Philips Electronics to Distribute LGC Wireless' Products LGCell Expands Wireless Coverage, Capacity and Access Inside Any Facility.

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 1, 1999--

LGC Wireless Inc. and Philips Electronics UK, Ltd. today announced execution of a Distribution Agreement authorizing Philips Projects to distribute LGC Wireless' products, including the LGCell(TM) wireless access system. Under the Agreement, Philips will sell, install and maintain LGC Wireless' products initially in the United Kingdom and Northern Ireland, with plans to expand to European markets. Philips Projects is a leading supplier of integrated systems and already has extensive experience in applying in-building wireless solutions using a wide variety of technologies.

"In-building wireless solutions will become increasingly important to enable cellular operators to meet rapidly growing capacity requirements in the next few years. This new agreement which combines Philips Projects' expertise in fully integrated solutions with LGC's state-of-the-art wireless systems, will provide a unique capability in total turnkey wireless solutions -- from design and installation through commissioning and full life cycle management," said Mike Little, Business & Technical Development Manager of Philips Projects.

LGC Wireless' LGCell is a patented wireless access system that provides reliable, cost-effective wireless communications throughout any facility or building. The fiber-optic based system consists of small hubs and antennas which are easy to install and maintain. It is ideal both for public areas, such as shopping malls, airports and subways, that need to offer highly reliable, high quality wireless services and for corporations seeking enhanced workforce productivity through expanded wireless capabilities, including wireless voice, data and Internet access.

"Major advantages of LGC's wireless systems include an innovative design which overcomes the problems of combining both 900 MHz GSM and 1800 MHz DCS communications over fiber, and the use of conventional IT cabling significantly reduces installation costs," said Mike Little of Philips Projects.

Philips Projects has successfully completed LGCell product trials in the UK at a major energy provider. With the LGCell, workers were able to use their wireless phones anywhere and at anytime, thus improving both the utility of the service and user satisfaction.

"We are extremely excited about our new partnership with Philips," said John Georges, LGC Wireless Vice President for International Business. "Their reputation for providing quality products and support is unequalled in this industry. LGC Wireless looks forward to working with Philips to deliver best-in-class wireless solutions to our customers."

About LGC Wireless

LGC Wireless develops enterprise wireless solutions enabling mobile voice and data communications and wireless Internet access to the corporate network. The company's wireless system, the LGCell, provides mobile users access to high quality voice and high-speed wireless data via cellular and PCS networks. LGC is currently shipping product to more than 12 countries. Supported wireless access standards include TDMA, CDMA, GSM, iDEN, and 3G. For more information, please visit our web site at http://www.lgcwireless.com

About Philips Electronics UK, Ltd.

Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of over US$ 33.9 billion in 1998. Within Philips Electronics, Philips Projects is a leading provider of integrated electronics solutions for sophisticated infra-structural projects in the areas of communication, security, flow control, traffic, management and environmental control.

Philips Projects' high-level integrated solutions and the company's expertise on project financing, project management and tailor-made lifecycle management have led to an impressive track record of successfully completed projects in a number of market segments. Applications include airports and railway stations, hospitals, hotels, TV-studios, congress centres, stadiums, traffic applications, theme parks, industrial sites and Sound & Light spectacles. Further news on Philips is available on the Web at www.news.philips.com Further news on Philips Projects is available at http://www.philips-projects.philips.com

Editors: For further information, please contact: Clare Svensson, Philips Projects, Cromwell Road, Cambridge CB1 3HE. Tel: [phone]. Fax: [phone] or 214413. Press contact is Allan Parker at Pathway PR, 269 High Street, Berkhamsted, Hertfordshire HP4 1EG. Tel: [phone]. Fax: [phone]. E-mail: [e-mail]