AARO Broadband Wireless Announces Management Recapitalization Plan.

Business Editors

OKLAHOMA CITY--(BUSINESS WIRE)--Aug. 6, 2001

AARO Broadband Wireless Communications, Inc. (OTC: AARW) today announces that a management recapitalization plan has been signed with a group of investors to provide new funding and strengthened management for the company.

As a result of this agreement, AARO will immediately offer services to new customers in the Stroud, Tulsa and Oklahoma City markets. AARO will begin operations with the Oklahoma Municipal League, establishing service for Durant, Oklahoma, as the first of the more than 400 member cities. The recapitalization funds will provide AARO with a source of additional operating capital.

In an effort to diversify and strengthen the management of the company, all officers and four members of the board of directors have resigned. AARO's remaining board members have selected Greg D. Owens, Lonnie C. Rogers and Jerry B. Thetford as new additions to the board. These new external members bring years of solid business experience to the company.

The new board of directors has appointed Jerry B. Thetford as President and CEO. Jerry comes to AARO with extensive engineering, manufacturing and executive management experience in the highly technical aerospace industry. Thetford, after holding technical and project management positions on the Apollo and Space Shuttle programs, was selected Plant Manager of the Rockwell International plant in McAlester, Oklahoma. The McAlester plant built EMI shielded cable harnesses for the B-1 bomber and Minute Man missile. He was plant manager for Rockwell's Mingo facility in Tulsa that employed over 2,000 people, and most recently served as Vice President of Operations for Beal Aerospace.

The new board of directors also acted to retain Michael W. Canfield and J. Michael Erhart as corporate officers. They will provide continuity through the change in management with Canfield continuing to serve as Chief Financial Officer and Erhart serving as Chief Technology Officer. In addition, Canfield will serve as the corporate Secretary and Treasurer.

AARO's former officers have returned approximately 13,000,000 shares of common stock to the company's treasury to provide equity for this investment. Return of the shares allows AARO to receive these funds without any dilution of the shares of common stock outstanding. After completion of this funding, AARO will have almost 3,000,000 returned shares still available for future funding or other operational purposes. After giving effect to the returned shares, AARO's outstanding shares of common stock remains at approximately 54,000,000 shares.

In addition to returning stock, the officers have forgiven over $200,000 of debt previously loaned to AARO. Several of the investors also forgave debts to AARO as part of this agreement.

In addition to the infusion of funds and management changes, AARO has been able to make a dramatic reduction in excess of 75% in its operating capital requirements. This was achieved through a reduction in force of approximately 25 positions, minimizing overhead costs and the sale of non-essential assets.

AARO's original business plan called for deployment of fixed-wireless services in 33 markets in the western United States. AARO has refocused its operations in Oklahoma, Missouri and Texas, with special emphasis on a contract with the Oklahoma Municipal League to provide wireless services throughout Oklahoma.

About AARO

AARO Broadband Wireless Communications, Inc. is an emerging integrated telecommunications services provider. Operating in Oklahoma, Missouri and Texas, AARO provides fixed-wireless connectivity, Internet access and Virtual Private Networks at speeds up to 100 Mbps. AARO's New World services, including IP telephony and videoconferencing services, are delivered via a highly secure, carrier-class IP network. For additional news and information, please visit AARO at www.aarowireless.com.

This document includes forward-looking statements, made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identifiable by the use of words such as "believe," "expect," "intend," and other words of similar nature. These statements are based on management's current expectations, estimates and projections that are subject to risk and uncertainties, including, but not limited to, success of negotiations, availability of financing, political currency and regulatory, competitive and technological developments. Consequently, actual results could differ materially from those forward-looking statements. AARO Broadband Wireless Communications, Inc. does not undertake, and specifically disclaims, any obligations to update forward-looking statements, which speak only as of the date made.