Wi-LAN Enters Into Joint Venture in China to Accelerate Penetration of Broadband Wireless Market

January 17, 2002

Joint Venture Company Created to Drive Wi-LAN Product Sales in China

Wi-LAN Inc. (TSE:WIN.), an innovator of high-speed wireless data/Internet communications, today announced its participation in Wi-Comm Communications Co. Ltd., a Chinese joint venture company based in Beijing, China.

The joint venture was created to accelerate penetration into the Chinese market by accessing experienced talent to drive Wi-LAN product sales in China.

"We have been working with these partners for over two years, and are impressed with the results we have seen to date," said Hatim Zaghloul, Chairman, President, and CEO, Wi-LAN Inc. "This joint venture will extend our reach and visibility in China with its huge demand for broadband data communications."

Wi-Comm Communications Co. Ltd. (Wi-Comm), is a Chinese joint venture company owned 51% by Ray Scientific and Technology Development Co. Ltd. of China (Ray Scientific), 20% by Wi-LAN Inc., and 29% by Wincomm Communications Inc. (Wincomm), of Beijing. Wi-LAN has granted Wi-Comm a non-exclusive license to manufacture (initially comprised of final assembly of core components) and sell Wi-LAN products in China, in exchange for a 20% equity interest in Wi-Comm and royalties on Wi-Comm's sales. Any increase in the scope of manufacturing will be based on market demand and subject to the mutual agreement of the parties. Wi-LAN continues to retain exclusive title to and ownership of its patented and proprietary technologies and is the exclusive supplier to Wi-Comm of broadband wireless equipment.

The joint venture brings Wi-LAN closer to its strong Chinese business partners, with the objective of offering the best price-to-performance wireless access solutions in the 2-11GHz band. Using Wi-LAN's Advanced Wireless Ethernet Bridges (AWE) and Broadband Wireless Systems (BWS) products and key components, Wi-Comm will be able to offer its customers high-capacity broadband wireless point-to-multipoint systems that are rapidly deployable, scaleable, easily expandable, and cost-effective.

"Having Wi-LAN's products, expertise and patented technologies at our disposal gives us a significant advantage toward growing our successful business in China," said Lok Chow, General Manager of the Wi-Comm joint venture. "As our customers are expecting non-line-of-sight capabilities, Wi-LAN's W-OFDM technology is the perfect solution to meet their demands."

In 2001 the State Regulatory Radio Commission (SRRC), the Chinese government agency responsible for regulating spectrum allocation, certified Wi-LAN's AWE 120-24, AWE 120-58 and BWS 3500 products for use in China. With these certifications, Wi-LAN has a full product offering available for sale in China for the license-exempt 2.4 GHz and 5.8 GHz bands, as well as the 3.5 GHz licensed frequency.

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