tr>
    <td>
      <p><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Investments,
        at fair value</font></p>
    </td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">$
        2,009,005 </font></div>
    </td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">$
        1,058,727 </font></div>
    </td>
  </tr>
  <tr>
    <td height="13"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Participant
      loans </font></td>
    <td width="20%" height="13">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;
        <u>&nbsp;
        &nbsp;4,747&nbsp;&nbsp; &nbsp; </u>&nbsp;</font><u><font size="3" face="Times New Roman, Times, serif">
        </font></u></div>
    </td>
    <td width="20%" height="13">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">&nbsp;
        &nbsp; <u>&nbsp;
        &nbsp;5,750&nbsp;&nbsp; &nbsp;</u>&nbsp;&nbsp; &nbsp; &nbsp;</font><u><font size="3" face="Times New Roman, Times, serif">
        </font></u></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="20%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="20%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets
      held for investment purposes</font></td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">2,013,752</font></div>
    </td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">1,064,477</font></div>
    </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="20%">&nbsp;</td>
    <td width="20%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Other
      receivables </font></td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>
        &nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </u></font></div>
    </td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>&nbsp;
        &nbsp;1,600&nbsp;&nbsp; &nbsp; </u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="20%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="20%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">Net assets available
      for benefits</font></td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><b>$
        2,013,752</b></font></div>
    </td>
    <td width="20%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><b>$
        1,066,077</b></font></div>
    </td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">&nbsp; </font></td>
    <td width="20%"><font size="3" face="Times New Roman, Times, serif">&nbsp;
      </font></td>
    <td width="20%"><font size="3" face="Times New Roman, Times, serif">&nbsp;
      </font></td>
  </tr>
  <tr>
    <td><font size="3" face="Times New Roman, Times, serif">See notes to financial
      statements. </font></td>
    <td width="20%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;
        </font><font size="3"></font></font></font> </font></div>
    </td>
    <td width="20%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;
        </font><font size="3"></font></font></font> </font></div>
    </td>
  </tr>
</table>
<p>&nbsp; </p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">2</font></p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p>&nbsp;</p>
<table width="750" border="0" cellspacing="0" align="center" cellpadding="0">
  <tr valign="bottom">
    <td colspan="3">
      <div align="center"><b><font face="Times New Roman, Times, serif" size="3">STATEMENTS
        OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS</font></b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td colspan="2">
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><b>Years
        ended </b></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%">&nbsp;</td>
    <td colspan="2">
      <div align="center"><b>December 31,</b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%">&nbsp;</td>
    <td width="17%">
      <div align="center"><b><u>2003</u></b></div>
    </td>
    <td width="17%">
      <div align="center"><b><u>2002</u></b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">Additions
      to net assets attributed to:</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3"></font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Investment
      income: </font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3"></font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
      and interest</font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">$
        18,064</font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">$
        10,125</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      realized and unrealized appreciation (depreciation)</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u></u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%">
      <blockquote>
        <blockquote>
          <p>in fair value of investments</p>
        </blockquote>
      </blockquote>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>628,590</u></font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>(266,836)</u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%" height="22"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="17%" height="22">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">646,654</font></div>
    </td>
    <td width="17%" height="22">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">(256,711)</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Contributions:</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants'</font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font>318,813<font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></u></font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font>270,034<font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3"></font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      additions </font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font>965,467<font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></u></font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font>13,323<font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">Deductions
      from net assets attributed to:</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font>
        </font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Withdrawals
      and distributions</font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font>17,792<font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></u></font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font>46,424<font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">Net increase
      (decrease) prior to transfer</font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">947,675</font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">(33,101)</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3"></font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">Transfer
      of assets:</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;To
      the Plan</font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>&nbsp;&nbsp;&nbsp;
        &nbsp;&nbsp; &nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>174,318</u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%" height="26"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      increase in net assets</font></td>
    <td width="17%" height="26">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">947,675</font></div>
    </td>
    <td width="17%" height="26">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">141,217</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">Net assets
      available for benefits:</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Beginning
      of year</font></td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>1,066,077</u></font></div>
    </td>
    <td width="17%">
      <div align="center"><font size="3" face="Times New Roman, Times, serif"><u>924,860</u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font face="Times New Roman, Times, serif" size="3"></font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><b><font size="3" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></b><font size="3" face="Times New Roman, Times, serif">End
      of year</font></td>
    <td width="17%">
      <div align="center"><b><font size="3" face="Times New Roman, Times, serif">$
        2,013,752</font></b></div>
    </td>
    <td width="17%">
      <div align="center"><b><font size="3" face="Times New Roman, Times, serif">$
        1,066,077</font></b></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign="bottom">
    <td width="66%"><font face="Times New Roman, Times, serif" size="3">See notes
      to financial statements.</font></td>
    <td width="17%">&nbsp;</td>
    <td width="17%">
      <div align="center"><font size="2" face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3" face="Times New Roman, Times, serif">&nbsp;</font><font size="3"></font></font></font>
        </font></div>
    </td>
  </tr>
</table>
<p>&nbsp; </p>
<p>&nbsp;</p>
<p align="center">3</p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b>SOCKET COMMUNICATIONS,
  INC.<br>
  401(k) PLAN</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTES TO FINANCIAL STATEMENTS<br>
  <u>DECEMBER 31, 2003 and 2002</u></b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 1 - THE PLAN AND
  ITS SIGNIFICANT ACCOUNTING POLICIES</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>General</i></b> -
  The following description of the Socket Communications, Inc. 401(k) Plan (the
  Plan) provides only general information. Participants should refer to the Plan
  document for a more complete description of the Plan's provisions.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">The Plan is a defined contribution
  plan that was established in 1996 by Socket Communications, Inc. (the Company)
  to provide benefits to eligible employees, as defined in the Plan document.
