VCom Acquires WaveRider Canada
Release Date: July 4, 2006
12:32 EDT Tuesday, July 04, 2006
VICTORIA, BRITISH COLUMBIA–(CCNMatthews – July 4, 2006) – VCom Inc. (TSX:VCM), a leader in broadband last mile access technology, announced today that it has completed an agreement with Wave Wireless Corporation (OTCBB:WVWC) to acquire a cluster of companies which will provide new broadband wireless technologies, synergistic sales channels, and substantial revenues in product sales.
Under the terms of the agreement, VCom has purchased WaveRider Communications (Canada) Inc., WaveRider Communications (USA) Inc., Jetstream Internet Services Inc., and Avendo Wireless Inc. from their parent WaveRider Communications Inc, a subsidiary of Wave Wireless Corporation. The shares of all the companies will be purchased for approximately $1 million USD, to be paid in cash. VCom expects the collective revenue of the acquired companies to contribute in the order of $5 million CAD to its fiscal 2007 sales.
As part of the acquisition, VCom has entered into a supply agreement with Wave Wireless pursuant to which VCom will produce under license the 900 MHz product portfolio marketed by Wave Wireless. The companies also intend to sell each others wireless product portfolios. VCom’s best-in-class series of point-to-multipoint products in the 700 MHz, 1.9 GHz, 2.5 GHz, 3.5 GHz and 5.8 GHz bands as well as its burgeoning WiMAX product line will be marketed by Wave Wireless to its established customer base.
Additionally, Avendo Wireless provides VCom with IP in the MIMO (multiple input multiple output) technology arena. JetStream’s approximately 1,400 Internet subscribers in Salmon Arm, B.C. will be added to the network of YourLink Inc., a VCom Internet service provision company.
“This acquisition aligns with VCom’s strategic vision to broaden its technology base with complementary products and develop new sales channels for our products. Acquiring a US corporation will also facilitate VCom’s objective to expand operations into the United States.” said VCom Chairman and CEO, Dr. Surinder Kumar.
VCom Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. VCom’s hardware products incorporate embedded software developed by it to meet the complex requirements of next-generation, high-speed digital networks. Service providers use VCom’s solutions to deliver services to a converging worldwide broadband market, including what are commonly known as “triple play” (voice, video and data) and “quadruple play” (voice, video, data and wireless) services. VCom’s solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end-users, commonly referred to as “the last mile”, by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. VCom’s products are directed at three principal markets: Data over Cable, Broadband Wireless and Digital Video. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. VCom currently employs approximately 600 people in Western Canada.
About Wave Wireless Corporation
Wave Wireless is a leading developer of wireless broadband solutions, offering a comprehensive portfolio of wireless mesh routers, and fixed and mobile NLOS products that can be deployed rapidly and cost-effectively in all types of environments. With more than 250,000 units installed worldwide, Wave Wireless’ carrier-class solutions are used for applications ranging from mission critical public safety communications, video surveillance, municipal networks, private enterprise networks to last mile broadband access. Backed by market-leading engineering support, Wave Wireless solutions have been deployed by first responders, telecom carriers, municipalities, WISPs, utilities, security companies and the military. For more information, visit www.wavewireless.com.
This news release contains forward-looking statements which are not historical facts, but are based on certain assumptions and reflect VCom’s current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. VCom disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
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