ARC Wireless Reports Record Revenues and Earnings for 2004.

WHEAT RIDGE, Colo. -- ARC Wireless Solutions, Inc. (OTCBB: ARCS) today announced operating results for the fiscal year ended December 31, 2004. Net sales were $37,400,000 as compared with net sales of $30,600,000 for 2003. The 22% increase in revenues is attributable to an increase of $5,900,000 in Winncom Technologies sales, a $500,000 increase in the Wireless Communications Solutions Division sales and a $400,000 increase in Starworks Wireless sales.

Gross profit margin increased from 16.3% for the period ended December 31, 2003, to 18.2% for the period ended December 31, 2004. The 11% increase in gross profit margin is primarily due to the higher margins of the Wireless Communications Solutions Division which increased from 35.6% for the period ended December 31, 2003, to 43.5% for the period ended December 31, 2004.

For the period ended December 31, 2004, the Company had a net profit of $688,000 as compared with a net loss of $285,000 for the period ended December 31, 2003. The profit in 2004 is attributable to the 22% increase in net sales together with an 11% increase in gross profit margin and an improved cash flow which allowed Winncom Technologies to take advantage of vendor early payment discounts.

Randall P. Marx, Chief Executive Officer commented: "We are very pleased with the overall performance of our Winncom Technologies subsidiary which generated a record $30 million in revenue in 2004 and the improved sales margins of our Wireless Communications Solutions Division. The improvement in our antenna division occurred despite a temporary slowdown in base station sales from March 2004 through November 2004 due to the sale of one of our major base station antenna customers to another cellular carrier."

Mr. Marx added: "Demand for our wireless products improved during the year through continued domestic and international demand for Winncom Technologies' value added services. Although antenna competition is very aggressive, our Wireless Communication Solutions Division is up to the challenge as we have expanded our research and development team, which is working on the development of new designs of innovative, proprietary antenna solutions intended to set us apart from the competition. Sales from our Starworks Wireless cable subsidiary are improving as we take steps to bring this subsidiary to profitability as quickly as possible by strengthening our sales organization while continuing to support our internal and customers' wireless sales efforts."

About ARC Wireless Solutions, Inc.

ARC Wireless Solutions, Inc. is involved in selective design, manufacturing and marketing, as well as distributing and servicing, of a broad range of wireless components and network products and accessories. The Company develops, manufactures and markets proprietary products, including base station antennas (for cellphone towers) and other antennas, through its Wireless Communications Solutions Division; it is a value added distributor of Wi-Fi(R) and other wireless networking products through its Winncom Technologies Corp. subsidiary; and it designs, manufactures and distributes cable assemblies for cable, satellite and other markets through its Starworks Wireless Inc. subsidiary. The Company's products and systems are marketed through the Company's internal sales force, OEMs, numerous reseller distribution channels, retail, and the Internet. ARC Wireless Solutions, Inc., together with its Wireless Communications Solutions Division and its Starworks Wireless subsidiary, are headquartered in Wheat Ridge, Colorado. The Company's Winncom Technologies Corp. subsidiary is located in Solon, Ohio. For more information about the Company and its products, please visit our web sites at www.arcwireless.net, www.antennas.com, www.winncom.com and www.starworkswireless.com.