  The Plan administrator believes that the Plan is currently designed and operated
  in compliance with the applicable requirements of the Internal Revenue Code
  and the provisions of the Employee Retirement Income Security Act of 1974 (ERISA),
  as amended.</font></p>
<p>Effective November 30, 2003, new contributions were no longer allowed in the
  Socket Communications, Inc. Common Stock (Fund); participants in the Plan have
  until November 30, 2004 to liquidate their positions in the Fund</p>
<p><font face="Times New Roman, Times, serif" size="3">Effective January 1, 2002,
  the Plan document was amended to incorporate certain provisions from the Economic
  Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and GUST amendments.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">During 2000, the Company
  purchased 3rd Rail Engineering, Inc. The Company maintained the 3rd Rail Engineering,
  Inc. 401(k) Plan as a separate plan until 2002 when the Company merged the 3rd
  Rail Engineering, Inc. 401(k) Plan into the Plan.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Administration</i></b>
  - Under the terms of the Plan, a group of designated officers of the Company
  act as the trustee. The Company has appointed an Administrative Committee (the
  Committee) to manage the operation and administration of the Plan. The Company
  has contracted with a third-party administrator to process and maintain the
  records of participant data and U.S. Bancorp Piper Jaffray (Piper Jaffray) to
  act as the custodian. Effective January 1, 2004, Wachovia Securities was appointed
  the custodian of the Plan. Substantially all expenses incurred for administering
  the Plan are paid by the Company.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Estimates</i></b>
  - The preparation of financial statements in conformity with accounting principles
  generally accepted in the United States of America requires management to make
  estimates and assumptions that affect the reported amounts of assets and liabilities,
  and changes therein, and disclosure of contingent assets and liabilities. Actual
  results could differ from those estimates.</font></p>
<p>&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">4</font></p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Basis of accounting</i></b>
  - The financial statements of the Plan are prepared on the accrual method of
  accounting in accordance with accounting principles generally accepted in the
  United States of America.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Investments</i></b>
  - Investments of the Plan are held by Piper Jaffray and invested based solely
  upon instructions received from participants. The Company's common stock is
  also an investment option.<br>
  <br>
  </font><font face="Times New Roman, Times, serif" size="3">The Plan's investments
  in mutual funds and the Socket Communications, Inc. Common Stock Fund are valued
  at fair value as of the last day of the Plan year, as measured by quoted market
  prices. Participant loans are valued at cost, which approximates fair value.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Income taxes </i></b>-
  The Plan has adopted a prototype plan that has received an opinion letter from
  the Internal Revenue Service. The Company believes that the Plan is operated
  in accordance with, and qualifies under, the applicable requirements of the
  Internal Revenue Code and related state statutes, and that the trust, which
  forms a part of the Plan, is exempt from federal income and state franchise
  taxes.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Risks and uncertainties</i></b>
  - The Plan provides for various investment options in any combination of investment
  securities offered by the Plan, including Company common stock. Investment securities
  are exposed to various risks, such as interest rate, market fluctuations and
  credit risks. Due to the risk associated with certain investment securities,
  it is at least reasonably possible that changes in market values, interest rates
  or other factors in the near term would materially affect participants' account
  balances and the amounts reported in the statements of net assets available
  for benefits and the statement of changes in net assets available for benefits.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 2 - PARTICIPATION
  AND BENEFITS</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Participant contributions</i>
  </b>- Participants may elect to have the Company contribute up to 20% of their
  eligible pre-tax compensation not to exceed the amount allowable under current
  income tax regulations. Participants who elect to have the Company contribute
  a portion of their compensation to the Plan agree to accept an equivalent reduction
  in taxable compensation. Contributions withheld are invested in accordance with
  the participant's direction.</font></p>
<p><font face="Times New Roman, Times, serif" size="3">Participants are also allowed
  to make rollover contributions of amounts received from other tax-qualified
  employer-sponsored retirement plans. Such contributions are deposited in the
  appropriate investment funds in accordance with the participant's direction
  and the Plan's provisions.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Employer contributions</i>
  </b>- The Company is allowed to make qualified non-elective matching contributions
  as defined in the Plan. No qualified non-elective matching contribution has
  been made for the years ended December 31, 2003 and 2002.</font></p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif" size="3">5</font></p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Vesting </i></b>-
  Participants are fully vested in their account at all times. </font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Participant accounts</i></b><i>
