China Aerospace Subsidiary Forms Strategic Alliance with STM Wireless; STM Wireless to Receive Approximately $2 Million in Licensing Fees as Part of the Agreement.

Business Editors & High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 8, 2002

STM WIRELESS, INC. (STM), (Nasdaq:STMI), a worldwide supplier of VSAT networks, today announced that it has formed a strategic alliance with Beijing Changfeng Century Satellite Hi-Tech Co., Ltd. (BCS), a subsidiary of China Aerospace Science & Industry Corporation (China Aerospace), for the offering of VSAT network systems and solutions to customers in China.

China Aerospace is the largest industrial base in China involved in satellite communications and launch systems and has established BCS for the expansion of its activity into satellite ground equipment and VSAT network systems integration. The agreement provides for STM and BCS to cooperate in development and commercialization of new ground equipment technologies and sales and support of STM's products throughout China. Under the terms of the broad collaboration agreement, BCS will, under license from STM, establish local production of VSATs to serve China's expanding communication needs in remote areas.

"We chose STM as our partner and technology collaborator because of their focus and track record in developing the most suitable VSAT products for remote communications," said Mr. He Sun, CEO of BCS. "Our goal is to become the preeminent supplier of satellite ground equipment and systems to a variety of customers and users in China by offering a comprehensive set of products with a strong base of local support and manufacturing."

Emil Youssefzadeh, CEO of STM, said, "With its diverse and wide spread territory, along with continuing economic growth, China represents a large market for STM's products and technology. Our agreement with BCS, which enjoys the backing and support of resources available to China Aerospace, will for the first time allow STM to expand its business in China on a wide scale basis."

About STM Wireless, Inc.:

STM Wireless, Inc., headquartered in Irvine, California (Web Site: www.stmi.com), is a VSAT network system provider for IP-based networking, telephony and bandwidth on demand data applications. STM has a local and regional sales presence in France, Thailand, Indonesia, China, India, South America and sub-Saharan Africa, which support an expanding number of in-country sales representatives throughout the world.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, STM Wireless, Inc. or its representatives have made or may make forward-looking statements, orally or in writing. The words "estimate", "project", "potential", "intend", "expect", "hope", "believe" and similar expressions or words are intended to identify forward-looking statements. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the Company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. As discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 and its Form 10-Q for the first quarter of 2002, the Company's future operating results are uncertain and may be impacted by the following factors, among others: the uncertainty of acceptance of the Company's products, particularly those targeting the broadband market; the long-term cycle involved in completing major contracts, particularly in foreign markets; increasing competitive pressures; general economic conditions; technological advances; financing risks; the timing of new product introductions; political and economic risks involved in foreign markets and foreign currencies; and the timing of operating and other expenditures.