Novatel Plays With Stock

SAN DIEGO -- Novatel Wireless, Inc. (Nasdaq:NVTL), a provider of wireless data communications access solutions, announced today the completion of a private placement prior to the quarter close of 14.8 million shares of common stock, together with, warrants to acquire shares of common stock for an aggregate purchase price of $2.750 million.The shares were issued and sold at a price of $0.186 per common share. The investor group was led by Trinity Capital Advisors, Inc.; U.S. Bancorp Piper Jaffray served as the placement agent in connection with the private placement."We are very pleased to welcome this new investment, which is a further step in our concerted plan to improve our balance sheet, cash resources and business model," said John Major, chairman and chief Executive Officer of Novatel Wireless.The shares of common stock were issued together with warrants to purchase up to an additional 7.5 million shares of common stock at an exercise price of $0.24 per share which, upon exercise, would yield additional cash proceeds to the Company of approximately $1.8 million in total, subject to adjustment and certain limited exceptions. The warrants are exercisable at any time during the three-year period commencing on March 12, 2003.In addition, Novatel Wireless announced that the Board of Directors has authorized a reverse stock split of its common stock in a ratio of one-for-fifteen. The record date for the reverse stock split will be at the close of business on October 28, 2002. At a special meeting of stockholders on September 17, 2002, the Company's stockholders approved a reverse stock split at a ratio of between one-for-ten and one-for-twenty as authorized by the board of directors. Each outstanding share of common stock will automatically convert into one-fifteenth of a share of common stock, respectively, thereby reducing the number of shares of common stock outstanding from approximately 91.6 million to 6.1 million. In lieu of fractional shares, stockholders will receive a cash payment based on an average closing price of the common stock for the 20 trading days prior to the effectiveness of the reverse stock split. The par value of the common stock will remain at $0.001 per share and the number of authorized shares of common stock will remain at 350 million shares.Novatel Wireless Inc.