27 May 2004 13:09
interWAVE Gains Type Approval and First Order in Russia
MOUNTAIN VIEW, Calif., May 27 /PRNewswire-FirstCall/ -- Continuing to expand its footprint throughout the world,
interWAVE(R) Communications , a pioneer in compact wireless communications systems, today announced that it has received
type approval from the Russian Ministry of Communications for its Global System for Mobile Communications
("GSM") standards, and its Network Subsystem ("NSS") and Basestation Subsystem ("BSS")
product lines. The certification was awarded by the Laboratory of Mobile Systems of FSUE LONIIS (Federal State Unitary
Enterprise Leningrad Research and Development Institute of Telecommunications) and included ministry assignment and
successful factory and field tests in accordance with Russian requirements. As a result of the approval interWAVE
received its first order for deployment of a GSM network in Russia. This approval is also expected to be valid in a
number of countries in Central Asia.
Russia's territory is diverse in many respects, with eleven time zones, the world's largest areas of
forest, numerous mountain ranges, vast plains, and 150 million inhabitants. While major cities such as Moscow and St.
Petersburg enjoy advanced telecommunications, with approximately 24 fixed lines per 100 inhabitants and 31 mobile lines
per 100 inhabitants, areas outside of these major metropolitan areas have fixed and mobile coverage of less than 10
lines per 100 inhabitants. According to the Russian State Telecommunications Committee, there are up to 50,000
settlements in Russia with nominal modern communications links. Additionally, due to lack of funds local fixed line
telephony companies have been slow to invest in infrastructure and are unable to provide fixed telephone lines to remote
areas. These difficulties have led to the rapid proliferation of wireless communications, which has grown at a rate
approximating 100% per year in the last three years. These remote markets represent a significant opportunity for
interWAVE's unique wireless telecommunications product offerings.
"interWAVE's GSM solution is ideal for the Russian market as it is the perfect alternative to fixed
telephony and enables operators to extend coverage to areas either too remote or geographically hard to reach,"
said Erwin F. Leichtle, chief executive officer of interWAVE. "Our GSM technology utilizes modern compression
techniques when relying on satellite transmission for backhauling cellular traffic to an operator's main switch.
This unique compression approach delivers significant network improvements to link robustness and network Grade of
Service (GoS) while reducing the required satellite backhaul bandwidth and costs associated with renting satellite
bandwidth. We also now plan to pursue the approval of our CDMA2000 1XRTT product line, which we believe is a
considerable market opportunity for us in the 450 megahertz spectrum."
About interWAVE
interWAVE Communications International, Ltd. is a global provider of compact network solutions and services that
offer the most innovative, cost effective and scaleable network architectures allowing operators to "reach the
unreached." interWAVE's solutions provide economical, distributed networks that minimize capital expenditure
while accelerating customers' revenue generation. These solutions feature a product suite for the rapid and simple
deployment of end-to-end compact cellular systems and broadband wireless data networks. interWAVE's highly portable
mobile, cellular networks and broadband wireless solutions provide vital and reliable wireless communications
capabilities for customers in over 50 countries. interWAVE's U.S. subsidiary is headquartered at 2495 Leghorn
Street, Mountain View, California, and can be contacted at iwv.com or at (650) 314-2500.
Forward Looking Statements
This news release contains forward-looking statements that are subject to known and unknown risks and uncertainties
that could cause the results of interWAVE Communications International, Ltd. to differ materially from management's
current expectations. These risks and uncertainties include, but are not limited to, the risks relating to
interWAVE's history of losses, the expectation of future losses, potential noncompliance with Nasdaq National
Market continued listing requirements, potential lack of liquidity and capital resources, reliance on a small number of
customers, complexity of products, difficulties in introducing new or enhanced products, compliance with regulations and
evolving industry standards, long sales cycles, intense competition, management of global operations, the ability to
retain and motivate key employees, and acquisition related risk factors including potential asset impairment, dilution
of shares outstanding, cash outflow for acquisitions, increases in debt absorbed and potential post-acquisition employee
retention, as well as the Risk Factors discussed in the filings and reports made from time to time by interWAVE with the
Securities and Exchange Commission. interWAVE Communications International, Ltd.
CONTACT: Cal R. Hoagland, SVP & CFO of interWAVE, +1-650-314-2533, crhoagland@iwv.com
Web site: http://www.iwv.com/
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