  </i>- Each participant's account is credited with the participant's contribution,
  Plan earnings or losses and an allocation of the Company's contribution, if
  any. Allocation of the Company's contribution is based on eligible employee
  compensation, as defined in the Plan.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><i><b>Payment of benefits</b></i>
  - Upon termination, the participants or beneficiaries may elect to leave their
  account balance in the Plan, or receive their total benefits in a lump sum amount,
  installments, employer securities or other marketable securities equal to the
  value of the participant's account. The Plan allows for the automatic lump sum
  distribution of participant account balances that do not exceed $5,000.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b><i>Loans to participants</i></b>
  - The Plan allows participants to borrow up to the lesser of $50,000 or 50%
  of their account balance. The loans are secured by the participant's account
  balance. Such loans bear interest at the available market financing rates and
  must be repaid to the Plan within a five-year period, unless the loan is used
  for the purchase of a principal residence in which case the maximum repayment
  period may be longer. The specific terms and conditions of such loans are established
  by the Plan administrator. Outstanding loans at December 31, 2003 carry interest
  rates ranging from 4.25% to 4.75%.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 3 - PLAN MERGER/TRANSFER</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">In conjunction with the
  acquisition of 3rd Rail Engineering, Inc. by the Company, assets totaling approximately
  $174,000 were transferred from the 3rd Rail Engineering, Inc. 401(k) Plan into
  the Plan during 2002.</font></p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 4 - INVESTMENTS</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">The following table presents
  the fair values of investments and investment funds that include 5% or more
  of the Plan's net assets at December 31:</font></p>
<table width="680" border="0" cellspacing="0" cellpadding="0" align="center">
  <tr valign="bottom">
    <td>&nbsp;</td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>2003</u></font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>2002</u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">Alliance Premier Growth
      Fund</font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">$
        192,380</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">$
        145,785</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="19"><font face="Times New Roman, Times, serif" size="3">Lord Abbett
      Mid Cap Value Fund</font></td>
    <td height="19">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">301,087</font></div>
    </td>
    <td height="19">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">180,812</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">MFS Ser TR V Total
      Return Fund </font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">112,718</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">76,773</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">PIMCO Total Return
      Fund</font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">61,449</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">65,772</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">Vanguard 500 Index
      Fund </font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">299,191</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">117,711</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">First American Prime
      Obligations Fund </font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">289,043</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">273,682</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">Liberty Acorn TR Fund</font></td>
    <td>
      <div align="center">103,340</div>
    </td>
    <td>
      <div align="center">11,153</div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">Socket Communications
      Common Stock Fund</font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">491,288</font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3">112,333</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td><font face="Times New Roman, Times, serif" size="3">Other funds individually
      less than 5% of net assets </font></td>
    <td>
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">163,256</font></u></div>
    </td>
    <td>
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">80,456</font></u></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="21"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></td>
    <td height="21">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
    <td height="21">
      <div align="center"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font size="3"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif"><font face="Times New Roman, Times, serif" size="3">&nbsp</font></font></font></font></font></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td height="29">
      <p><b><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp&nbsp</font></b><font face="Times New Roman, Times, serif" size="3">Assets
        held for investment purposes</font></p>
    </td>
    <td height="29">
      <div align="center"><b><font face="Times New Roman, Times, serif" size="3">$
        2,013,752</font></b></div>
    </td>
    <td height="29">
      <div align="center"><b><font face="Times New Roman, Times, serif" size="3">$
        1,064,477</font></b></div>
    </td>
  </tr>
</table>
<p align="center"><font face="Times New Roman, Times, serif">6</font></p>
<hr align="LEFT" size=4>
<p><font face="Times New Roman, Times, serif" size="3">The Plan's investments
