News Release Details

Wi-LAN Announces 2001 Second Quarter Unaudited Broadband Wireless Revenue


Calgary, Canada
May 16, 2001

Wi-LAN Inc. (TSE:WIN), a leading innovator of wireless data/Internet communications, today announced unaudited broadband wireless revenue for the three months ended April 30, 2001 was $5.6 million, an increase of 87% over the broadband wireless revenue in the same period in 2000 and 8% growth over the first quarter of fiscal 2001. This amount is 80% of Wi-LAN's second quarter guidance of $7.0 million, which was provided on February 7, 2001. The shortfall is due to slower than expected customer equipment rollouts caused largely by slowing macro-economic conditions in North America.

"Our comprehensive product offering and diversified customer base is serving us well, enabling Wi-LAN to continue to show sales growth in this challenging economic climate and positioning us as a leader in the broadband wireless equipment market," said Peter Kinash, Chief Financial Officer of Wi-LAN. "Demand for our newest advanced wireless Ethernet bridge, AWE 120-58, exceeded supply, following FCC certification in April. We believe increased availability of the AWE 120-58 product will fuel further growth in the third quarter."

Second Quarter Highlights

Wi-LAN accomplished several significant strategic initiatives in the second quarter that will contribute to the Company's future growth, including:

· Signing a two-year supply agreement with NetCom AB (NASDAQ: NECSA and NECSB) a leading alternative pan-European telecommunications company and the parent company of Tele2. Under terms of the agreement, NetCom AB will purchase Wi-LAN's broadband wireless access systems, based on its patented Wide-band Orthogonal Frequency Division Multiplexing (W-OFDM) technology, which will be used to build wireless networks initially in Poland, Finland, Sweden, Denmark, Norway, and the Czech Republic. 

· Signing a three-year original equipment manufacturing (OEM) agreement with Symbol Technologies, Inc (NYSE: SBL), the leader in wireless and mobile data transactions and systems. Under the terms of agreement, Wi-LAN will provide Wi-LAN AWE advanced wireless Ethernet bridges and TIL-TEK antenna systems to Symbol. Wi-LAN's products will be used to complement Symbol's wireless LAN and POS product offerings for several growth market segments including retail, healthcare, education, manufacturing and government. Additional Wi-LAN products may be added to this agreement as they become available.

· Signing a one-year renewable supply agreement with Solectron Corporation (NYSE: SLR) the world's leading provider of electronics manufacturing and supply-chain management services, to produce Wi-LAN's W-OFDM based broadband wireless access systems. Solectron's state-of-the-art manufacturing facilities in North America, Europe, Asia and Latin America will provide Wi-LAN with the ability to manufacture its products in close proximity to its growing global customer base.

· The acquisition of UC Wireless, a privately held fixed wireless access equipment supplier, which will operate as a wholly owned subsidiary of Wi-LAN. This acquisition provides Wi-LAN with increased reach and access to large worldwide customers. In addition, Wi-LAN gained control of UC Wireless' established portfolio of wireless WAN products that are complementary to Wi-LAN's product lines as well as significant resources in the areas of DSP, software and RF engineering. Wi-LAN also gained access to UC Wireless' proprietary Versatile Intelligent Network Environment (VINE) technology, an anypoint-to-multipoint network architecture that is used to economically solve non-line-of-sight (NLOS) challenges. Wi-LAN acquired substantially all of UC Wireless' assets in exchange for approximately 1.7 million shares of Wi-LAN common stock. Wi-LAN plans to continue UC Wireless' operations out of Santa Barbara, California.

· The launch of the AWE 120-58, a new 12-megabit-per-second advanced wireless Ethernet bridge for use in the 5.8 GHz unlicensed frequency band that uses Wi-LAN'S patented MC-DSSS technology.

· Receiving product approvals for the AWE 120-24 and the BWS 300-24 by the Chinese State Regulatory Radio Commission (SRRC), for the AWE 120-58 by the United States Federal Communications Commission (FCC) and by Industry Canada, and for the BWS Series 3000 by the European Telecommunications Standards Institute (ETSI).

· Initiating a financing in the form of a public offering of 937,500 units at a price of $8.00 per unit for gross proceeds of $7.5 million. The offering was sold to Research Capital Corporation with an option to purchase up to an additional 625,000 units for total potential proceeds of $12.5 million. With the filing of the final prospectus, the underwritten portion of the financing was increased to 1,175,000 units (gross proceeds of $9.4 million), and the underwriter's option was adjusted to keep total potential proceeds at $12.5 million. When the offering closed on May 15, total gross proceeds were $11.6 million. The net proceeds of the offering will be used to provide additional funding for product development, to support sales growth and for general corporate purposes. Each unit consists of one common share and one-half of one common share purchase warrant. Each full warrant will entitle the holder to acquire one common share of Wi-LAN at an exercise price of $9.50 at any time on or before May 15, 2003.

Financial Outlook

Wi-LAN is targeting broadband wireless revenue of between $6 million and $9 million in the third quarter. Revenue visibility is very difficult in this macro-economic climate so Wi-LAN is not providing guidance for the fourth quarter or for fiscal 2001. Meeting our revenue goals is subject to various risk factors, some of which are set out under the title "Forward Looking Information" at the end of this release. 

Wi-LAN, exclusive of DTS, has significant positive working capital and anticipates having adequate financial resources, including potential positive cash contributions from dispositions of non-core assets, to sustain operations at planned levels into calendar 2002. Any additional financing in 2001 is expected to be performance-based, in that growing sales shall require additional working capital, which would require financing. 

Quarterly Consolidated Results

Wi-LAN intends to release its consolidated results for the 3 months ended April 30, 2001 on June 13, 2001. A conference call to discuss the results will be held on the following day at 11 A.M. Eastern time. Details with regard to the call will be posted on Wi-LAN's website at

All financial information in this document is reported in Canadian dollars, unless otherwise indicated. 

Forward Looking Information

Certain statements in this release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. These can include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless data communications industry. These risks and uncertainties include, but are not restricted to, continued increased demand for the Company's products, the Company's ability to maintain its technological leadership in the field of high-speed data communications, the Company's ability to attract and retain key employees, the enforceability of the Company's patents, the availability of key components, competition in the wireless industry, technological change, risk of third party claims of infringement, inability to protect the Company's intellectual property against unauthorized or infringing uses, management of growth and expansion, limited financial resources and the need for future financing, and the Company's ability to raise capital on acceptable terms when needed.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

With our Interactive Analyst Center (IAC), historical financial data, both quarterly and annual, is available in an easy to access spreadsheet format. View and export our financial statements, non-GAAP reconciliations as well as share information.


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