World Wide Wireless Communications' Contra Costa Joint Venture in Full Operation and On Target.

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 7, 1998--

Company Sees New Federal Communications Commission Action as

Enhancing Value of Its Network

CNE Contra Costa LLC, the joint venture between World Wide Wireless Communications, Inc. (OTC:BB Symbol WLGS) and Phoenix Diversified, Inc. is now fully operational in the East Bay Region of the San Francisco Bay Area. Offering very high speed internet access with download speeds exceeding 1Mbps to large business, small office/home office (SOHO) users, and individual consumers, CNE Contra Costa provides this cutting edge service at lower prices than are being charged by those offering slower service using more traditional land-line methods.

Beta service commenced in August, with initial revenue service having commenced in September. CNE's marketing efforts are slated to begin in early October, combining print and over-the-air media announcements with hands-on demonstrations throughout the I-680 corridor. Covering a demographically attractive radius of thirty-five miles surrounding Mt. Diablo, the arm served by CNE Contra Costa is among the fastest growing and wealthiest areas in Northern California. It offers a mix of high-income consumers, with a rapidly developing, mostly high tech based business community centered around Bishop Ranch and the San Ramon-Pleasanton-Livermore areas.

Among the initial subscribers to CNE's services are the Embassy Suites Hotel, the Alameda County Fairgrounds, Authentic Technologies, Ryno Technologies and others. Monthly subscription rates range from $79 to $550, depending on the class of service requested. In addition, customers pay CNE installation charges ranging from $595 to $1,295.

On September 17, 1998, the Federal Communications Commission issued a sweeping Report and Order modifying the rules relating to the use of MDS and ITSF channels. The Company currently controls three MDS channels (including Contra Costa) and has an option to secure up to 41 ITSF channels. The new rules from the FCC have been widely viewed by the industry and the FCC itself, in statements issued by its chairman, as specific recognition and acknowledgment of the importance of MDS and ITSF channels to the two-way high speed data transmission arena. By removing many of the regulatory hurdles and by permitting greater uses of these channels, the Company believes that the FCC has removed the most significant barriers to the use of MDS and ITSF spectrum for the provision of innovative wireless broadband services.

In February, 1997, Holt Media Associates, a well-respected organization providing, among other things, market appraisals to the broadcast industry, issued a Market Valuation of the Company's assets. At the time, Holt estimated the then-current value of the wireless internet division of the Company at $20,000,000 and further estimated a future value of $200,000,000. Holt estimated the then-current value of the VDMA division of the Company at $10,000,000 with a "significant but unprojectable potential" for future value.

Although the Company has divested itself of a minority interest in one series of MDS channels in the Pacific Northwest, as well as its ownership of an MDS license in a very small area of North Carolina, since the initial Holt valuation, it has also acquired the options for up to 41 ITSF channels since that time. The Company is currently engaging the services of Holt to reappraise the assets of the Company in light of these options and of the recent FCC rule changes, as well as of the divestiture of those other assets. The Company anticipates that Holt's assessment that the wireless internet division has a "value of $145.9 million following build-out, full construction and marketing of the systems" (which is now well under way) will not have been diminished in the year and one half since it was made.

Safe Harbor Statement under the Private Securities Litigation Reform Action of 1995: The statements contained in this release, which are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Those risks and uncertainties include, but are not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies and products, delays in testing and evaluation of products, and other risks associated with the industry in which the Company operates.