5G Wireless Communications Reports 2004 Operating Results -- Revenue Increases 289% over 2003.

MARINA DEL REY, Calif. -- 5G Wireless Communications, Inc. (OTCBB:FGWC), a BDC (Business Development Company) that will be making strategic investments in companies with innovative applications in the information and communications technology sectors, today reported its 2004 financial results.

For the twelve months ended December 31, 2004, the company's revenue increased approximately 289% to $651,450, compared to $167,302 for the year ended December 31, 2003. The improvement reflects accelerated broadband wireless equipment sales as a result of increased brand awareness and direct sales activity, particularly in the university campus market. This trend is expected to continue as more university campuses look to upgrade their infrastructures, municipal market needs increase, and other campus-type environments seeking low-cost wireless solutions, including healthcare, recreation and shipping, are reached through direct sales and channel partner marketing efforts.

Net loss for 2004 totaled $4,989,200, increasing approximately 131% from a net loss of $2,159,694 for 2003. The increase was attributable to higher operating costs during the year, due to increased legal and accounting costs associated with financing and conversion to BDC status.

The portfolio company became operational on January 1, 2005, and 2004 results reflect only the parent company prior to full BDC conversion.

"2004 was a breakthrough year for us in many ways," stated Jerry Dix, Chairman and CEO of 5G Wireless Communications. "First, we received a major funding commitment which enabled us to consider, and then execute, a transformation of the organization into a BDC company with a newly created portfolio company, 5G Wireless Solutions, Inc. Next, we were able to attract several high-profile independent board members from companies like Cisco and Buy.com, along with one of the co-founders of NASDAQ. The Company will now be evaluating several opportunities that fulfill the objectives established by our investment committee to enhance the portfolio and create shareholder value through strategic investments in synergistic hardware or software companies in information and communications technologies."

"The 5G Wireless Solutions brand experienced an encouraging year with growth on many fronts," Mr. Dix continued. "Several talented individuals, including Dr. Robert McNamara, CTO, who holds over 20 patents in the wireless space, and Carl Weisman, Sr. Engineer, who is the author of the standard industry textbook, 'The Essential Guide to RF & Wireless,' joined the company. Our next generation, 'outside/in,' Campus-Wide Area Network(TM) (C-WAN) Base Stations, designed to extend coverage with less hardware, is in alpha test mode now and soon to enter beta. We saw our 'less is more' value proposition in action as we expanded our networks throughout the University of California and Cal State University systems. Our sales pipeline now includes dozens of new campuses which we've learned take about 6 months to close. We also satisfied several new customers with our low Total Cost Ownership (TCO) promise, including new municipal installations in Pleasanton, Calif., and New Smyrna Beach, Fla. Initial shipments to our international partners in West Africa and Malaysia have begun as well. We augmented our direct sales force with an aggressive Authorized Channel Partners program, an initiative which has resulted in a number of successful working relationships with VARs and WISPs, including Northern Pacific Wireless, Springnet, O'Connor Informatics, M Gravity, VIP Network Holdings, SRS Industries, Black DOG Services and Freedom Online."

"Finally, our high performance/low cost solutions found their way into a variety of new campus-like environments we intend to pursue with vigor," he added. "The success of the DeWitt Nursing Home installation in NY will provide an entree into the healthcare market, and our recreational networks at Mazda Raceway, Calif., and Lake Pleasant RV Park, Ariz., suggest other new opportunities. We will also be looking at ports and shipping as a huge potential market as RFID and national security concerns drive the need for wireless networks. It's going to be a busy year for us as we close several big contracts that entered the pipeline late last year, and we're anticipating cash flow breakeven by year-end 2005."

About 5G Wireless Communications, Inc.

5G Wireless Communications, Inc. (OTCBB:FGWC), located in Marina del Rey, Calif., is a BDC (Business Development Corporation) developing a diverse portfolio of companies with innovative applications in the information and communications technology sectors. Holdings currently include 5G Wireless Solutions, Inc., a portfolio company, which develops and markets broadband wireless networks for university and municipal campuses, and provides Wi-Fi networking equipment for a select group of VARs and WISPs.

For additional information, please visit www.5gwireless.com, or call 800-916-1611.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited, to those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

All product or service names mentioned herein are the trademarks of their respective owners.