P-Com Inc. Announces Initial Deployment Order From Siemens for Point-to-Multipoint Equipment.

CAMPBELL, Calif.--(BUSINESS WIRE)--Sept. 30, 1999--

P-Com, Inc. (Nasdaq NM:PCMS) announced today that it has received the initial purchase order for deployment of Point-to-Multipoint (PMP) wireless telecommunication equipment from Siemens Information and Communication Networks, Inc. ("Siemens"), a subsidiary of Siemens AG in Munich.

The purchase order represents the first deployment, for P-Com, under the previously announced strategic agreement between WinStar Communications, Inc. (Nasdaq:WCII) and Siemens AG to deploy a worldwide broadband point-to-multipoint network using P-Com's PMP equipment.

The order covers the deployment of hub sites, remote terminals and network management tools to major metropolitan cities in the U.S., with work commencing immediately. The agreement contemplates additional orders as new cities are rolled out and the network is expanded. In addition, P-Com is working very closely with Siemens to provide full network integration and maintenance capabilities. As announced earlier today, Siemens strategic agreement with WinStar includes plans to deploy PMP technology domestically and internationally with a total business opportunity of up to $400 million.

WinStar's president and COO Nathan Kantor said: "We selected the Siemens and P-Com technology because of its excellent performance, traffic capacity and cost effectiveness. Prior to this agreement, our Wireless Fiber(TM) Service has included the use of P-Com Point-to-Point radios very successfully. Now, with the PMP systems, we have the full flexibility of using both technologies to provide the most cost-effective broadband access for our company and for our customers."

Fred Fromm, President and CEO of Siemens Information and Communications Network, said, "Siemens and P-Com have worked very hard to develop a lasting relationship with WinStar, and I am very happy that our technology has been chosen as part of WinStar's broadband access network."

"Our ATM based system architecture, which includes a hub capacity of up to 4800 mbps, bandwidth-on-demand capability, TDMA or FDMA option, various modulation schemes up to 64-QAM and automatic power control, provides Winstar with the best broadband PMP system in existence," said George Roberts, Chairman and CEO of P-Com, Inc.

P-Com's PMP solution is an access system that enables wireless broadband operators to offer voice, data, fast Internet access and video services. P-Com's PMP technology enables a single hub radio to communicate with multiple customers using both the highly spectral efficient Frequency Division Multiple Access (FDMA) and the bandwidth-on-demand enabled Time Division Multiple Access (TDMA) scheme. P-Com is the first and only vendor to offer a remote terminal that can be remotely switched between FDMA and TDMA. With a relatively small number of P-Com's hubs, an operator can rapidly achieve broad coverage of any given market. In addition, the PMP remote terminal offers a multitude of customer interfaces allowing the operator to provide a cost-effective, tailored service solution.

In June 1998, Siemens and P-Com became joint development partners for wireless broadband access and Local Multipoint Distribution Service (LMDS) solutions. The agreement brought together Siemens, one of the world's leading telecom suppliers, with P-Com, a leading innovator in radio technology systems.

Siemens has been working with WinStar as a systems integrator for the 38 GHz wireless broadband multipoint network since the two companies announced their initial agreement in October 1997. P-Com has been supplying point-to-point 38 GHz radio systems to WinStar since 1994.

Siemens Information and Communication Networks Inc. is a leading provider of information and telecommunications solutions to public network service providers and enterprise customers in North America. The company is a subsidiary of Siemens AG, a global business with $66 billion in sales in the fiscal year ended September 1998. Siemens Home page: www.icn.siemens.com.

WinStar Communications, Inc. is a pioneer in providing business customers with broadband communications services, including local and long distance phone service, as well as high-speed data, Internet access and information services. WinStar provides these Wireless Fiber(SM) services in more than 30 U.S. markets over its own local broadband networks, using its licenses in the 28 and 38 GHz spectrum, which are connected to the company's nationwide fiber-optic network. In addition, the company offers Wireless Fiber services in two international markets. In the past year, WinStar has become one of the largest Internet companies in the U.S. Recently, the company announced a destination Web site for businesses, Office.com(SM), a service from WinStar.

P-Com, Inc. develops, manufactures and markets network access systems for the worldwide wireless telecommunications market. The point-to-point, spread spectrum and point-to-multipoint radio links provided by P-Com are designed to satisfy the network requirements of cellular and personal communications services, corporate communications, public utilities and local governments. In addition, P-Com provides comprehensive network services, including system and program planning and management, path design and installation.

Statements in this release that are forward looking 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 additional capital, reliance upon subcontractors, fluctuations in customer demand and commitments, both in timing and volume, introduction of new products, commercial acceptance and viability of new products and expenses associated therewith, cancellations of orders without penalties, pricing and competition, P-Com's ability to have available an appropriate amount of production capacity in a timely manner, 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, the risk of early obsolescence and the pending stockholder class action lawsuit. 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.

P-Com, Inc., with world headquarters in Campbell, California, USA and offices in Florida, New Jersey, Virginia, the UK, Italy, France, Germany, Poland, Mexico, and China, is an ISO 9001 certified company. For additional information, contact P-Com at: P-Com, Inc., 3175 S. Winchester Boulevard, Campbell, CA 95008, USA TEL: [phone], FAX: [phone], www.p-com.com.

Note to Editors: Siemens is a registered trademark of Siemens AG. WinStar is a registered trademark, and Wireless Fiber and Office.com are service marks of WinStar Communications, Inc.

Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are described in WinStar's SEC reports, including the 10-K for the period ended December 31, 1998, and the 10-Q for the period ended June 30, 1999.