AirNet Communications Unveils Next Generation SDR Product Architecture.

MELBOURNE, Fla. -- IntelliBSS Platform Provides a Completely Integrated IP Network with Adaptive Array Technology

AirNet Communications Corporation (NASDAQ: ANCC), the technology leader in software defined base station products for wireless communications, today unveiled its next generation SDR product architecture targeted for large GSM operators with limited amounts of spectrum. The IntelliBSS(TM) is an IP-based architecture for 3GPP-compliant distributed next-generation networks.

Consisting of three main elements, as noted in the attached illustrations, the IntelliBSS includes an adaptive array integrated base station system (AA iBSS), a signaling manager and a media gateway. The IntelliBSS is being designed as an extension to AirNet's existing SuperCapacity base station incorporating adaptive array technology which went commercial in the U.S. during the third quarter of 2004; and AirNet's iBSS which shipped to government communications customers in the fourth quarter of last year. The media gateway and signaling manager are planned for commercial release in 2005 and 2006 respectively.

"Spectrum is an extremely valuable asset and expensive to acquire in today's market," said Glenn Ehley, president and CEO for AirNet Communications. "With the increased utilization of voice and high-speed data services, wireless operators are facing the serious issue of how to make the most of their existing spectrum. The IntelliBSS integrates state-of-the-art features including software defined radio and adaptive array technologies to greatly improve network capacity. We anticipate many operators will be able to increase frequency utilization by up to 500% and do so with less cell sites translating into strong capital ("cap-ex") and operating ("op-ex") expenditure savings. This technology positions AirNet to capture increased market share."

Rapidly increasing minutes of use on wireless communications networks and, more recently, increased usage of high-speed data services is creating a capacity "crunch" for wireless carriers. Wireless spectrum has become extremely scarce in many urban areas making it very expensive or impossible to add additional spectrum. Thus operators have had no alternative but to squeeze more capacity from their existing frequency allocations. Historically, wireless operators "split cells" thereby significantly increasing the number of cell sites in their network in attempting to address this problem. Cell splitting carries several disadvantages including substantial additional cap-ex for new equipment and supporting infrastructure, substantial incremental op-ex for cell site leases and backhaul, greater signal interference between more closely spaced cell sites, increased operational complexity and higher engineering and maintenance overhead. Faced with these difficult issues, wireless operators need an alternative strategy to increase the capacity of their networks and improve spectrum utilization while reducing the cost of infrastructure and operations.

"The IntelliBSS is a highly flexible architecture that distributes to individual base stations many of the network functions that were previously centralized in the base station controller (BSC) and the packet control unit (PCU)," said Thomas R. Schmutz, vice president of engineering for AirNet. "This distributed and virtual network architecture mitigates the risk of a single-point of failure at the BSC, greatly increases the overall reliability and capacity of the network and incorporates cost saving features such as IP connectivity and backhaul. In addition there will be no logical or physical bottlenecks as in a traditional legacy system. This technology is an important step forward in the evolution of GSM/GPRS/EDGE networks, preserves investment in core MSC equipment and will support VoIP, PoC, Video and other new technologies. This architecture positions AirNet nicely for the next generation because it is convergent with 3GPP IMS networks."

Visit AirNet at the 3GSM World Congress on February 14 through February 17, 2005 at Exhibit Stand A23 in Hall 1.

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. 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 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 negotiation or conclusion of a financing transaction, the financial effects of a corporate restructuring, the transition and evolution to next generation products, and other statements relating to the company's outlook. All forward-looking statements included in this release are based upon information available to AirNet Communications Corporation as of the date hereof and the Company assumes 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, risks or uncertainties, that our sales revenue is concentrated around a few large customers; that the planned introduction of new products may be delayed or never introduced due to budgetary constraints; that the company's new products may not be accepted by the market, and that the company may not be able to continue to operate as a going concern in the absence of investment capital. 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, 2003.

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