  (including gains and losses on investments bought and sold, as well as held
  during the year) appreciated (depreciated) in value as follows for the years
  ended December 31:<br>
  <b> </b> </font></p>
<table width="680" border="0" cellspacing="0" cellpadding="0" align="center">
  <tr valign="bottom">
    <td width="378" height="25">&nbsp;</td>
    <td width="147" height="25">
      <div align="center"><u>2003</u></div>
    </td>
    <td width="155" height="25">
      <div align="center"><u>2002</u></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="378" height="11"><font face="Times New Roman, Times, serif" size="3"><br>
      Common stock</font></td>
    <td height="11">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">$
        443,372 </font></div>
    </td>
    <td height="11">
      <div align="center"><font face="Times New Roman, Times, serif" size="3">($
        131,571)</font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="378"><font face="Times New Roman, Times, serif" size="3">Mutual
      funds</font></td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>185,218</u></font></div>
    </td>
    <td>
      <div align="center"><font face="Times New Roman, Times, serif" size="3"><u>(135,265)</u></font></div>
    </td>
  </tr>
  <tr valign="bottom">
    <td width="378" height="23"><b><font face="Times New Roman, Times, serif" size="3">&nbsp&nbsp&nbsp&nbsp</font></b></td>
    <td height="23">
      <div align="center"><b><font face="Times New Roman, Times, serif" size="3">$
        628,590 </font></b></div>
    </td>
    <td height="23">
      <div align="center"><b><font face="Times New Roman, Times, serif" size="3">($
        266,836)</font></b></div>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 5 - PARTY-IN-INTEREST
  TRANSACTIONS</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">As allowed by the Plan,
  participants may elect to invest a portion of their account in the common stock
  of the Company. Aggregate investment in the Socket Communications, Inc. Common
  Stock Fund at December 31, 2003 and 2002 was as follows:</font></p>
<table width="680" border="0" cellspacing="0" cellpadding="0" align="center" height="104">
  <tr>
    <td width="147" height="34">
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">Date</font></u></div>
    </td>
    <td width="335" height="34">
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">Number
        of shares</font></u></div>
    </td>
    <td width="225" height="34">
      <div align="center"><u><font face="Times New Roman, Times, serif" size="3">Fair
        value</font></u></div>
    </td>
  </tr>
  <tr>
    <td width="147">
      <div align="center">2003</div>
    </td>
    <td width="335">
      <div align="center">147,102</div>
    </td>
    <td width="225">
      <div align="center">$491,288</div>
    </td>
  </tr>
  <tr>
    <td width="147">
      <div align="center">2002</div>
    </td>
    <td width="335">
      <div align="center">156,018</div>
    </td>
    <td width="225">
      <div align="center">$112,333</div>
    </td>
  </tr>
</table>
<p><font face="Times New Roman, Times, serif" size="3"><b>NOTE 6 - PLAN TERMINATION
  OR MODIFICATION</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">The Company intends to
  continue the Plan indefinitely for the benefit of its participants; however,
  it reserves the right to terminate or modify the Plan at any time by resolution
  of its Board of Directors and subject to the provisions of ERISA. </font></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p></p>
<p align="left">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font face="Times New Roman, Times, serif">7</font></p>
<hr align="LEFT" size=4>
<p align="center"><font face="Times New Roman, Times, serif" size="3"> <b>SIGNATURES</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3"><i>The Plan</i>. Pursuant
  to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
  1934, the registrant has duly caused this report to be signed on its behalf
  by the undersigned, hereunto duly authorized.</font></p>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><u>SOCKET
  COMMUNICATIONS, INC.</u><br>
  Registrant</font></p>
<table width="868" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="498"><font face="Times New Roman, Times, serif" size="3">Date:
      June 25, 2004</font></td>
    <td width="370"><font face="Times New Roman, Times, serif" size="3"><u>/s/
      Kevin J. Mills</u></font></td>
  </tr>
  <tr>
    <td width="498">&nbsp;</td>
    <td width="370"><font face="Times New Roman, Times, serif" size="3">Kevin
      J. Mills<br>
      President and Chief Executive Officer </font></td>
  </tr>
  <tr>
    <td width="498">&nbsp;</td>
    <td width="370">&nbsp;</td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  </font></p>
<p>&nbsp;</p>
<hr align="LEFT" size=4>
<p align="center"><font face="Times New Roman, Times, serif" size="3"><b>CONSENT
  OF INDEPENDENT ACCOUNTANTS</b></font></p>
<p><font face="Times New Roman, Times, serif" size="3">We consent to the incorporation
  by reference in the Registration Statement on Form S-8 (No. 333-106502) of Socket
  Communications, Inc. of our report dated May 14, 2004, with respect to the financial
  statements of the Socket Communications, Inc. 401(k) Plan included in this Annual
  Report on Form 11-K.</font></p>
<p></p>
<p><font face="Times New Roman, Times, serif" size="3"><br>
  By <u>/s/ Mohler, Nixon &amp; Williams</u><br>
  &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp MOHLER, NIXON &amp; WILLIAMS<br>
  &nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspAccountancy Corporation</font></p>
<p><font face="Times New Roman, Times, serif" size="3">Campbell, California<br>
  June 24, 2004</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<hr align="LEFT" size=4>
<p></p>
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