Falls Church, VA and Redmond, WA, April 15, 2004---YDI Wireless (Falls Church, VA) is adding free space optics to its technology stable with the purchase of Terabeam (Redmond, WA), which will become a wholly owned subsidiary of YDI and remain focused on high capacity wireless systems for telecommunications carriers. Currently YDI provides point-to-point and point-to-multipoint microwave radio systems as well as high capacity point-to-point millimeter wave (MMW) systems, while Terabeam provides broadband wireless systems using high frequency MMW and free space optics technologies.

The purchase agreement is based on a stock exchange in which each share of Terabeam's common stock will be exchanged for 0.22 shares of YDI's common stock. YDI CEO Robert Fitzgerald will be the CEO of the combined company, which will be managed by the current YDI management team and will have a board of directors consisting of four YDI designees and three Terabeam designees, including Dan Hesse, Terabeam's Chairman and Chief Executive Officer.

"Not only will we consolidate the two companies' 60 GHz MMW product lines into what we believe will make us a world leader in the production of 'E-Band' (60-90 GHz) wireless systems, but by combining our diverse license-free product lines into a larger product portfolio, the new company will have a more complete set of solutions to meet our customers' varying capacity, range, security and cost requirements," Fitzgerald said. The acquisition is expected to close late in the second quarter or in the third quarter of 2004.

Thu Apr 15 00:01:00 CDT 2004