ARC Wireless to Reduce Costs and Restructure Starworks Wireless Subsidiary.

Business Editors

WHEAT RIDGE, Colo.--(BUSINESS WIRE)--Feb. 22, 2001

ARC Wireless Solutions, Inc. (OTCBB:ARCS), today announced the streamlining of the management of ARC Wireless Solutions, Inc. and the restructuring of its Starworks Wireless subsidiary. These efforts will significantly reduce the Company's general and administrative costs.

Effective immediately, Randall P. Marx will replace Glenn A. Befort as Chief Executive Officer of ARC Wireless Solutions, Inc. and Thomas Reed, the Company's Chief Financial officer, will be replaced using the Company's existing accounting staff. Mr. Marx served as Chief Executive Officer of the Company from 1993 until July 2000. Since July 2000, he has been the Company's Director Of Acquisitions. Gregory Raskin, President of the Company's Winncom subsidiary, has been elected to replace Mr. Befort on the Company's Board of Directors.

"I am very excited as well as pleased that the Board of Directors has the confidence in my ability to lead the Company," stated Randall P. Marx. "I want to thank Mr. Befort and Mr. Reed for their service to the Company and their efforts in helping to develop the restructuring plan. I consider it a privilege to have been able to work with both of them," Mr. Marx added.

"I welcome the opportunity to serve the shareholders of the Company in my additional capacity as a director," stated Gregory Raskin. "I look forward to working with Mr. Marx and the rest of the team to take the Company to the next level."

Burton Calloway will remain Vice President of Business Development. He will initially focus on expanding on the presence of the Company's Antennas America's division in the various markets the Company is focusing on, including MMDS, Bluetooth and Home RF. Additionally, Mr. Calloway will be proactive in understanding market needs and translating those needs to the operating business units. Richard L. (Andy) Anderson's focus will be on the Antennas America division, as well as handling investor relations.

The Company also announced today the termination of David McConnell as President of Starworks Wireless, a.k.a. The Kit Company, a wholly owned subsidiary of the Company. The Company will seek a replacement for Mr. McConnell but in the interim will manage The Kit Company through its Antennas America division.

ARC Wireless acquired StarWorks in September 2000 from Mr. McConnell and his wife for $1.5 million cash and 1,959,499 shares of the Company's restricted stock. The Company currently is involved in litigation with Mr. and Mrs. McConnell and other parties, with the Company claiming either for the transaction to be reversed or for the McConnells to pay damages for their alleged misrepresentations. The McConnells are also claiming damages from the Company for alleged misrepresentations by the Company. At this time the Company has withheld all of the 1,959,499 shares of the Company's stock and $500,000 of the cash portion of the purchase price. The McConnells have forfeited the $500,000 and returned an additional $200,000 of the cash portion of the purchase price prior to commencement of the litigation.

With the changes mentioned above and others being made, the Company estimates a cost savings to the Company in excess of $500,000 per year. "It is the objective of the Company to reach profitability as soon as possible and to bring increased value and communication to its shareholders," stated 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 subsidiary is located in Solon, Ohio, and its Starworks Wireless 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.