News Release Details

Wi-LAN Reduces Staff to Improve Cash Flow

09/14/2001


Streamlined Staff Geared to Maintain Sales and Product Momentum


CALGARY, Canada - (September 14, 2001) - Wi-LAN Inc. (TSE:WIN), a global innovator of high-speed wireless data and Internet communications, today announced management and structural changes to improve the company’s cash flow used in operations by approximately $500,000 per month. These changes are being made to conserve cash and sustain Wi-LAN’s sales growth projections in the fixed wireless access market.

"Our goal is to live within our means until we see a turn around in this market we are addressing," says Dr. Hatim Zaghloul, Wi-LAN's President, Chairman and CEO. "We are weathering a storm and we are taking the necessary steps to guide ourselves through it."

The executive team recognized that the current headcount does not warrant having a separate President and CEO. By mutual agreement, Bill Hews has stepped down as President. Mr. Hews will carry on as a director of Wi-LAN, and Dr. Zaghloul will move forward in the position of President, Chairman, and CEO.

"Bill has contributed tremendously to Wi-LAN, and has helped establish it as a quality company," said Dr. Zaghloul. "I am looking forward to continuing to work with Bill as a director."

Wi-LAN is also reducing its staff by 55% to approximately 55 people, excluding Til-Tek, UC Wireless, and DTS. With this reduction in staff and planned reductions in other operating expenditures, management expects to maintain a minimum cash balance of $3 million over the next 12 months.

"I have vigorously examined the finances and operations of Wi-LAN," said Steve Bellamy, Wi-LAN's Chief Financial Officer. "We are confident that we are able continue to operate within our existing cash resources without recourse to external financing sources."

Wi-LAN met its third quarter guidance of $7.0 to $9.0 million in broadband wireless revenue, which was revised upwards on July 5, 2001 from the $6.0 to $9.0 million forecast in May. Wi-LAN is reaffirming its wireless revenue target of between $8.0 and $10 million for the three months ending October 31, 2001.

Growth in 2001 and 2002
Wi-LAN has addressed the needs of the business going forward to ensure a strong 2001 and 2002. Plans include maintaining a strong sales force, and with the added presence of our growing distribution channels and OEM agreements, will continue to drive forward in the broadband wireless access market. Wi-LAN’s Broadband Wireless Systems (BWS) products are in the manufacturing stage, so fewer resources are required for Research and Development. Master Service Agreements and integrators such as General Dynamics minimize the need for in-house network design.

Wi-LAN’s wireless networking products have established the company as a leader in broadband wireless access networks where data communication is often limited due to cost or lack of traditional wired systems. Wi-LAN will now focus on delivering its high-speed wireless networking products to developers of large-scale networks in numerous developed and developing countries.

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 maintain key employees, the enforceability of the Company's patents, and the availability of key components. 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.

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