PROXIM AND ERICSSON DEVELOP WIRELESS LAN INFRASTUCTURE.

Proxim Corporation (NASDAQ:PROX), a provider of high-performance wireless local area networking (WLAN) and wireless wide area networking (WWAN) products, have signed an agreement with Ericsson to provide WLAN access points for the public space market.

Ericsson will use Proxim's ORiNOCO AP-2000 dual-slot access point in its Mobile Operator Wireless LAN solutions for public hotspots. Ericsson's Mobile Operator WLAN enables operators to integrate WLAN with their existing 2G and 3G mobile business, reusing investments made in core infrastructure, subscriber management, billing and authentication. The solution will initially include Proxim's 802.11b radio in its AP, and in the future include 802.11a and future technologies such as 802.11g.

"We are delighted to co-operate with Ericsson in order to enable mobile operators to be a driving force in the market take-off for public WLAN services," said Jonathan Zakin, Chairman and CEO of Proxim. "Both Proxim and Ericsson bring to the table a level of expertise far superior to any of their competitors, making this a winning match not only for Ericsson and Proxim, but also for Ericsson's customers."

This agreement capitalizes on the complements between WLAN and GSM/UMTS technologies. Operators need more bandwidth for data, in order to offer more applications to the business professional, and later to consumers as well. By offering public WLAN services, operators can provide businesses with fast data access and transfer to support an increasingly mobile workforce.

Under the agreement, Proxim and Ericsson will also jointly develop SIM-based authentication for public WLAN access. The aim is to enable users to gain secure access to a public WLAN via their mobile phone using its SIM card as a means of authentication. This will use the SIM Extensible Authentication Protocol for GSM (EAP-SIM) and the Authentication and Key Agreement Protocol (EAP-AKA) for UMTS used in combination with Proxim's 802.1x AP security implementations.

Both Ericsson and Proxim are leaders in their respective fields. Ericsson is the global market leader in wireless communications infrastructure and Proxim is a leading provider of high-performance WLANs and WWANs. According to Synergy Research Group, Proxim is the market share leader for wireless LAN Access Points with a 36% market share.

"The Wi-Fi Alliance sees the integration of Wi-Fi networks with GSM systems as a key move in bringing about the reality of public Wi-Fi networks," said C. Brian Grimm, marketing director for the Wi-Fi Alliance. "We know that users want the flexibility of access that public wireless networking affords, the fact that they will now be able to use existing GSM technology to access the networks will greatly expand the attractiveness of public Wi-Fi networks."

About The Wi-Fi Alliance

The Wi-Fi Alliance is a non-profit organization formed in 1999 to certify interoperability of IEEE 802.11 products and to promote them as the global, wireless LAN standard across all market segments. The Wi-Fi Alliance has instituted a test suite that defines how member products are tested to certify that they are interoperable with other Wi-Fi CERTIFIED products. These tests are conducted at an independent laboratory. Membership in the Wi-Fi Alliance is open to all companies that support the 802.11 family of standards. Wi-Fi Alliance now comprises over 170 members that offer over 450 Wi-Fi CERTIFIED products from the world's leading companies. For more information, visit http://www.wi-fi.org.

About Proxim

Proxim Corporation is a provider of high-performance wireless local area networking (WLAN) and wireless wide area networking (WWAN) products. The company holds leading shares in the fast-growing markets for 802.11b, 802.11a, and license-exempt fixed wireless networking systems. Proxim's systems securely connect networks within buildings as well as between locations up to 40 miles apart, providing enterprises, service providers, and consumers with unprecedented networking capacity and mobility. Proxim Corporation was created by the merger between Proxim, Inc. and Western Multiplex Corporation in March 2002.

Proxim can be found on the World Wide Web at http://www.proxim.com.

For more information, call 408/731-2781.