WaveRider and IlliCom Telecommunications Expand Wireless Network In East Central Illinois.

Business Editors

TORONTO--(BUSINESS WIRE)--Sept. 26, 2001

WaveRider's Non-line-of-sight Wireless Network Enables IlliCom To

Add Residential and Small Business Service to Its

High-Speed Internet Offerings

WaveRider Communications Inc. (NASDAQ:WAVC), a leading global provider of fixed wireless Internet access products, today announced that IlliCom Telecommunications has purchased WaveRider's Last Mile Solution(R) system to expand its wireless network. IlliCom will introduce broadband Internet access to residential and small businesses in East Central Illinois via WaveRider's LMS3100 non-line-of-sight wireless products.

IlliCom Telecommunications, a subsidiary of Eastern Illini Electric Cooperative, will launch its wireless services to residential and small business subscribers in the area surrounding its central office in Paxton, Illinois. The WaveRider LMS3100 network expands IlliCom's existing wireless services which were introduced in December, 2000 to deliver high-speed Internet access to IlliCom's commercial customers.

"As a provider of dial-up Internet service, we know there is significant demand for high-speed Internet services throughout East-Central Illinois, especially in more rural areas that do not have access to traditional wired services," said Kevin Osterbur, General Manager, IlliCom Telecommunications. "WaveRider's LMS3100 system is an ideal solution for us to install a network quickly and cost-effectively and begin offering wireless broadband services to our customers."

WaveRider's LMS3100 is the world's first commercially available wireless system designed to deliver broadband Internet access at speeds of 1.4 Mbps (megabits per second) via a non-line-of-sight connection. The LMS3100 operates in the license-exempt 900 MHz spectrum, and includes a wireless modem and indoor antenna that can be easily installed by subscribers, eliminating the need for professional installations.

IlliCom will launch its LMS3100 wireless service to its first 100 residential and small business subscribers in Paxton in October and plans to install two additional Communications Access Points (CAPs) before the end of the year to further expand its wireless network.

"IlliCom has developed a successful wireless Internet service provider (WISP) business model based on the use of WaveRider's systems, and with the deployment of the LMS products is well positioned to increase its commercial and residential subscriber base," said Charles Brown, WaveRider's Vice President, Sales and Marketing. "The demand for broadband access continues to grow across North America, especially in areas that currently have little or no access to high-speed Internet services. IlliCom and many other telecommunications companies have demonstrated that wireless technologies are a viable option to deliver broadband services to these markets."

WaveRider's LMS3000 Series

WaveRider's LMS3000 series of wireless non-line-of-sight products includes the fully network-managed LMS3000, which delivers high-speed Internet access to thousands of subscribers, and the entry-level LMS3100, which can serve up to 300 users on a single communications access point.

WaveRider's LMS3000 series offers over-the-air data rates of 2.75 Mbps and throughput speeds of 1.4 Mbps via the license-exempt 900 MHz ISM frequency band over a one-mile range. The range can be extended to up to four miles with a line-of-sight installation. The LMS3000 end-user modem and indoor antenna can be easily installed by subscribers via an Ethernet connection.

About IlliCom

Established in 1998, IlliCom Telecommunications Inc. is a wholly-owned subsidiary of Eastern Illini Electric Cooperative based in Paxton, Illinois. IlliCom currently has points of presence in Paxton and Urbana, Illinois. In addition to high-speed wireless service, IlliCom provides a comprehensive suite of Internet related services including dial-up Internet access, website design, and Internet training classes.

About WaveRider Communications Inc.

WaveRider Communications Inc. (www.waverider.com) is a leading wireless information technology company that develops, manufactures and markets products for data communications and Wireless Internet Networking (WIN). WaveRider's high performance products use direct sequence spread spectrum technology and operate in the license-free 900 MHz and 2.4 GHz ISM frequency bands. NCL Series Wireless Bridges and Routers provide the wireless connection between single or multiple computer networks. Integrated network management features ensure data is quickly forwarded to its intended destination based on network conditions. WaveRider's LMS (Last Mile Solution(R)) Product Family connects wireless modems that offer high-speed connections to the Internet for business and residential customers. WaveRider is traded on the NASDAQ National Market, under the symbol WAVC.

Except for the historical statements made herein, this release contains forward-looking statements that involve risks and uncertainties including the risks associated with the effect of changing economic conditions, trends in the development of the Internet as a commercial medium, market acceptance risks, realizing expected revenue, technological development risks, and seasonality. Risk factors also include the company's ability to secure additional financing; the company's ability to commercialize its products; the company's ability to compete successfully in the future against existing or new competitors; the company's ability to protect its intellectual property and the assurance that the rights granted under patents or copyrights that may be issued will provide sufficient protection to its intellectual property rights; the company's success in enhancing existing products and developing new products to keep up with the technological advances in the data communications industry; the continued availability of the license-exempt spectrum which is based on regulation by U.S. and foreign governments; the company's ability to avoid significant product liability exposure; the company's dependence on a limited number of third party manufacturers; the company's ability to execute its business plan and generate an overall profit and other risk factors detailed in the Company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K as amended. Due to these factors, actual results could differ materially from those expressed in forward looking statements by the company.