Wi-LAN Reports Q3

OTTAWA -- Wi-LAN Inc. (TSX:WIN) (“Wi-LAN” or “the Company”) today announced fiscal third quarter 2006 financial results for the three and nine months ended July 31, 2006. All financial amounts are expressed in thousands of Canadian dollars, except per share amounts or unless otherwise noted.

Overview

Following an extensive review of strategic alternatives, Wi-LAN decided to focus resources on commercializing its portfolio of essential wireless technology patents. To achieve this, the Company’s Board of Directors approved a plan in January 2006 to exit the products businesses, and in March 2006 to divest its engineering services business. The divestitures were substantially completed in May, during the Company’s fiscal third quarter.

Financial Highlights

In the third quarter ending July 30, 2006, Wi-LAN generated revenues from its patent licensing program by licensing intellectual property (“IP”) involved with specific fixed WiMAX applications known as the IEEE 802.16d standard to Fujitsu Microelectronics for a $2,096 up front and a possible future royalty stream upon the achievement of certain shipment volume levels.

Fiscal third quarter G&A expenses totaled $1,483. This includes approximately $400 of unusual or one-time costs relating to certain legal expenses, proxy fight and contractors supporting systems requirements in the transition of the business into patent licensing. The third quarter 2006 loss from discontinued operations amounted to $832. These costs reflect a number of expenses relating to the obligations of exiting the businesses, including additional termination, product return and other items. Earnings per share figures were $0.01 from continuing operations, and a loss of $(0.01) per share after including the discontinued businesses.

At June 30, 2006 Wi-LAN’s cash and equivalents amounted to $9,556. A large portion of this cash component is associated with completing the financing which closed June 22, 2006. Net cash proceeds to Wi-LAN were $7,395, after brokers fees and other cash costs. Patents, licenses & trademarks plus cash represent 94% of the Company’s total assets.

"This was a watershed quarter for Wi-LAN”, said Jim Skippen, Wi-LAN’s President & CEO. “The accomplishments this quarter are numerous, and include the completion of the sale of the Company’s product division, the signing of two financing deals for gross proceeds of $16 million, the opening of our new head office in Ottawa, the hiring of essential management to position the Company for future success and the realization of the new Wi-LAN’s first patent licensing revenues from Fujitsu. This quarter we have also initiated a widespread licensing campaign for our essential wireless patents and are already in discussions and negotiations with a number of parties."

"I am delighted with Wi-LAN’s progress on the financial front," said Acting CFO Steve Bower. "We restructured the business successfully, and with the $7.4 million net cash raised in June and an additional $7.3 million net cash raised in August, the Company is positioned for great success as a major licensor of patents in the wireless markets we serve."

Wi-LAN Inc. (Toronto: WIN) (Nasdaq: WILN)