Adaptive Broadband Agrees to Sell EFData Division to Comtech Telecommunications Corp.Business Editors and Technology Writers SUPERCOMM 2000 Booth No. 6539 SUNNYVALE, Calif.--(BUSINESS WIRE)--May 30, 2000 Adaptive Broadband Corporation (TM) (Nasdaq/NM:ADAP ADAP AIDS Drug Assistance Program ADAP Alcohol and Drug Awareness Program ADAP Agricultural Development in the American Pacific ADAP Autodiscovery/Autopurge ADAP Airport Development Aid Program ADAP Advanced Digital Antenna Production ) announced that it has entered into an agreement with Comtech Telecommunications Corp. (Nasdaq/NM:CMTL CMTL Chief Military Training Leader CMTL Center for Mathematics, Teaching and Learning ) to sell its EFData division for $61.5 million in cash, plus Adaptive Broadband will retain certain current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of the business totaling approximately $6.3 million, for an estimated total transaction value of $67.8 million. Adaptive Broadband expects to recognize a net book gain on the divestiture and expects to retain substantially all of the cash due to the company's deferred income tax benefits. Two other divisions are in the process of being divested and the results of all three transactions will be combined and reported. The EFData transaction, which is expected to close by June 30, 2000, is subject to normal conditions
Focus on Wireless Broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 Access: AB-Access(TM) Initiatives on Track "Opportunities for AB-Access have grown since January 2000, when we announced our intent to divest our legacy businesses, which validates our need to focus solely on what we believe is a market that will exceed $100 billion in aggregate over the next 10 years. We are generating revenue, we are expanding our sales and marketing team to aggressively pursue this emerging market and we are introducing new products for the MMDS (Multichannel Multipoint Distribution Service or Microwave Multipoint Distribution Service) A digital wireless transmission system that works in the 2.2-2.4 GHz range. , LMDS (Local Multipoint Distribution Service) A digital wireless transmission system that works in the 28 GHz range in the U.S. and 24-40 GHz overseas. It requires line of sight between transmitter and receiving antenna, which can be from one to four miles apart and European 3.5 GHz markets. And, we are on track to achieve profitability in 2001. In short, we are meeting the commitments of our business plan, and the first divestiture of the legacy businesses is one more step in executing against our long-term strategic plan," commented Donna S. Birks, executive vice president and chief financial officer of Adaptive Broadband. About AB-Access The AB-Access fixed wireless broadband product bridges the last mile, replacing the local loop for business and residential subscribers. It offers data transmission at rates up to 25 Mbps, which provides the capability for real-time video conferencing See videoconferencing. (communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. , transmission of full streaming video, web surfing, and transmission of data files -- all simultaneously and over one connection. Product bandwidth is planned to expand to 100 Mbps in 2000. AB-Access technology spans the frequency range from 2 to 42 GHz. The first releases for AB-Access are for applications using the 5 GHz U-NII U-NII Unlicensed National Information Infrastructure (bandwith for wireless LAN Networks by FCC 5.15-5.35 GHz and 5.75-5.825 GHz) (Unlicensed National Information Infrastructure) and 2.5 GHz MMDS (Multi-channel, Multipoint Distribution Service) frequency bands. Adaptive Broadband recently announced a 27.5-31.3 GHz LMDS (Local Multipoint Distribution Service LMDS is a broadband wireless access technology governed by the IEEE and is outlined by the 802 LAN/MAN Standards Committee through the efforts of the IEEE 802.16.1 Task Group. LMDS commonly operates on microwave frequencies across the 26GHz and 29GHz bands. ) version of AB-Access and a 3.5 GHz version for the European market. Adaptive Broadband will be giving live point-to-multipoint demonstrations of the U-NII, MMDS, LMDS and 3.5 GHz AB-Access products at the SuperComm trade show in Atlanta, June 6-8 in Booth No. 6539. About Adaptive Broadband Adaptive Broadband (www.adaptivebroadband.com) is a data networking solutions company that is developing leading-edge technology for the deployment of broadband wireless communication over the Internet. Its AB-Access product is a leading commercial choice for fixed broadband wireless communication. The foregoing includes forward-looking statements, such as the anticipated growth of fixed wireless broadband markets, that involve risks and uncertainties. Actual events or results may differ materially from those suggested by the forward-looking statement. Factors that could cause actual events or results to differ materially include, but are not limited to, fluctuations in quarterly results, delays in receipt of orders or in the shipment of products, delays in the development of telecommunications and Internet markets and delays in product enhancements. For a more detailed discussion of these and other factors, see "Risk Factors" contained in Adaptive Broadband's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended June 30, 1999. |
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