Alereon Applauds FCC Ruling on OFDM Ultrawideband; Government's Announcement Heralds Deployment of Advanced UWB Systems in 2005.

AUSTIN, Texas -- Alereon, a leading fabless semiconductor company developing wireless solutions for the Ultrawideband (UWB) and Wireless USB (WUSB) markets, today said it is pleased with the FCC's just-released decision on orthogonal frequency-division multiplexing (OFDM) UWB. The government's positive finding effectively clears the way for deployment of advanced MultiBand OFDM (MB-OFDM) UWB technology, which offers significant advantages over other UWB systems, including: faster data transfer rates, longer signal range, lower power requirements, less out of band interference and a higher probability of compliance with international UWB regulations.

According to an online broadcast of today's Commissioners meeting, Commissioner Michael J. Copps said, "I think today's item can bring us closer to the day that these devices are available for a wide variety of applications. I look forward to the day that I can ditch that tangle of wires behind my computer and go out and buy a car with an ultrawideband safety system." FCC Chairman Michael K. Powell commented on Commissioner Copps' vision by stating, "This (UWB) really holds that promise and I think you will have a grateful nation the day that those kinds of consumer products begin to enter the space (marketplace)."

"Today's much anticipated ruling is a vote of confidence for the WiMedia organization and more than 170 allied MB-OFDM companies, including the world's biggest consumer electronics, personal computing, home entertainment, mobile phone, semiconductor and digital imaging companies," said Eric Broockman, Alereon's chief executive officer. "These companies will begin certifying MB-OFDM based products later this year and move rapidly to market, allowing consumers to wirelessly connect PCs, camcorders, digital cameras, printers, MP3 and DVD players, instantly sharing audio, data and video at 480 megabits per second. We are, at this moment, showing demonstrations of Alereon's UWB technology in Europe and Asia and anticipate favorable regulatory rules in these economies in the future."

"Many Alereon team members were instrumental in the proceedings and analysis that culminated in the UWB regulations issued by the FCC in early 2002," said Dr. Jim Lansford, chief technology officer, Alereon. "With more years of experience in UWB than any other MBOA member, and the only company with working silicon at 480MBps, we were confident that the FCC would correctly conclude that the MBOA OFDM waveform presents lower potential for interference than the current rules. Further, given the MBOA's superior out of band interference mitigation and spectral flexibility, we expect other interested parties to be highly supportive of MultiBand OFDM technology."

"This FCC decision confirms that WiMedia compliant systems meet the FCC's February 2002 UWB rules and regulations," said Allen Nogee, Principal Analyst for In-Stat/MDR. "Now Alereon and other WiMedia member companies can deliver chipsets with the benefits of MBOA based UWB solutions to their customers."

With this announcement, Alereon and other OFDM UWB companies will deliver FCC certified WiMedia products to the market in 2005 that make good on the promise of UWB -- very high speeds, low power, low interference, multi-vendor interoperability, and low cost. WiMedia in turn will be the basis for Wireless USB applications, wireless 1394 and TCP/IP.

About Alereon, Inc.

Alereon, Inc. is a fabless semiconductor company providing complete solutions for wireless USB/ MultiBand OFDM ultrawideband (UWB) applications. A technology pioneer, Alereon holds the greatest number of UWB patents, was first to demonstrate an entirely in-house designed UWB platform, co-founded the MultiBand OFDM Alliance (MBOA) and WiMedia Alliance, and is participating in the development of a wireless USB standard. Alereon's products promise to replace the complex tangle of wiring used to interconnect today's consumer electronics, computer peripheral, and mobile devices with high-bandwidth, low-power, low-cost wireless links. Further information is available on the company's website: www.alereon.com.