Novatel Wireless Signs Agreement With BT Cellnet for GSM/GPRS Wireless Modems

Agreement Expands Distribution Throughout Europe

December 12. 2001

Novatel Wireless, Inc. (Nasdaq:NVTL), a provider of wireless data access solutions, and BT Cellnet, the UK mobile business of BT Wireless, today announced a distribution agreement for Merlin GPRS Wireless PC Card Modems, starting with the Merlin G201(TM) Wireless PC Card Modem. The initial agreement is valued at an excess of $10 million US dollars with shipments through Hugh Symons commencing in December 2001. The Merlin G201 GPRS Card will run over BT Cellnet's GPRS/GSM network, enabling high-speed wireless data access to the Internet, email, and corporate databases at speeds up to 53.6 kbps in GPRS coverage areas and up to 14.4 kbps via circuit-switched data in GSM coverage areas.

In conjunction with this announcement, Novatel Wireless also announced distribution agreements for the Merlin G201 with Digifone in Ireland, Telfort in the Netherlands and Viag in Germany, complementing existing partnerships with leading European distributors Hugh Symons and Brightpoint.

"To meet the growing demand for mobile data services and products, BT Cellnet aims to provide our customers with innovative first-to-market products like the Merlin G201," said Tony Greaves, EVP Devices for BT Cellnet. "The introduction of Merlin G201 gives mobile professionals access to mission critical information while expanding BT Cellnet's corporate mobile data service offerings."

"Novatel Wireless is pleased to announce this supply agreement with BT Cellnet, one of Europe's leading wireless service providers," said John Major, CEO of Novatel Wireless. "We are excited to partner with BT Cellnet and continue to expand our presence throughout Europe. By adding Digifone, Telefone and Viag to our existing European distribution networks, we continue to establish strong relationships that reinforce our presence in the growing European next generation wireless market."

About the Merlin G201

The Merlin G201 is a dual band (900/1800) wireless PC Card modem based on GSM/GPRS technology. Slightly larger than a credit card, Merlin G201 slides inside your Type II PC Card slot, providing access to email, corporate databases and the Internet at maximum speeds up to 53.6 kbps over GPRS and 14.4 kbps over GSM. Equipped with a robust removable antenna to enhance portability, the Merlin G201 enables Short Messaging Service (SMS) capabilities allowing users to send and receive text messages for quick person-to-person or group chats from their laptop or handheld device.

With user-friendly DataNet(TM) wireless modem manager software, the Merlin G201 uses the familiar Microsoft dial-up connection that allows users to control their connection to the network providing one-step easy connection, saving battery life and time attempting to establish a connection while booting up or when network coverage is not available. Merlin G201 is compatible with Microsoft Windows 98, 2000, Millennium Edition, XP and Pocket PC operating systems

The Merlin G201 will offer standard GSM voice capabilities with an upgrade package available shortly after launch, allowing calls to be originated on a laptop or Pocket PC. The user will be notified of incoming calls even when in a data session. The Merlin G201 upgrade package will include a wearable headset with differential audio for crisp, clear sound.


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