News Release Details

Wi-LAN PURCHASES HEAD OFFICE BUILDING IN CALGARY

02/19/2004

 

Purchase Improves Operating Flexibility and Earnings

CALGARY, Canada - February 19, 2004 - Wi-LAN Inc. (TSE:WIN), a global provider of broadband wireless communications products and technologies, announced today it has entered into an agreement to purchase its head office building in Calgary. The purchase of the 91,070 square foot state-of-the-art facility, which Wi-LAN has been leasing since construction was completed in June 2001, will provide Wi-LAN with additional operating flexibility and is expected to contribute at least $0.3 million annually to Wi-LAN’s net income, when compared to the prior ten-year lease arrangements. Wi-LAN is purchasing the building for $13.35 million and is financing the purchase with an $8 million mortgage and $5.35 million cash to be paid on or before March 31, 2004.

"The purchase of our building, while significant because of the dollar amount, is really just an operating decision that improves our earnings by about $0.3 million per year, gives us the flexibility to achieve further cost reductions by allowing us to sublease the remainder of our excess space, and gives us the option to sell the building in the future when conditions are right, " said Dr. Sayed-Amr El-Hamamsy, President and Chief Executive Officer of Wi-LAN. "Wi-LAN does not intend to be in the real estate business but by purchasing the building we have added a high quality long-term asset to our balance sheet with mortgage payments that are significantly lower than the prior lease payments. After reducing the net lease payments by subleasing much of the building, the building purchase is an opportunity to do more. The building is in a prime location in Calgary, one of the fastest growing cities in Canada, and we expect its value to appreciate, adding value to the option of a future sale of the building. It also goes without saying that the purchase of the building is not one of the potential acquisitions that were alluded to in the prospectuses of our 2003 equity financings. The majority of the $5.35 million cash used for the purchase has been offset by about $3 million from the exercise of warrants from our February 2002 financing that expired on Tuesday. We are continuing to consider potential future acquisition opportunities that would be accretive to the value of our business."

Wi-LAN announced plans to move to its current facility in September 2000 in order to improve efficiencies by locating its administrative, product design and testing, and R&D efforts in one building. Construction was completed in June 2001 and Wi-LAN moved shortly thereafter. Wi-LAN currently occupies approximately one-third of the facility, subleases about one-third of the building and intends to sublease the remaining one-third. The building, 2891 Sunridge Way N.E., is located in Calgary's technology-based northeast sector in the Sunridge Business Park near the intersection of 16th Avenue (Trans-Canada Highway) and Barlow Trail N.E.

About Wi-LAN Inc.

Wi-LAN is a global provider of broadband wireless communications products and technologies, offering businesses, including telecom service providers, and government enterprises effective, economic and secure wireless high-speed communications solutions. Wi-LAN specializes in high-speed Internet access, data network extension, and wireless data and telephony backhaul, utilizing its high quality products and industry-leading technologies. Wi-LAN believes its W-OFDM patents are necessary for the implementation of devices using the IEEE 802.16 WirelessMAN Standard * and the ETSI BRAN HiperMAN* standard (the WiMAX* standards), the IEEE standards 802.11a and 802.11g (the 2nd generation Wi-Fi* standards), and the ETSI BRAN HiperLAN/2* standard. Wi-LAN licenses its W-OFDM technology and has executed non-exclusive W-OFDM license agreements with semiconductor companies. Wi-LAN is the Chair Company of the OFDM Forum (www.ofdm-forum.com) and an active member of the WiMAX* Forum (www.wimaxforum.org). 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.wilan.com.

Forward Looking Information

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless 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 wireless communications, the Company's ability to attract and retain 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.

* All trademarks and brands mentioned in this release are the property of their respective owners.

For more information please contact:

Wi-LAN Inc.
Corporate Communications and Investor Relations
Ken Wetherell
Ph: (403) 207-6329
E-mail: kwetherell@wi-lan.com

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