Azimuth Systems Reports Record Revenue in 2006; Announces Major Milestones.

Wireless Test Equipment Leader Leverages Growth in Service Provider Business to Secure New Funding and Expand Product Line

ACTON, Mass. -- Azimuth Systems Inc., the leading provider of Wi-Fi([R]) engineering test equipment, today announced several milestones that demonstrate the company's significant growth in 2006. The company achieved record revenue for 2006 and solidified its position as the premier provider of test solutions for wireless devices and networks supporting data, voice and video applications by adding more than 50 new customers. Azimuth also received an additional $7.5 million in funding from its current investors in December of 2006, positioning the company for expansion into the WiMAX and cellular markets.

Mobile wireless devices are incorporating increasingly complex technical requirements and Azimuth's continued growth stems from the industry move toward repeatable, automated test methods for bringing these products to market faster. The company has shipped to more than 100 wireless semiconductor, system vendors and service providers including Atheros, Broadcom, Cisco, Marvell, Motorola, Netgear, T-Mobile and Vonage oC that rely on Azimuth's proprietary test solutions to speed time-to-market and improve product quality. Azimuth customers accounted for more than 98% of all Wi-Fi units sold in 2006,according to Sam Lucero of ABI Research.

"Azimuth has succeeded in growing its customer base, while also building a comprehensive Wi-Fi product portfolio around our unique testing architecture," said Jim Iuliano, CEO of Azimuth Systems. "Our focus on delivering lab validation of real world performance for wireless IP solutions is also opening new and emerging markets for us. The early successes we've had in the WiMAX and cellular markets point to an exciting 2007 for Azimuth."

The latest additions to Azimuth's award-winning product line include the new Voice over Wi-Fi test suite that enables the streamlined testing of VoWi-Fi phones and converged wireless devices, allowing voice quality, roaming performance and battery life of wireless VoIP handsets to be analyzed under various motion and traffic conditions. Service Providers were a major growth segment for Azimuth in 2006, as vendors recognize the need to test for "Carrier-Grade" Wi-Fi voice solutions.

Azimuth also introduced a number of industry firsts, such as the Azimuth MIMO Functional Test solution for interoperability, performance, conformance and backward compatibility testing of draft 802.11n-based products; the Wi-Fi Power Consumption Benchmark suite that accurately measures the power consumption of mobile devices during various Wi-Fi usage modes to determine the impact of Wi-Fi connectivity on a device's battery life; and the Wi-Fi Mesh Test software suite that automates performance testing of wireless mesh networks to ensure maximum product performance and quality. Additionally, volume shipment of the revolutionary Azimuth Channel Emulator (ACE[TM]) 400NB began in 2006, and it is now the industry's leading channel emulator.

Most recently, the company announced that the Wi-Fi Alliance([R]) will be using its AzCert[TM] Wi-Fi Certification test suite for Test Engine-enabled devices to perform testing according to the new Wi-Fi Alliance Test Engine architecture. The test suite will be used by Wi-Fi Alliance Authorized Test Laboratories (ATLs) for certification testing and also allows product vendors, device manufacturers and semiconductor vendors to pre-test using the same approach. The new solution is expected to streamline the certification process for a broad range of products with embedded Wi-Fi connectivity such as phones, handheld games, cameras, TVs and MP3 players, and also for standard Wi-Fi equipment such as notebooks and network cards.

The Wi-Fi Industry Adopting the Azimuth Approach

Azimuth's momentum is a testimony to the company's unique testing approach, which provides unmatched repeatability, flexibility and automation for wireless data communications testing. The six key elements of the Azimuth Approach are: RadioProof[TM] enclosures that isolate the RF environment; SmartMotion[TM] technology to precisely control virtual motion between devices in the network; TestMAC[TM] technology to emulate clients and APs and to perform protocol behavior tests; a Real2Real[TM] architecture that enables interoperability testing between real world devices; Azimuth DIRECTOR[TM] test executive to provide an easy-to-use console for test and device management; and Azimuth STUDIO[TM] database management software for automated report generation and correlation of test results.

About Azimuth Systems

Azimuth Systems is a leading provider of wireless data communications test solutions. Azimuth's products are used by the world's foremost wireless semiconductor, system vendors and service providers to speed time-to-market and improve wireless product quality. Azimuth's standardized test solutions enable research, development, QA and marketing engineers to test the performance, conformance and certification of wireless devices and networks supporting data, voice and video applications. The company is based in Acton, Massachusetts and is backed by prestigious investors including Kodiak Venture Partners and North Bridge Venture Partners. Azimuth may be contacted at [phone] or at www.azimuthsystems.com.

Azimuth([R]) is a registered trademark of Azimuth Systems and ACE[TM], AzCert[TM], RadioProof[TM], SmartMotion[TM], TestMAC[TM], Real2Real[TM], DIRECTOR[TM] and STUDIO[TM] are trademarks of Azimuth Systems. Wi-Fi([R]) is a registered mark of the Wi-Fi Alliance([R]). All other trademarks are property of their respective owners.