News Release Details

Wi-LAN and 4G Network Technologies Sign U.S. $31 Million

06/07/2000


Purchase Order as Part of Five-year Supply Agreement to Build a Fourth-generation Cellular Network Throughout the United States

Purchase Order for Wi-LAN's Hopper Plus(TM) Ethernet  Bridges and Newly Launched I.WiLL(TM) System Placed for First 18 Months to Build an Affordable Broadband Wireless Mobile Access Network

Atlanta, Georgia
June 7, 2000

Wi-LAN Inc. (TSE:WIN - news), an innovator of high-speed wireless data/Internet communications, and 4G Network Technologies Inc. (4GNT), a developmental-stage company created to deploy an advanced wireless broadband network, today at SUPERCOMM 2000 announced a U.S. $31 million purchase order as part of a five-year supply agreement in which 4GNT will use Wi-LAN's new I.WiLL System wireless broadband access products - built with Wi-LAN's patented Wideband Orthogonal Frequency Division Multiplexing (W-OFDM) technology - to construct a national U.S. and international high-speed broadband wireless network.

Under terms of the agreement, Wi-LAN will supply 4GNT with 2.4GHz Hopper Plus and 5GHz I.WiLL units over a 56-month period. The purchase order for the first 18 months has already been placed. Wi-LAN is expected to supply 4GNT with product valued at: U.S. $2 million in 2000; U.S. $28 million in 2001; U.S. $203 million in 2002; U.S. $502 million in 2003; and U.S. $698 million in 2004.

"4GNT's vision is to deploy a 'fourth generation' cellular network to deliver high-speed broadband services to tens of millions of subscribers," said Philip Barber, 4GNT's CEO. "Wi-LAN shares our vision and its I.WiLL System, built with W-OFDM technology, uniquely suits our model."

4GNT, headquartered in Dallas, Texas, is founded by Phillip Barber, a telecommunications industry veteran and visionary who has helped many wireless operators substantially grow in the early years of paging and cellular systems. 4GNT has arranged initial financing of U.S. $42 million, not sourced from Wi-LAN. Wi-LAN owns 10 per cent of 4GNT and 4GNT has provisions in the agreement to acquire warrants at future market prices not exceeding to more than five per cent of Wi-LAN. The agreement is subject to terms and conditions that are commensurate with agreements of this size and nature.

4GNT's planned network will initially provide high-performance broadband fixed wireless services at speeds up to 30 megabits per second, 15 to 20 times faster than 3G PCS, DSL, and cable modem, and 500 times faster than a 56 kilobit-per-second modem. Broadband mobile wireless services will follow. Target customers include commercial, mobile professionals, small offices, home offices, and consumer households.

4GNT is scheduled to begin commercial fixed wireless service in fall 2000 with consumer services beginning in spring 2001, expanding to mobile service and multiple markets within 18 months.

"Wi-LAN has been working with 4GNT for two years on its broadband wireless network concept," said Dr. Hatim Zaghloul, Wi-LAN chairman and CEO. "With plans to deliver fixed and mobile broadband services, 4GNT promises to bring Wi-LAN Network Living(TM) to life."

Network Living is the concept of being able to control your environment wirelessly. Network Living is not so much of a change in terms of using computers more closely, but a lifestyle change, to one where people all live with the ease of wireless communication in every day tasks; anytime, anywhere, to anyone.

4GNT is the first wide-area mobile cellular format network incorporating W-OFDM technology to deliver true high performance broadband services to subscribers.

4GNT's network will initially be based on Wi-LAN's 2.4 GHz Hopper Plus product line - currently at 4.5 Mbps (megabits per second) and soon to be at 12 Mbps - before incorporating products from the 5 GHz W-OFDM-based I.WiLL family.

I.WiLL System:
Wi-LAN's new I.WiLL System is a broadband access solution for deploying high-speed, secure, reliable, scalable and cost-effective broadband wireless access networks ideal for service providers.

The I.WiLL System can be used in a wide variety of service provider networking applications as an overlay with - or replacement of - traditional wire line network solutions. Consisting of the I.WiLL POP- base station and I.WiLL LCPE remote unit, the I.WiLL System is the second generation of Wi-LAN products using the company's patented W-OFDM technology. With a peak data rate of 32 Mbps, the I.WiLL System demonstrates the industry's most effective use of bandwidth - approximately three bits per second per hertz.

"The I.WiLL System provides an ideal solution for public broadband networks requiring wireless multiple-site communications infrastructure," says Bill Hews, Wi-LAN president and chief operating officer. "The I.WiLL System meets the high-quality demands of service providers like 4GNT looking to offer wireless public broadband access to their customers."

Wi-LAN's I.WiLL System will initially operate in the 2.4 GHz to 2.4835 GHz unlicensed ISM band, allowing wireless network connectivity at a fraction of wire, cable, or fiber networking costs.

The I.WiLL System uses an efficient adaptive polling protocol to make for easier quality of service controls and to eliminate inefficient data collisions that plague more commonplace wireless networking systems. With the I.WiLL System, all remote units don't have to "see" each other, making it easy for service providers to add many more stations to the network.

The W-OFDM Advantage:
W-OFDM is a variation of OFDM that further improves its characteristics and enables low-cost broadband applications. The signal reception is corrected for distortions, allowing greater transmission speeds, and processes the signal to maximize the range. W-OFDM allows lower-power, multipoint radio frequency (RF) networks to be implemented, minimizing interference with adjacent networks.

W-OFDM is the most spectrally efficient technology known today. Its spectral characteristics enable a high bits per second per Hz as well as tighter packing of channels. These two features increase the overall bandwidth efficiency and cause less disruption of adjacent users. Less disruption of adjacent users and insensitivity to external noise means that high-speed multipoint data networks can be simply and rapidly deployed. Once installed, these systems are tolerant to changes in the RF environment, limiting maintenance requirements, and the systems can be easily expanded to meet the user's changing needs.

Wi-LAN at SUPERCOMM 2000:
Product demonstrations of the I.WiLL System are available at Wi-LAN's SUPERCOMM 2000 booth (#6967), located in the heart of the "Wireless and Satellite Technology Zone".

Wi-LAN will hold a press conference today, 9 a.m. (EDT) in room #308E, Georgia World Congress Center. Interested parties can take in the proceedings live or: through teleconference by calling 1-888-422-7101 (toll-free within North America) or (608) 250-9281 (international) and entering conference code #333941; or through audio web cast by visiting the company's web site (www.wi-lan.com).

Starting today, the company's web site (www.wi-lan.com) will include footage of I.WiLL System product demonstrations, presentations and other Wi-LAN exhibition booth activities at SUPERCOMM 2000, the world's largest annual communications technology exhibition and conference, in Atlanta, Georgia.

About 4G Network Technologies Inc.:
4G Network Technologies Inc.'s (4GNT) mission is to design and operate an advanced wireless network for delivering convergent broadband services to businesses and consumers both domestically in the U.S. and internationally. 4GNT's vision is to deploy a defining "fourth generation" ubiquitous coverage local loop network using patented spread spectrum technologies for delivering fully portable, hyper-speed broadband services to tens of millions of subscribers including; commercial, mobile professionals, small offices/home offices and consumer households. More information about 4GNT can be found at http://www.4gnetwork.com.

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