Clearwire Completes Divestiture of Equipment Company.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--Dec. 5, 2001

Move allows service provider to

evaluate equipment from multiple vendors

Officials with Clearwire Holdings, parent company of Clearwire Technologies, announced today that it has completed the spin-off of its equipment subsidiary, Clearwire Equipment Company, LLC (CEC), to the management group of CEC. Clearwire had previously indicated its intensions to establish itself as a leading provider of broadband wireless Internet and data services to business customers, and had been pursuing strategic alternatives with respect to divesting CEC. In addition to narrowing its focus, this divestiture will also allow Clearwire to independently evaluate wireless technology solutions offered by all vendors.

"As Clearwire Technologies moves forward toward its launch of broadband wireless services, it is important that the company have singular focus on being a service provider," said Clearwire President and COO, Leo Cyr. "This move allows us to be vendor independent in our selection of the next generation broadband wireless technology."

CEC will equally be free to complete its development of the next generation of equipment at its own pace and to offer this equipment to all providers in the market. In addition, CEC will be able to capitalize on several current opportunities to sell its equipment to customers in other markets. "The separation of the two companies is positive for both companies," said Tom Daley, President and CEO of CEC. "CEC has been developing additional markets for equipment distribution for some time and this activity is not the core focus of Clearwire. CEC is now able to develop these alternative markets and sell its current products while at the same time it will continue its development of a product that addresses the broadband wireless internet and data services market to be ready when that market is further developed".

About Clearwire

Clearwire provides high-speed Internet and data services to small and mid-sized businesses in Tier 2 and Tier 3 markets. Utilizing proven wireless access technology, Clearwire delivers reliable, cost effective services with a quick, easy and customer-friendly installation process, usually in less than five business days. Through a relationship with the ITFS Alliance, Clearwire has access to one of the largest licensed 2.5 GHz footprints in the country. Clearwire, which has secured $97 million in funding, has assembled an experienced management team to profitably expand into new, previously underserved markets using a smart-build strategy. The Dallas-based company was founded in 1998. www.clearwire.com

About CEC

CEC provides turnkey solutions for providing high-speed data transfer, including Internet access, to private enterprises. CEC has managed the installation of numerous networks in various business applications, including lottery networks and private corporate wireless networks. CEC is one of the few companies currently selling equipment in the license exempt 2.4GHz band that has successfully deployed its equipment in currently operating networks. It has also completed FCC certification on the first version of its next generation equipment, and is working on its final version that will be a software-defined radio, to be available in mid-to-late 2002.