California Microwave Acquires Adaptive Broadband:
Wireless High-Speed Data, Internet Access Technology
August 21, 1998
SUNNYVALE, Calif.--(BUSINESS WIRE) via NewsEdge
Corporation -- California Microwave, Inc.
(NASDAQ/NMS:CMIC) announced today that it has
acquired U.K.-based, Adaptive Broadband, Limited.
Adaptive has acquired from the Olivetti and Oracle
Research Laboratory in Cambridge, U.K., a wireless
broadband technology which offers unprecedented data
rates over a point-to-multipoint radio link: 25 Mbps
operating in the 5.8GHz unlicensed frequency band. For
the first time, portable, low-cost wireless connections
will be available at speeds comparable to wired network
access speeds. High-speed connectivity at low-cost is
made possible by Adaptive's unique combination of
Time Division Multiple Access (TDMA) and
packet-on-demand bandwidth management, based on
asynchronous transfer mode (ATM) technology. Terms
of the transaction were not disclosed.
Strategic Acquisition; Catalyst for Accelerating Growth
In its April 23, 1998, announcement of its new strategic
direction, California Microwave indicated that it was in
the process of acquiring TDMA technology for both its
terrestrial wireless and satellite communications product
areas. Adaptive's broadband technology will enable
accelerated development of California Microwave's
next-generation products which address emerging
markets, such as Internet access, that are growing at
40% or greater. California Microwave estimates that its
addressable market for point-to-multipoint systems,
including narrowband, broadband, Local Multipoint
Distribution Systems (LMDS), and satellite will reach
$2.4 billion by 2001. According to a market research
report by Pioneer Consulting, the market for local
multipoint data services will grow to $6.5 billion by 2007.
Adaptive uniquely combines TDMA and ATM
technologies to manage bandwidth in an extremely
efficient way, and which can simultaneously support all
types of multimedia traffic: Internet, real-time video,
voice and other data. California Microwave will adopt
Adaptive's technology to extend its Terrestrial Wireless
Division's current narrowband radio products to higher
data rates, and from multiple-address to
point-to-multipoint applications. The company's EF Data
satellite communications division will incorporate the
TDMA/ATM technology into its next generation of
packet-switched, data network products.
"The significance of Adaptive's contribution to the
future of California Microwave cannot be overstated.
We identified TDMA for Internet access as our number
one technology need and have met that need with this
acquisition. Adaptive's cutting edge combination of
wireless and ATM technologies permits us to leap-frog
older technologies, propelling California Microwave
forward in our drive to be a major, in l player
high-growth markets," commented Frederick D.
Lawrence, chairman and chief executive officer of
California Microwave.
Small/Medium Businesses: Major Markets for Wireless
Broadband Access
Adaptive's initial products target Internet service
providers, competitive local exchange carriers and
alternate carriers, who will provide service to small and
medium businesses that do not have access to
broadband access services. Its products are particularly
applicable to international opportunities where wired
infrastructure does not exist or where competitive
markets are developing, such as the privatization of the
state-owned telephone company in Brazil. Adaptive is in
the final stages of product development and several U.S.
telecommunications service providers are evaluating
prototypes. Launch of the first products is scheduled for
mid-1999.
Wireless ATM Pioneers
Adaptive Broadband's scientific staff has been
developing radio ATM technologies since 1993,
capitalizing on the Olivetti and Oracle Research
Laboratory's acknowledged lead in the wireless
broadband field. Its 18 employees, many holding PhDs
in electrical engineering, report to California
Microwave's chief technology officer, Dr. Daniel L.
Scharre, who is Adaptive's chief executive officer.
Adaptive is a wholly owned subsidiary of California
Microwave.
California Microwave, Inc. ( calmike.com) is a
leading U.S. supplier of satellite earth station and
microwave radio infrastructure products and information
and collection systems. Its focus is on transmission of
high-speed data, especially for Internet traffic, via
satellite and terrestrial wireless communications.
CONTACT: California Microwave, Inc. | Stephanie M.
Day, 408/743-3429 | sday@califmicro.com | Investor
Information Line | 888/225-6789 (Toll-free) |
calmike.com | or | William Dunk Partners, Inc.
| Deborah Passik, 919/929-4100
|
