Alcatel Resells AirNet

PARIS -- Alcatel (Paris: CGEP.PA and NYSE: ALA) and AirNet Communications Corporation (NASDAQ: ANCC), the technology leader in broadband software defined base station products for wireless communications, announced today that they signed an Original Equipment Manufacturer (OEM) agreement whereby Alcatel will be able to purchase GSM Base Station Subsystem (BSS) radio products from AirNet for resale to Alcatel's customers. Alcatel already received purchase orders following this agreement from Oklahoma-based MBO Wireless, Inc., for GSM wireless network infrastructure equipment, software and related services to be deployed in North America over the next four quarters.

AirNet's GSM base station product line, which serves all GSM frequency ranges with both voice and data technology, complements Alcatel's EvoliumTM product capabilities for 2.5G network solutions for the North American mobile market.

The five year agreement permits Alcatel to sell AirNet's products including the AdaptaCellR base station, the SuperCapacityTM base station incorporating adaptive array technology. AirNet's adaptive array technology allows the use of the same frequency in two adjacent cells which significantly improves the frequency usage, thus reducing the amount of spectrum and cell sites required. The agreement also includes the AirSiteR Backhaul FreeTM base station enabling the use of GSM frequencies to link several Base Stations together.

"Alcatel continues to break new ground by offering operators our integrated SuperCapacityTM adaptive array solution," said Glenn Ehley, President & Chief Executive Officer for AirNet Communications. "This cooperation will leverage Alcatel's sales in North America in both new and established accounts. Thanks to Alcatel, we anticipate unprecedented market access and acceptance of AirNet products. This OEM Agreement is a strong endorsement of our technology vision for GSM voice and high speed data wireless infrastructure."

"Our strategy to strengthen Alcatel's presence in the North American GSM market with both voice and high-speed data applications can be accelerated with the AirNet SuperCapacity? base station including adaptive array technology.," said David Owen, President of Alcatel mobile activities in North America. "AirNet's unique product solution will be integrated into our global mobile portfolio to provide mobile operators with end-to-end revenue generating solutions. The AirSiteR Backhaul Free base station also enhances the existing Alcatel product range offering by providing cost-effective coverage for both rural and highway applications."

The Alcatel Evolium? solution comprises a Wireless Media Gateway, a radio access network (Base Stations and Base Station Controllers), Mobile Switching Centers, Home Location Registers, an Intelligent Network platform for value-added services, as well as a GPRS core network infrastructure. Alcatel Evolium? end-to-end solutions support GSM, High Speed Data, GPRS, EDGE and UMTS for 3G technologies.

Alcatel SA

AirNet Communications Corp.