ArrayComm Deploys IntelliCell Technology in 100,000 Base Stations Worldwide; Network Operators Achieve Real-World Gains in Capacity and Coverage While Lowering Costs.

Business Editors/High-Tech Writers

CTIA Wireless 2002

ORLANDO, Fla.--(BUSINESS WIRE)--March 18, 2002

ArrayComm, Inc. today announced it has deployed its IntelliCell(R) technology in more than 100,000 base stations worldwide, marking a major milestone in its mission to make personal wireless communications systems work better.

Since base stations incorporating IntelliCell technology began shipping in 1998, they have been deployed in Personal Handyphone System (PHS) networks throughout China, Japan and Taiwan, as well as Wireless Local Loop (WLL) networks in China, Ethiopia, the Philippines and the United Arab Emirates. Together, these regions have proven that IntelliCell "smart antenna" technology multiplies system capacity by eight times or more, and that the technology is viable, cost-effective and beneficial for both network operators and subscribers.

"When we first incorporated ArrayComm's IntelliCell technology into our PHS network in 1998, our network capacity more than doubled overnight, and we were able to offer our subscribers a higher quality of service," said Yoshiki Chika, general manager of the engineering planning department at DDI-Pocket, Inc. of Japan. "Our network now includes nearly 30,000 IntelliCell-powered base stations, that allow us to support new services like 128 kbps wireless data, which we are introducing this month."

"When FITEL first decided to launch a PHS network in Taiwan, we searched for the best technology available," said Hann-Bin Chuang, Ph.D., vice president of network business at First International Telecom Corp. "PHS with ArrayComm's IntelliCell smart antenna technology was part of the answer, especially when it comes to better coverage. With IntelliCell technology, the amount of equipment required for our initial roll-out was significantly reduced, and we were able to provide the advantage of PHS's superior voice quality and higher data speeds to more users."

Traditional cellular systems broadcast to many users; with IntelliCell technology, a "personal cell" is created for one user, follows that user while he or she communicates, and is dismantled when the user is finished. These personal cells reduce interference, allow for wider coverage, improve capacity, reduce costs and create clearer signals. ArrayComm's IntelliCell technology is incorporated in wireless network base stations through licensing agreements with base station equipment manufacturers. ArrayComm's largest licensing partner is Kyocera Corp. of Japan.

"Hitting the 100,000 base station mark proves what we have said since the founding of our company," said Martin Cooper, ArrayComm chairman and CEO. "Through innovation and advance planning, wireless networks can be dramatically more effective and more affordable. We help network operators deliver better voice and data quality -- no more dropped calls or coverage 'black holes.' But even more importantly, we help them lower their capital expenditures. Not only does that make them more profitable, but it also contributes to lower costs and a higher quality experience for mobile service customers. Eventually, that will mean a future where none of us is tied to a phone cord, and all communication is mobile."

For network operators, ArrayComm's "personal cell" approach reduces the number of base station deployments by half and capital outlay by a quarter -- an enormous economic advantage. An IntelliCell-enabled network can deliver eight times the capacity of a conventional system or twice the coverage area. In addition, integrating IntelliCell technology in base stations reduces transmit power throughout the network, reducing radio interference.

Personal cells are made possible by ArrayComm's patented implementation of spatial processing, a mathematical representation of each user's physical location in a service area. IntelliCell technology calculates a unique spatial signature for each user, focusing energy precisely where it's needed. As users move, the signature is continually recalculated to optimize signal quality.

About IntelliCell

IntelliCell technology is a software solution that is licensed to base station manufacturers for integration at the baseband level with off-the-shelf hardware components. Once deployed, base stations incorporating IntelliCell technology can achieve greater performance enhancements through subsequent software upgrades that ArrayComm develops with its OEM partners. IntelliCell technology is fully compliant with PHS, W-CDMA, GSM and CDMA standards and requires no change at the terminals or in the base station-to-network interface. It can be integrated with any wireless air interface, including next-generation wide-area networks and wireless LANs.

About ArrayComm

ArrayComm, Inc. is the world leader in smart antenna technology. ArrayComm's patented IntelliCell(R) technology -- based on fully adapted smart antennas -- creates dedicated personal cells of voice or data for wireless subscribers. ArrayComm licenses IntelliCell technology to manufacturers and improves the cost, coverage and capacity of any personal communications system. It is installed in more than 100,000 IntelliCell-equipped base stations worldwide, capable of serving more than 10 million people. IntelliCell technology is also the key ingredient behind ArrayComm's innovative i-BURST(TM) system -- the only wireless Internet access system that offers the freedom of mobility with the high speed of DSL at consumer pricing. ArrayComm was founded in 1992, and wireless industry pioneer Martin Cooper is chairman and CEO. The company has more than 200 patents issued or pending worldwide. For more information, please visit www.arraycomm.com.

ArrayComm and IntelliCell(R) are registered trademarks, and i-BURST(TM) is a trademark of ArrayComm, Inc. Other names are registered trademarks or trademarks of their respective holders.