Balance of Financing for $55 Million Contract Committed to for ARC Wireless Subsidiary by Societe Generale Bank of New York; Winncom Technologies Begins Construction; Company Also Announces Intent to Open Office in China Next Quarter.

WHEAT RIDGE, Colo. -- ARC Wireless Solutions, Inc. (OTCBB:ARCS) and its wholly owned subsidiary, Winncom Technologies Corp., today announced that Societe Generale bank, New York, NY, has committed to finance the remaining approximately $11 million necessary for the previously announced turnkey telecommunications project in Kazakhstan. Societe Generale New York, NY, would be the lender for the entire $55 million to JSC Kazakhtelecom, of which the Ex-Im Bank of New York had previously agreed to guarantee up to $48 million. The primary guarantor for repayment of the $55 million would be Kazkommertsbank, Kazakhstan's largest bank.

Winncom competed with several other telecommunications companies and was awarded the JSC Kazakhtelecom contract in October of 2004. The contract specifies, among other things, that Winncom is responsible for locating and presenting funding of project costs of approximately $55 million, plus any financing or other fees, to the national telecommunications provider, JSC Kazakhtelecom, which must approve the loan agreement. "We are very excited that Societe Generale New York, NY, has committed to fund the remaining portion of the project," stated Gregory E. Raskin, CEO of Winncom. "Societe Generale expects to submit the $55 million loan package to JSC Kazakhtelecom within a few weeks for approval."

Additionally, Winncom has agreed to enter into an interim loan agreement with Kazkommertsbank to fund approximately $2.3 million for the installation cost of fiber optic cable and equipment for the project. The installation of the fiber optic cable is the first step of the construction project and is required to occur prior to winter in order to expedite completion of the project. The $2.3 million interim loan principal is to be guaranteed by JSC Kazakhtelecom and will be repaid by JSC Kazakhtelecom once the long term financing is in place.

"We are very excited that Winncom is executing on our plan to expand our wireless business internationally," stated Randall P. Marx, ARC Wireless' Chief Executive Officer. "To that end, we are currently making arrangements to open an office in China this year. Our objective is not only to expand our manufacturing capabilities but also to prepare for an eventual marketing presence in the region. It is estimated that we will have at least two full-time employees in China sometime during our next quarter," Mr. Marx added.

About ARC Wireless Solutions, Inc.

ARC Wireless Solutions, Inc. is involved in selective design, manufacturing and marketing, as well as distributing and servicing, of a broad range of wireless components and network products and accessories. The Company develops, manufactures and markets proprietary products, including base station antennas (for cellphone towers) and other antennas, through its Wireless Communications Solutions Division; it is a value added distributor of Wi-Fi(R) and other wireless networking products through its Winncom Technologies Corp. subsidiary; and it designs, manufactures and distributes cable assemblies for cable, satellite and other markets through its Starworks Wireless Inc. subsidiary. The Company's products and systems are marketed through the Company's internal sales force, OEMs, numerous reseller distribution channels, retail, and the Internet. ARC Wireless Solutions, Inc., together with its Wireless Communications Solutions Division and its Starworks Wireless subsidiary, is headquartered in Wheat Ridge, Colorado. The Company's Winncom Technologies Corp. subsidiary is located in Solon, Ohio. For more information about the Company and its products, please visit our web sites at www.arcwireless.net, www.antennas.com, www.winncom.com and www.starworkswireless.com.

About Societe Generale Group

Societe Generale is one of the largest financial services groups in the euro-zone. The Group employs 92,000 people worldwide in three key businesses: Retail Banking & Financial Services: Societe Generale serves about 18 million individual customers worldwide; Global Investment Management & Services: Societe Generale is one of the largest banks in the euro-zone in terms of assets under custody (EUR 1,275 billion, June 2005) and under management (EUR 353 billion, June 2005); Corporate & Investment Banking: SG CIB ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance. Societe Generale is included in the four major socially responsible investment indexes. www.socgen.com

About Ex-Im Bank

Ex-Im Bank, the official export credit agency of the United States, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2004, Ex-Im Bank authorized financing to support $17.8 billion of U.S. exports worldwide. For more information, visit www.exim.gov.

This is not a solicitation to buy or sell securities and does not purport to be an analysis of the Company's financial position. This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements and assumptions upon which forward-looking statements are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. See the Company's most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-K and Form 8-K filed on May 12, 2005, for additional statements concerning important factors, such as specific contingencies and uncertainties related to the JSC Kazakhtelecom project, as well as general demand for products, manufacturing costs, customer approvals and competition, that could cause actual results to differ materially from the Company's expectations.