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Proxim Partner Azulstar Networks Brings Cities Online Quickly Proxim Wireless Corporation, a global provider of broadband wireless equipment and wholly owned subsidiary of Terabeam Wireless (Nasdaq: YDIW), today announced that it has joined Intel Corporation's Digital Communities Initiative. The initiative aims to support government organizations in using wireless technology and innovative applications to expand and improve services for municipal governments, businesses, and citizens. As part of the initiative, Proxim has supplied the infrastructure for Azulstar Networks to deploy municipal wireless networks in Rio Rancho, New Mexico and Ferrysburg and Spring Lake, Michigan. Rio Rancho, a city on the bank of the Rio Grande, is now home to one of the world's largest metro Wi-Fi networks. The network provides Wi-Fi coverage over more than 40 square miles, enabling over 70,000 residents to access the Internet with computers or personal digital assistants equipped with Wi-Fi cards. In addition, the network is being used to conduct municipal government business, including homeland security and education, with plans to extend the network for use in traffic management, libraries, and municipal worker mobile access. By utilizing Proxim's ORiNOCO(R) Wi-Fi product line for access, including the AP-4000M dual-radio mesh networking access point, and its Tsunami(R) MP.11 pre-WiMAX products for outdoor distribution of the data traffic, Azulstar has introduced features such as quality of service and mobile roaming, establishing a converged network capable of carrying voice, data, and video, and primed for more innovative services as needs evolve. The Rio Rancho public school system launched a Cyber Learning Academy that enables county-wide distance learning with virtual classrooms for high school and middle school students. The Cyber Academy uses the metro Wi-Fi network exclusively for its voice, data, and video needs. The New Mexico Department of Transportation is piloting a traffic monitoring and control system that connects traffic signals and video cameras using the wireless network. The Rio Rancho network is also being used to pilot a variety of Wi-Fi based intelligent transportation services. Proxim and Azulstar have also collaborated to deploy metro Wi-Fi infrastructure throughout Ferrysburg and Spring Lake, Michigan. These deployments are extensions of Azulstar's network for Grand Haven, the nation's first metro Wi-Fi network. The tri-city network links public safety cameras, city operations, and hospital buildings as well as thousands of residents, businesses, and visitors. "This is a proud moment for our city as we officially 'cut the cord' and become a wireless digital community," said The Honorable Jim Owen, Mayor of Rio Rancho. "We are the City of Vision and Metro Wi-Fi is clearly the future. The benefits touch virtually every corner of our community, from the schools system to the transportation network and mobile first responders. Everyone benefits." "Wireless broadband affords an array of valuable new services that dramatically enhance government capabilities as well as quality of life for citizens," added Paul Butcher, marketing manager for State and Local Government, Intel. "We applaud Rio Rancho for becoming a Digital Community, including deployment of valuable tools for government, business and citizens, to enhance efficiency, promote economic growth, foster greater community satisfaction and bridge the digital divide." "Our 19-year heritage of excellence in wireless networking is being applied by municipalities around the world looking for innovative and cost-effective ways to bring broadband access to their citizens and for mission-critical government applications," said Amit Malhotra, Vice President of Marketing at Proxim Wireless. "We are pleased to be working with forward-thinking companies like Intel and Azulstar to develop next-generation technologies and services to ensure that municipal wireless networks meet communities' needs now and in the future." "As forward-thinking digital communities have proven the value of metro Wi-Fi, 2006 promises to be the year of the Hot City as more and more towns embrace wireless," said Tyler van Houwelingen, CEO of Azulstar Networks. "Metro Wi-Fi is quickly being recognized as the most cost effective way to connect city agencies and infrastructure as well as to bring the Internet to everyone." About Proxim Wireless Proxim Wireless Corporation is a wholly owned subsidiary of Terabeam Wireless (corporate name: YDI Wireless, Inc. - NASDAQ: YDIW). Proxim Wireless is a global leader in providing Wi-Fi and other broadband wireless solutions to meet the performance, scalability, and security requirements of enterprises, government, and service providers. Information about Proxim and its products and support can be found at http://www.proxim.com. Safe Harbor Statement Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including those relating to the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industries and resulting impacts on our pricing, gross margins, and general financial performance; difficulties or delays in developing and supplying new products with the contemplated or desired features, performance, cost, price, and other characteristics; risks arising from and relating to Terabeam Wireless' recent acquisition of Proxim Corporation's operations, assets, and relationships; and the impacts and effects of any other strategic transactions we may evaluate or consummate. Further information on these and other factors that could affect our actual results is and will be included in filings made by Terabeam Wireless from time to time with the Securities and Exchange Commission and in our other public statements.