Moseley Acquires Proxim

SUNNYVALE, Calif. -- Proxim Corporation (NASDAQ:PROX) , a leading provider of Wi-Fi and broadband wireless equipment, announced today that it has entered into an asset purchase agreement whereby Moseley Associates, Inc. will acquire substantially all assets of Proxim.

Under the agreement, Moseley will acquire and assume most of the domestic and foreign operations of Proxim for a purchase price of $21 million, subject to certain adjustments and deductions. The sale will be implemented through Proxim's filing of a chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Delaware and subject to court confirmation and overbidding procedures. In connection with the sale, Moseley also has agreed to provide Proxim with bridge financing in the principal amount of up to $6.2 million, to be offset against the purchase price. Under the terms of the transaction as contemplated, no proceeds of the sale are expected to be distributed to Proxim stockholders.

The contemplated acquisition by Moseley would be expected to preserve most of Proxim's operations. Moseley and Proxim believe there are significant synergies and advantages to the combination of their businesses. Proxim's focus on Wi-Fi, WiMAX and broadband wireless access for enterprises and service providers has resulted in solutions for the mobile enterprise, last mile access, metropolitan area networks, public safety, and voice and data backhaul. Combining Proxim's offerings with Moseley's diversified global product lines will enable Moseley to offer an expanded and differentiated portfolio of wireless products covering spectrum from 200 MHz to 38 GHz.

"This proposed acquisition is a continuation of our strategy to be a global, diversified and profitable leader in the wireless marketplace," said Jamal Hamdani, president and chief executive officer of Moseley. "Proxim's pioneering leadership in license-exempt technologies and the 802.11 a, b, and g wireless access marketplace will significantly enhance our product portfolio. Proxim's strong global distribution channels and understanding of low-cost manufacturing will accelerate our growth and fortify our position as one of the industry's preeminent suppliers."

"Our principal post-acquisition focus will be to earn the trust and respect of Proxim's customers, suppliers, partners, and employees," continued Mr. Hamdani. "We intend to fully support all of Proxim's existing customers and product warranties. Our plan includes providing an invigorating and exciting work environment for Proxim's employees as well."

Proxim Corp.