STM Wireless Announces Release of Two New VSAT Products; New Line of Products Designed to Maintain and Enhance STM's Competitive Advantage in Commercial VSAT Market.

Business & Technology Editors

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 25, 2002

STM WIRELESS, INC. (STM), (NASDAQ NM Symbol: STMI), a worldwide supplier of VSAT networks for data and telephony applications, today announced the release of its latest lines of VSAT products. STM, which, despite the overall decline in the telecom sector, has achieved reported revenue growth in excess of seventy-five percent (75%) in 2001 compared to 2000, derives primarily all of its revenue from sales of equipment in emerging markets. The new lines of products are intended to enhance STM's competitive position in the emerging markets, particularly in the rural telephony and non-consumer broadband applications, which have been the Company's primary focus.

The two new lines of VSATs announced today are designed to gradually merge the current generation of Data and Telephony products, both from a customer application perspective as well as from a manufacturability point of view. The first of the new line called Solante(TM), which went into limited production in the fourth quarter of 2001, is a mesh DAMA telephony VSAT designed for use by phone companies in rural telephony or other applications. The product maintains the all-outdoor design, which has been a distinct feature of STM's leading Subscriber Earth Station product. The new and unique features of the Solante family, which maintains all of the latest features of STM's mesh DAMA product, include the following:

-- An industry standard L-Band interface allowing a wide selection of power
levels in standard C- and Ku-Band, as well as extended frequency bands.

-- Direct frequency hopping over a 500 MHz band allowing a DAMA pool, which can
cover multiple transponders over the entire satellite spectrum.

-- Cost reduction in mesh networks with multiple Gateways through use of L-band
block up converters and outdoor SSPAs instead of costly transceivers.

-- Solante is designed as an ODU (outdoor unit) for mounting on a standard pipe
typically used as an antenna mast. The unit provides weatherproof access for DC
power input and standard phone line output.

-- A multi-channel version of the product, scheduled for production in the
second quarter of 2002, which uses an MF-TDMA technique in a unique
architecture based on STM's existing DAMA control channels and call processing.
This technique, which is an evolutionary outgrowth of the existing DAMA SCPC
product, allows the Solante VSAT to operate in a mesh DAMA MCPC mode allowing
up to four concurrently active channels to interconnect with different
destinations.

-- Up to four Multi-Channel Solante VSATs can be cascaded to create a
16-channel terminal all mounted on a single pipe behind the antenna. This
configuration supports both 2-wire and 4-wire interface to allow a
multi-channel remote VSAT to be used as a trunking interface to a small rural
switch.

-- An integrated solar system designed to operate with Solante's low
consumption with 24 Volt DC input.

The other VSAT product line concurrently introduced for broadband and IP applications is called the SpaceWeb Olante(TM). This VSAT uses the same L-Band interfaces as the Solante with the same outdoor packaging. The unit operates with DC power input and an Ethernet Interface. The Olante VSAT is compatible with existing SpaceWeb(R) hubs and has the following unique features:

-- Ease of Installation: The direct outdoor Ethernet output

eliminates the need for any special cables. The unit can

interface with built-in Ethernet wiring installed in all new

commercial constructions and has no wiring distance

limitations typically encountered in conventional VSATs with a

separate IDU.

-- The all-outdoor design with low power consumption is ideal for

SCADA applications and other IP-based networking such as

connection to banking ATMs, gas station POS, or other

applications requiring a compact, all outdoor wide

area-networking (WAN) device.

-- Combined with a DVB broadband system, the Olante can deliver

two-way, high-speed broadband Internet access, content

delivery, and video streaming with TDMA return channel.

Built-in TCP acceleration and routing capabilities make it

ideally suited for multi-user applications such as Internet

cafes, schools, government institutions, and small-to-medium

enterprises.

-- The common L-Band interface allows the two types of VSATs to

be mounted on the same antenna pole sharing a medium to high

power transmitter to create a hybrid terminal for mesh

telephony and broadband IP connectivity. This feature will be

of particular interest to private network customers in

emerging markets who want to have a high quality WAN handling

both mesh voice connectivity and broadband IP networking.

Emil Youssefzadeh, STM's Chief Executive Officer, said, "Creation of a common manufacturing platform for our different line of VSATs is a key milestone that would assist us in our continuing market expansion, and enhance our market position for the supply of high quality mesh DAMA VSATs for the years to come."

For additional information on the new lines of VSATs introduced by STM, visit our Web Site at www.stmi.com. Sales inquiries can be addressed to:

 In the United States:      STM Wireless, Inc.
 --------------------       One Mauchly
                            Irvine, California 92618-2305 USA
                            Contact:  David Bredendick
                            Tel:  [phone]

 In Europe, the Middle      STM Wireless
 ----------------------     Arobase 1, Teleport 1
 East, and N. Africa:       Avenue du Futuroscope
 -------------------        86360 Chasseneuil du Poitou, France
                            Contact:  Adbellah Nasreddine
                            Tel:  [phone]

 In South East Asia:        STM Wireless
 ------------------         Kompleks Mutiara Kedoya
                            Blok E2 No. 2
                            Jakarta  11520, Indonesia
                            Contact:  Janto Gunawan
                            Tel:  [phone]

 In China:                  STM Wireless
 --------                   Room B-706, Beijing Huixin Plaza
                            No,. 8, Beisihuan Zhong Rd.
                            Chaoyang District, Beijing, 100101
                            China
                            Contact:  Ben Chen
                            Tel:  [phone]; -0151; -0152

 In South America:          STM Wireless
 ----------------           Nataniel Aguirre 15B
                            Irpavi, La Paz, Bolivia
                            Contact:  Jaime Marzana
                            Tel:  [phone]


 In Central America:        STM Wireless
 ------------------         Privada Luz Savinon No. 26. Col. del Valle
                            03100 Mexico, D.F., Mexico
                            Contact: Gerardo Jimenez Guerra
                            Tel: [phone]

About STM Wireless, Inc.:

STM Wireless, Inc., headquartered in Irvine, California (Web Site: www.stmi.com), is a VSAT network system provider for IP-based networking, telephony and bandwidth on demand data applications. STM has a local and regional sales presence in France, Thailand, Indonesia, China and South America, which support an expanding number of in-country sales representatives throughout the world.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, STM Wireless, Inc. or its representatives have made or may make forward-looking statements, orally or in writing. The words "estimate", "project", "potential", "intend", "expect", "hope", "believe" and similar expressions or words are intended to identify forward-looking statements. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the Company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. As discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2000, and its Form 10-Q for the first three quarters of 2001, the Company's future operating results are uncertain and may be impacted by the following factors, among others: the uncertainty of acceptance of the Company's products, particularly those targeting the broadband market; the long-term cycle involved in completing major contracts, particularly in foreign markets; increasing competitive pressures; general economic conditions; technological advances; financing risks; the timing of new product introductions; political and economic risks involved in foreign markets and foreign currencies; and the timing of operating and other expenditures.