AirNet Communications Receives $1M Government Subcontract; Push-to-Talk over Cellular Capability Ordered for the RapidCell Base Station.

MELBOURNE, Fla. -- AirNet Communications Corporation (Nasdaq:ANCC), the technology leader in software defined base station products for wireless communications, today announced that it has signed a subcontract with an existing, undisclosed OEM reseller in the amount of approximately $1M for RapidCell(TM) base station equipment including "Push-to-Talk Over Cellular" (PoC) capability, related common equipment and handsets. The network will provide the Government end user with a secure wireless communications system, with both voice and high-speed data capability, to support homeland defense applications.

"We continue to execute on our strategy of developing OEM channels for the sale of RapidCell base stations to the Government communications market," said Glenn Ehley, President and Chief Executive Officer for AirNet Communications. "Each of our OEM resellers integrates our RapidCell base station into their own product offering, creating a customized wireless communications solution tailored to address the specific needs of their end users."

In addition to PoC capability, the RapidCell base station will include AirNet's iBSS(TM) technology. With iBSS technology, an end user can directly connect the RapidCell base station to a mobile switching center (MSC) via Internet Protocol over the well established "A" interface thereby eliminating costly network elements and reducing overall product footprint.

"Our objective is to provide a programmable, easily reconfigurable and flexible communications system," said Terry Williams, Vice President and Chief Technical Officer for AirNet Communications. "The RapidCell base station satisfies a critical need in the Government communications community for a programmable radio allowing for ease of upgrades, interoperability and fast deployment when and where needed."

About AirNet

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 data and voice services to mobile subscribers. AirNet's patented broadband, software-defined AdaptaCell(R) SuperCapacity(TM) adaptive array base station solution provides a high-capacity base station with a software upgrade path to high-speed data, utilizing ArrayComm, Inc.'s IntelliCell(TM) adaptive array algorithms. The Company's RapidCell(TM) base station provides government communications users with up to 96 voice and data channels in a compact, rapidly deployable design capable of processing multiple GSM protocols simultaneously. 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 69 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 visiting the AirNet Web site at http://www.airnetcom.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Certain statements in this news release may constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 (the Reform Act), Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities and Exchange Act of 1934. These forward-looking statements may relate to anticipated financial performance, management's plans and objectives for future operations, business prospects, market conditions, financial forecasts and other matters. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as "anticipate," "believe," "hope," "estimate," "expect," "intend," "plan" and "objective" and other similar expressions. Readers should not place undue reliance on the forward-looking statements contained in this news release. Such statements are based on management's beliefs and assumptions and on information currently available to management and are subject to risks, uncertainties and changes in condition, significance, value and effect. Such risks include the risk that the market may not accept AirNet products, our lengthy and variable sales cycles could cause operating difficulties and cash flow issues, and intense competition may prevent us from ever achieving profitability. If we are unable to raise sufficient new additional capital or to generate sufficient new sales, we may not be able to support changing protocols and standards, or continue to operate as a going concern. These and other risks are detailed in reports and documents filed by AirNet to the United States Securities and Exchange Commission. Such risks, uncertainties and changes in condition, significance, value and effect, many of which are beyond AirNet's control, could cause AirNet's actual results and other future events to differ materially from those anticipated. AirNet does not, however, assume any obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

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