AirNet Communications Announces Restructuring.

Business Editors/Technology Writers

MELBOURNE, Fla.--(BUSINESS WIRE)--Aug. 28, 2001

AirNet Communications Corporation (Nasdaq:ANCC) today announced a further reduction in its workforce as well as the closing of a facility in New York. These steps were taken to cut costs and facilitate the company's strategic redirection in light of the industry-wide downturn in the communications market. AirNet has recently appointed a new CEO who is re-focusing the company on the fundamentals that led to its prior successes.

The spending slowdown of communications providers has led to losses and staff reductions for many other equipment manufacturers worldwide including leaders such as Nortel, Lucent, Cisco, Nokia, Siemens and Alcatel. This reduction in staff at AirNet eliminates jobs at the Melbourne headquarters and the Long Island, New York office. Over 45% of the company's employees will be affected by the restructuring, which will reduce overall expenses by approximately 40%. The Company anticipates that it will take a restructuring charge, not yet determined, in the third quarter of fiscal 2001. Company officials stated sudden and unforeseen changes in our business conditions meant that staff reductions were necessary.

"We have taken these difficult steps to preserve AirNet's health and core strengths because we simply had no choice. Opportunities that were expected to develop have not," President and CEO Glenn Ehley stated. "We have pared back to 120 employees, the size when we were most successful at acquiring new customers, and we believe that we can now continue to develop customer opportunities while we prepare for the expected resurgence of the market. We're focused on taking what made us successful and delivering it to our existing customers and expanding that customer base."

Separately, Tom Schmutz, one of the group of engineers first employed by AirNet and inventor of nine of AirNet's issued patents, has been named Vice President of Engineering while Terry Williams, also one of the original AirNet engineers and inventor of ten of AirNet's issued patents, has been named Chief Technical Officer. Both gentlemen, who have additional patents pending, worked at the Harris Corporation before joining AirNet. Also, Joe Gerrity has been named CFO. Prior to joining AirNet, where he has been Director of Financial Planning, he was Controller at the Harris Corporation Semiconductor - Military & Aerospace Division. Additionally, Bennet Wong has been named Vice President of Technical Sales and Business Development. Prior to joining AirNet, where he has served in a variety of technical sales positions of increasing responsibility, Mr. Wong was with Ericsson. "These proven leaders reflect the can-do attitude of the entire AirNet Organization as we move ahead," Ehley said.

About AirNet Communications

AirNet Communications Corporation is a leader in wireless base stations and other telecommunications equipment that allow service operators to cost-effectively and simultaneously offer high-speed wireless Internet and voice services to mobile subscribers. AirNet's patented broadband, software-defined AdaptaCell(TM) base station solution provides a high-capacity base station with a software upgrade path to the wireless Internet. The Company's AirSite(R) Backhaul Free(TM) base station carries wireless voice and data signals back to the wireline network, eliminating the need for a physical backhaul link, thus reducing operating costs. AirNet has 73 patents issued or filed and has received the coveted World Award for Best Technical Innovation from the GSM Association, representing over 400 operators around the world. More information about AirNet may be obtained by calling 321.984.1990, or by visiting the AirNet Web site at http://www.airnetcom.com.

Safe Harbor Statement Under the Private Securities Litigation 

Reform Act of 1995

The statements contained in this press release that are not historical information are forward-looking statements that relate to future events or our future financial performance, including statements regarding our expectations, beliefs, plans, estimates, intentions or strategies for the future. Forward looking statements include statements regarding the transition and evolution to high-speed data and wireless Internet services, future sales to customers, future market conditions and new product deployment plans. All forward-looking statements included in this release are based upon information available to AirNet Communications Corporation as of the date hereof and we assume no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause our actual results to differ materially from those projected. Potential risks and uncertainties include, but are not limited to, reduced demand in our industry, our lengthy and variable sales cycle, intense competition, retention of key employees, government regulation, our reliance on a limited number of suppliers, unstable financial markets, and product errors and defects. These and other risks are discussed in Company filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2000.

AirNet(R) and AirSite(R) are registered trademarks with the U.S. Patent and Trademark Office. The stylized AirNet mark, AdaptaCell(TM), Super Capacity(TM), Backhaul Free(TM), and We're Ready for Anything(TM) are trademarks of AirNet Communications Corporation. Other names are registered trademarks or trademarks of their respective companies or organizations.