Just the beginning.......Wi-LAN SIGNS NEW AGREEMENTS TO EXPAND WIRELESS INTERNET ACCESS ROLLOUT IN EUROPE:
Telia's Successful High-Speed, Point-to-Multipoint Network and Wireless Matrix, a new distributor, focus deployment and
product sales to deliver volumes in shorter time period.
STOCKHOLM, SWEDEN and CALGARY, ALBERTA-- (March 2, 2000):
Wi-LAN, an innovator of high-speed wireless data/Internet communications, announced today two new long-term
agreements to expand its broadband wireless Internet access into Europe. Wi-LAN signed a 2-year, supply agreement with
Telia GlobalCast Internetworking AB ("Telia"), a Swedish wireless Internet access provider who has forecasted to purchase
U.S. $16 Million of Wi-LAN wireless product. This supply agreement supercedes the distribution agreement announced on
October 7, 1999. Wi-LAN has also signed a one-year distribution agreement with Wireless Matrix AB ("Wireless Matrix"), a
Swedish distributor of wireless data communications products, agreeing to purchase a minimum of US $12 Million worth of
Wi-LAN product in 2000, having already signed its first order for US $6 million.
Telia is a major corporate client in the Nordic region and Wireless Matrix will take on the challenge of delivering Wi-LAN
product through its distribution channels in selected countries. This announcement focuses on covering these selected
target areas and on meeting or beating our contract goals.
"We are delighted that a public carrier such as Telia has confirmed the performance of our product and we are pleased
with the targets Telia has set for deployment over the next two years," says Bill Hews, Wi-LAN president and COO. "Taken
in combination, these two agreements position us to meet and beat the business levels expected from the earlier Telia
agreement with increased reliability on timing."
European success in high-speed wireless Internet access:
Telia and Wi-LAN are providers of high-speed wireless Internet access offering data transfer rates as high as 25Mbps, the
two companies have already had success with Telia's high-speed wireless Internet service CityNet in Stockholm, Gothenberg
and Malmo. To meet and exceed the planned deployment rate for the next two years, Telia and Wi-LAN plan to focus on
delivering service in Sweden, Finland and Denmark as Telia has confirmed customer orders of US $1 Million. Telia will offer
three levels of wireless Internet services, depending on specific needs, to the small office/home office and corporate business
users. Wi-LAN will supply Telia with technical design, products and training for network implementation. The system uses a
series of nodes, base stations and antennas to transmit data using Internet protocols -- Wi-LAN's Ethernet bridges form the
core of these nodes. Future implementations will use Wi-LAN's I.WiLL access point, a W-OFDM (Wideband Orthogonal
Frequency Division Multiplexing) product, delivering speeds of 30 Mbps. Telia and Wi-LAN are currently expanding the
network throughout Sweden and are aiming for full coverage of the Nordic markets by mid-2000.
"The Telia offering in Sweden has been so successful that we feel the time is right to enter the European and U.S. markets,"
says Osten Makitalo, CEO of Telia. "Moreover, its success is a direct result of the partnership with Wi-LAN."
Under the terms of the two-year supply agreement, Telia has forecasted that it will purchase U.S. $5,000,000 worth of
Wi-LAN
product in 2000 and U.S. $11,000,000 worth of Wi-LAN product in 2001 for their wireless networks in the Nordic countries.
Telia stated an interest to act as a public network operator outside the Nordic Countries in Europe as well as in the United
States and would like to purchase Wi-LAN product in connection with this expansion. Wi-LAN has agreed to sell products
to Telia when these sales are not in conflict with Wi-LAN's existing activities in these countries.
Wi-LAN & Wireless Matrix:
Wi-LAN has also entered into a US $12 Million, one-year distribution agreement with Wireless Matrix, based in Stockholm,
Sweden, where Wi-LAN has appointed Wireless Matrix as a distributor of Wi-LAN's wireless communication products in
selected European countries. The term of this agreement may be extended for a further period of time without any break in
continuity.
Wireless Matrix has confirmed its first customer with US $6 Million worth of Wi-LAN product to date.
"We are excited to be distributing Wi-LAN's products in Europe," says Hans Johansson, Wireless Matrix President. "We
have brought momentum into the company with our impressive first contract and have the business plan to keep the ball
rolling." |
