ARC Wireless Solutions Revenue Increases 735% to $8.1 Million.

Business Editors/High-Tech Writers

WHEAT RIDGE, Colo.--(BUSINESS WIRE)--May 14, 2001

ARC Wireless Solutions Inc. (OTCBB:ARCS) today announced financial results for the quarter ended March 31, 2001.

Net sales for the period increased 735% to $8,099,000 as compared with $970,000 for the same period last year. The increase in revenues is primarily attributable to the acquisition of Winncom Technologies Inc. and The Kit Company.

The Company's net loss increased to $789,000 as compared to $104,000 for the same period last year. $560,000 of the net loss consists of expenses that were related to the Kit Company acquisition and subsequent related litigation or to compensation and severance of former employees. An additional $205,000 of the net loss represents non-cash amortization expense for goodwill acquired in the Winncom Technologies acquisition.

"We are encouraged with our increase in revenues for the first quarter," stated Gregory Raskin, President and CEO of Winncom Technologies, Inc. "Despite reports that some fixed wireless solutions have experienced a downturn recently, our business continues to expand as wireless solutions offered by Winncom are immediate solutions of choice for high-speed data retrieval by many service providers," Mr. Raskin added.

"Antennas America continues to position its business to take advantage of the growth in antenna requirements related to the increase in both the U.S. and International wireless markets. The legacy vehicle recovery and mobile business has continued to meet forecasts and we have developed a new mobile antenna that combines the cellular/PCS and GSM frequencies that will be introduced in the third quarter. New antenna products for Broadband wireless, GPS and Digital TV were successfully launched. Although the MMDS segment has not met expectations due to technology and regulatory issues, the shortfall has been more than offset by sales of the 2.45GHz ISM antennas. As previously reported, the efforts in GPS antennas have resulted in two new contracts and the Telematics business continues to expand," stated Burton Calloway, Vice President of Business Development.

The Company recently announced several new contracts including Winncom's partnership with Prairie iNet to roll out the largest fixed wireless infrastructure in the Midwest, and Antennas America's contracts with Honeywell EMS and Oztrak to supply its GPS product.

"We continue to energize our vision to be a diversified wireless solutions provider, and we are confident in our current position as circumstances continue to change in the wireless marketplace," stated Randall P. Marx, Chief Executive Officer of ARC Wireless Solutions, Inc. "Our flexibility has proven invaluable as business has slowed in the MMDS market for all suppliers but recent studies show that the 802.11 2.4GHz and 5GHz fixed wireless revenues will increase from the current rate of $900 million in 2001 to $5 billion by 2005. As our business continues to grow, we are concurrently developing products for other developing wireless markets including 3.5GHz and 5.1GHz wireless spectrum, satellite, GPS and digital TV," added Mr. Marx.

About ARC Wireless Solutions, Inc.

ARC Wireless Solutions, Inc. is a wireless technology company that is

involved in marketing, distribution and servicing, as well as selective design and manufacturing, of a broad range of component and network solutions in support of wireless applications. The Company's wireless solutions are marketed through the Company's internal sales force, OEMs, numerous reseller distribution channels, retail and the Internet to support network deployment in the growing domestic and global wireless markets. ARC Wireless Solutions, Inc., together with its Antennas America Division, is headquartered in Wheat Ridge, Colorado. The Company's Winncom Technologies Corp. subsidiary is located in Solon, Ohio, and its Starworks Wireless, Inc. subsidiary, doing business as The Kit Company, is located in Atlanta, Georgia. 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.thekitcompany.com.

This is not a solicitation to buy or sell securities and does not purport to be an analysis of the Company's financial position. This Release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements and assumptions upon which forward-looking statements are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. See the Company's most recent Quarterly Report on Form 10-QSB and Annual Report on Form 10-KSB for additional statements concerning important factors, such as demand for products, manufacturing costs and competition, that could cause actual results to differ materially from the Company's expectations.