MobileMonday Global

^{Performance incentive reaches up to USD 135 million} NextWave buys IPWireless for USD 100 million

NextWave Wireless Inc., a global provider of mobile broadband products and technologies, today announced that it will acquire IPWireless Inc., a leading developer TD-CDMA network equipment and subscriber terminals.

IPWireless is a privately held company headquartered in San Bruno, California, with research and development facilities in the United Kingdom.

Under the terms of the agreement, NextWave will pay approximately USD 100 million at closing, consisting of USD 25 million in cash and USD 75 million in NextWave common stock. Additional consideration of up to USD 135 million will be paid based on the achievement of certain revenue milestones in the 2007 – 2009.

IPWireless has been a leading force in the development of 3GPP TDD UMTS standards, which serves as the foundation for its next-generation mobile TV and wireless broadband public-safety network solutions.

Its TD-CDMA mobile broadband technology was recently selected by New York City as part of the deployment of a citywide, public-safety wireless network.

The acquisition is expected to close in the second quarter of 2007. IPWireless is expected to operate as a wholly owned subsidiary of NextWave.

"The acquisition of IPWireless fits perfectly into our strategy of providing our customers with the most cost-effective and high-performance mobile broadband products and solutions available today. IPWireless and NextWave will work together to expand IPWireless' product portfolio to incorporate WiMAX and/or Wi-Fi technologies for those service providers and equipment vendors that require such solutions,” said Allen Salmasi, chairman and chief executive officer of NextWave Wireless.

Previously, Mr. Salmasi served as chairman and CEO of NextWave Telecom, which he founded in 1995 and subsequently sold to Verizon Wireless in 2005.

IPWireless has led the development of 3GPP TDD Universal Mobile Telecommunications Systems (UMTS) standards and currently provides customers with a wide assortment of mobile broadband products and technologies. It has announced initiatives with some of the largest service providers in the world including T-Mobile, Vodafone, Orange, Telefonica, and 3UK.

Mobile broadband networks that utilize IPWireless’ TD-CDMA technology, one of the first standards-based mobile broadband technologies in the world, have been commercially deployed in more than a dozen countries, including the Czech Republic, New Zealand, Germany, South Africa, the United Kingdom, Sweden and the United States.

Public safety and mobile TV

IPWireless’ TD-CDMA mobile broadband technology is a solution for the mission-critical wireless broadband needs of government and public service agencies including police and fire departments, public safety, and medical first responders.

In September 2006, IPWireless’ TD-CDMA mobile broadband wireless technology was selected by New York City’s Department of Information Technology and Telecommunications as part of a five-year, USD 500 million contract awarded to Northrop Grumman for the deployment of a citywide, public safety, mobile wireless network.

NextWave Wireless says in its press rel3ease that the IPWireless technology, as optimized for public safety applications, is an optimum solution for the 700MHz band plan currently under consideration by the FCC for public safety applications and offers government agencies a host of proven and field-tested performance advantages.

The IPWireless TDtv solution, based on 3GPP Multimedia Broadcast Multicast Service (MBMS), allows UMTS Operators to deliver mobile television and other multimedia services using their existing 3G spectrum and networks, without impacting their current voice and data services.

A trial of TDtv technology, recently conducted in the UK by four of the largest mobile operators in Europe, successfully demonstrated its ability to cost-effectively deliver high-quality, multi-channel broadcast services using the trial participants’ existing spectrum.

TDtv supports key consumer requirements including fast channel change times, reliable operation at high travel speeds, and seamless integration into small profile handsets.

NextWave Wireless plans to combine IPWireless technology with its PacketVideo subsidiary PacketVideo is currently providing mobile multimedia software solutions to some of the largest mobile operators throughout Europe, IPWireless will be able to deliver an even more complete and consumer-friendly TDtv solution to its service provider customers.

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