Adaptive Broadband Agrees to Sell MRC Division to Vislink plc.Business Editors SUNNYVALE, Calif.--(BUSINESS WIRE)--June 27, 2000 ADAPTIVE BROADBAND CORPORATION (Nasdaq: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 Vislink plc (formerly Silvermines Group plc) to sell its Microwave Radio Communications division for $19.2 million in cash. Vislink is a UK-based manufacturer of broadcast and telecommunications equipment. The company announced recently that it had entered into agreements to sell two other divisions. Agreements have been reached with Comtech Telecommunications Corp. to sell the EFData satellite modem division for a total transaction value of $67.8 million, and with Mosely Associates to sell the Microwave Data Systems Microwave Data Systems, Inc. is a company that makes wireless communications equipment for the industrial market space. The company is often referred to using the acronym MDS. (MDS MDS, n See temporomandibular pain-dysfunction syndrome. MDS 1 Maternal deprivation syndrome, see there 2 Myelodysplastic syndrome, see there ) division for $42.0 million. It is planned that the results of all three transactions will be combined and reported. The company expects to recognize a net book gain on the combined divestitures and to retain substantially all of the cash due to the company's deferred income tax benefits. The MRC See Maximum return criterion. transaction, which is targeted to close in July 2000, is subject to normal conditions, including governmental reviews and approval by the shareholders of Vislink. MRC designs, develops and manufactures a wide range of microwave radio products for the television broadcast and electronic newsgathering news·gath·er·ing adj. Of, relating to, or involving the research and reportage of news: a worldwide newsgathering operation. news markets. Next Step in Strategic Plan: Expanding Market Coverage "With the divestiture of our three legacy businesses nearly behind us, we can focus on continuing to form the types of strategic partnerships we need to maintain our lead in the emerging wireless broadband market. Continuing to develop distribution channels is paramount to addressing a global market of this enormity. We are pleased with our progress to date in achieving these alliances and look forward to the further expansion of our market coverage in the near future," 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. Combining Quality of Service and Time Division Duplexing, it offers data transmission at rates up to 25 Mbps -- providing the capability for real-time video conferencing, 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. Currently positioned as a fixed offering, portable versions of AB-Access are planned in 2000. AB-Access technology spans the frequency range from 2 to 42 GHz. While 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), 2.5 GHz 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. (Multi-channel, Multipoint Distribution Service) and 3.5GHz (International WLL See wireless local loop and PHS-WLL. ) products are also available. Additionally, Adaptive Broadband recently announced an 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 (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. About Adaptive Broadband Adaptive Broadband (www.adaptivebroadband.com) designs, develops and manufactures broadband wireless access solutions. Providing high-capacity, last-mile point-to-multipoint data links in the MMDS, 3.5 GHZ (WLL), U-NII (5 GHz license-free) and LMDS frequencies, the company's AB-Access product is being deployed by carriers such as ISPs and CLECs, as well as traditional telecommunications providers. The foregoing includes forward-looking statements, such as the company's potential success in product development, 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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