Airbee Accelerates Product Development Through New Software Agreement.

Business Editors/High-Tech Writers

ROCKVILLE, Md.--(BUSINESS WIRE)--May 18, 2004

Airbee Wireless Inc. (Pink Sheets: ABEW) today announced that it has signed an agreement with a major international software development company to accelerate the development of its expanding product line of intelligent software for wireless communications. The agreement calls for joint work to begin immediately and is scheduled for completion early this fall.

"We look to advance the development of our product suite as quickly as possible, and this supplemental initiative will allow us to continue focusing our staff resources on ongoing development activities," said Airbee COO Gene Sharer.

The agreement follows a competitive RFP process during which Airbee received three qualified proposals. After an initial evaluation, discussions were held with each applicant, and the contract was awarded.

"The contract recipient was clearly the leader from the beginning of the evaluation period," added Raj Sundaresan, Airbee's CEO. "They understood our specific requirements; and they have the requisite experience and management systems in place to assure the success of this initiative."

Airbee recently announced the expansion of its development center in Chennai, India, and the signing of a joint development agreement with SupaRule Systems Ltd., a manufacturer and supplier of electronic products for technical personnel in a variety of industries. Last week, the company applied for a first patent on its breakthrough data transmission technology.

About Airbee

Airbee is an innovator of intelligent connectivity software for wireless communications. Its product portfolio enables consumer and business devices to wirelessly connect to each other over short distances. Airbee is a developer of software licensed to manufacturers of microprocessors used in an increasing number of wireless communications applications. A member of The ZigBee Alliance, Airbee's competitive edge is attributed to utilizing a software approach vs. a hardware approach - enabling it to provide lower cost, greater flexibility and shorter time to market for its customers. To learn more about getting unwired with Airbee inside, please visit www.airbeewireless.com.

Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. Airbee Wireless, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, and/or changes in our business strategies.