P-Com Announces Preliminary Results for Third Quarter 2002; First Order Received From $100 Million Datang Agreement.

Business Editors

CAMPBELL, Calif.--(BUSINESS WIRE)--Oct. 18, 2002

P-Com, Inc. (NASDAQ:PCOM), a worldwide provider of wireless telecom products and services, today announced that revenue for the third quarter ending September 30, 2002 is expected to be in the range of $7.5 million.

P-Com said results would be lower than forecasted because several orders received at the end of the third quarter could not be processed in time for shipment in the third quarter. As a result, P-Com's revenue is expected to be approximately $7.5 million, compared to $8.6 million for the second quarter of 2002 and guidance in the range of $9.2 million for the third quarter. P-Com will announce final financial results for the third quarter of 2002 on Oct. 31 and will host an investor conference call to discuss results.

Also today, P-Com announced a $3.1 million order for its point-to-multipoint product from Shanghai Datang Mobile Communications Equipment Company Limited, a subsidiary of Datang Telecom Technology Industry Group, one of the largest telecom equipment providers in China. This order, subject to satisfying the contractual requirements including receipt of a letter of credit, is the first from the $100 million contract that was previously announced between P-Com and Datang.

"P-Com received several orders late in the third quarter which will be processed and shipped in the fourth quarter," said P-Com Chairman George Roberts. "P-Com continues to make progress penetrating new geographic markets, winning new customers and generating repeat business among existing clients. We're particularly pleased with the order for our point-to-multipoint product from Datang and our growing relationship with this key maker of telecom products for the market in China. In addition, our merger with Telaxis Communications Corporation is proceeding and is expected to close in the fourth quarter of 2002."

On Sept. 10, P-Com announced a definitive merger agreement with Telaxis Communications Corporation (NASDAQ: TLXS), a developer of wireless fiber optic connectivity products.

Conference Call

Management will hold a conference call on Oct. 31, 2002, at 2:00 p.m. Pacific, 5:00 p.m. Eastern time to discuss financial results for this quarter. To listen to the call by phone, dial 1-888-273-9887 within the U.S. or 1-612-332-0725 outside the U.S. To listen to a live broadcast over the Internet, go to www.p-com.com and click on the Investor Relations page, or go to StreetEvents at www.companyboardroom.com. A replay of the call will be available at both sites for 90 days.

About P-Com, Inc.

P-Com, Inc. develops, manufactures, and markets point-to-multipoint, point-to-point, and spread spectrum wireless access systems to the worldwide telecommunications market, and through its wholly owned subsidiary, P-Com Network Services, Inc., provides related installation support, engineering, program management and maintenance support services to the telecommunications industry in the United States. P-Com's broadband wireless access systems are designed to satisfy the high-speed, integrated network requirements of Internet access associated with Business to Business and E-Commerce business processes. Cellular and personal communications service (PCS) providers utilize P-Com's point-to-point systems to provide backhaul between base stations and mobile switching centers. Government, utility, and business entities use P-Com systems in public and private network applications. For more information visit www.p-com.com or call [phone].

Safe Harbor Statement

Statements in this release that are not historical, are forward looking and involve known and unknown risks and uncertainties, which may cause P-Com's actual results in future periods to be materially different from any future performance that may be suggested in this release. Such factors may include, but are not limited to, the need to raise equity capital, a severe worldwide slowdown in the telecommunications equipment and services sector, working capital constraints, fluctuations in customer demand and commitments, fluctuation in quarterly results due to the timing of orders and our capacity to fulfill them, introduction of new products, commercial acceptance and viability of new products, cancellations of orders without penalties, pricing and competition, reliance upon subcontractors, the ability of P-Com's customers to finance their purchases of P-Com's products and/or services, the timing of new technology and product introductions, and the risk of early obsolescence. Further, P-Com operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond P-Com's control, such as announcements by competitors and service providers. Reference is made to the discussion of risk factors detailed in P-Com's filings with the Securities and Exchange Commission, including its reports on Form 10-K and 10-Q.