News Release Details

WI-LAN CLOSES SALE OF CONTROLLING INTEREST IN DIGITAL TRANSMISSION SYSTEMS

03/12/2002

Divestiture Allows Wi-LAN to Increase Focus on Core Broadband Wireless Business

(CALGARY, Canada - March 12, 2002) - Wi-LAN Inc. (TSE:WIN), an innovator of high-speed wireless data/Internet communications, today announced it has closed the sale of its controlling interest in Digital Transmission Systems (DTS) to a DTS Employee Stock Ownership Program (ESOP). As a result of the transaction, the ESOP assumes controlling interest in DTS, Wi-LAN relinquishes its DTS Board seats, and Wi-LAN will report a gain on sale of $27,319,000 in its consolidated financial results for the three months ended January 31, 2001. The cash portion of the gain on sale is $166,000.

"With this sale, we are focused purely on our core broadband wireless strategy," said Hatim Zaghloul, President, Chairman and CEO, Wi-LAN Inc. "We are excited about focusing all our energy on growing our core business to its full potential."

In January 2000, Wi-LAN acquired a controlling interest in DTS. Later in 2000 and 2001, Wi-LAN acquired additional ownership in DTS through various transactions. In its financial results for the nine months ended July 31, 2001, Wi-LAN wrote down the assets of DTS to estimated fair market value, and for the financial year ended October 31, 2001, DTS was recorded as discontinued operations. On December 31, 2001, the ESOP agreed to purchase all DTS equity instruments held by Wi-LAN. The final selling price of the approximately 10 million shares in DTS was subject to an independent valuation by February 28, 2002. Pursuant to the completion of the independent valuation and further negotiations between Wi-LAN and DTS, the purchase consideration agreed to was $166,000 cash and Wi-LAN will retain ownership of 250,000 DTS common shares.

The gain on sale of the DTS shares has been determined as follows (in thousands of Canadian dollars):

Cash proceeds from ESOP 

$ 166

Remaining investment in DTS

39

Reduction in consolidated 
 liabilities attributable to DTS 

30,329

Non-controlled interest in DTS

1,825

32,359

Less: Reduction in consolidated
assets attributable to DTS 

(5,040)

Gain on sale

$ 27,319

"The closing of the sale of DTS leaves Wi-LAN with a much stronger balance sheet," said Steve Bellamy, Chief Financial Officer, Wi-LAN. "This transaction enhances Wi-LAN's consolidated financial results today and will continue to do so going forward."

About Wi-LAN Inc.

Wi-LAN is a global innovator in the field of high-speed wireless data communications, specializing in high-speed Internet access, LAN/WAN extension and broadband wireless access. Wi-LAN is the Chair Company of the OFDM Forum (www.ofdm-forum.com). Wi-LAN believes its W-OFDM patent is necessary for the implementation of devices using the IEEE 802.11a or ETSI BRAN HiperLAN/2 standards. Wi-LAN's products have been sold in more than 50 countries on six continents. Wi-LAN's common shares trade on The Toronto Stock Exchange under the symbol "WIN." Detailed information on Wi-LAN can be found at www.wi-lan.com.

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.

Disclaimer

Please note that you are now entering a website directly or indirectly maintained by a third party (the "External Site") and that you do so at your own risk.

Wi-LAN Inc. and its affiliates (“WIN”) have no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only.

By clicking “Accept” you acknowledge and agree that neither WIN nor third party provider Virtua Research, Inc. (“Virtua) is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the Linked Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against WIN and Virtua and further acknowledge and agree that in no event shall WIN or Virtua, or their respective officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to the Legal Notice, this disclaimer or the External Site

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if WIN and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

In addition to disclosing results determined in accordance with GAAP, WIN may also disclose certain non-GAAP and pro forma non-GAAP results of operations, including certain ratios, operational and miscellaneous data, as well as net income, diluted earnings per share, operating expenses, and operating income that make certain adjustments or exclude certain charges and gains that are outlined in the schedules included in this website. Management believes that this non-GAAP and pro forma non-GAAP information provides investors with additional information to assess WIN operating performance by making certain adjustments or excluding costs or gains and assists investors in comparing WIN's operating performance to prior periods. Management uses this non-GAAP and pro forma non-GAAP information, along with GAAP information, in evaluating its historical operating performance. WIN and Virtua also take no responsibility for third party pricing data provided for informational purposes and certain ratio results formulated from the provided third party pricing data.

The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Decline Agree

Copyright © . All rights reserved. Q4 Web Systems