STM Wireless Signs Contract Valued At Over $8 Million for Rural Telephone System in Nepal; System to be Used for Phone Services in 1,000 Villages.

Business and Technology Editors

IRVINE, Calif.--(BUSINESS WIRE)---Oct. 25, 2001

STM Wireless, INC. (STM), (NASDAQ NM Symbol: STMI), a worldwide supplier of VSAT networks, today announced that it has signed a contract with Nepal Telecommunication Corporation (NTC) for the supply of a VSAT rural telephony network for the Kingdom of Nepal.

The network is planed for delivery and implementation in two phases starting in 2002.

The contract by NTC represents one of the largest rural telephony projects in Asia and is targeted at offering service in many of the Himalayan country's remote and inaccessible areas. Under the terms of the contract, STM will supply a Hub and 1,000 remote VSAT terminals in two phases. The first phase of the project will encompass 60% of the network and the second phase will start after completion of the delivery of the first phase. STM is primarily responsible for the supply of equipment and will train NTC for the installation of the remote terminals after commissioning of the first 20 remote sites.

Mr. R.L. Shrestha, General Manager of NTC, said "We are looking forward to the implementation of this project in order to extend the basic communication services to the remote and distant areas of Nepal." STM, which is one of the leaders in the supply of rural telephony VSATs, has supplied similar networks throughout the world. Considering the social nature of rural telephony, irrespective of economic circumstances, more and more developing countries are considering the use of VSATs for delivering basic communications services to their underserved population.

Emil Youssefzadeh, STM's Chief Executive Officer, said, "We are very happy with the opportunity to supply the VSAT network for use in one of the most rugged areas of the world. Technological advances in the past few years have allowed a substantial reduction in the cost of VSAT terminals, making it easier for many countries to expand the reach and coverage of their telephone services." STM supplies a range of VSAT terminals designed for rural telephony. The NTC VSAT network will be supplied with a solar power system allowing autonomous operation with public payphones.

About Nepal Telecommunications Corporation (NTC):

NTC is the government owned national telephone operator in the Kingdom of Nepal. NTC's network is comprised of a fully digital public switching system, serving 292,439 fixed line subscribers with a national penetration of 1.27%. Additionally, NTC operates Nepal's only mobile phone network with a GSM system serving 20,000 subscribers. NTC has been one of the users of Intelsat satellites since 1982 and uses earth stations in Pokhara, Nepalgunj, Biratnagar and Bhairahawa for domestic telephone trunks and Kathmandu earth stations for domestic and international telephone trunks.

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 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", "intended", "expect", "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 two 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.