P-Com, Telaxis Nix Merger

CAMPBELL, Calif. and SOUTH DEERFIELD, Mass. -- P-Com, Inc. (Nasdaq:PCOM), a worldwide provider of wireless telecom products and services, and Telaxis Communications Corporation (Nasdaq:TLXS), a developer of wireless fiber optic connectivity products, today announced that they have mutually terminated the definitive merger agreement between the companies. The two companies are continuing discussions relating to a possible merger or other strategic transaction between the companies.In a separate release: CAMPBELL, Calif. -- P-Com, Inc. (Nasdaq: PCOM), a worldwide provider of wireless telecom products and services, today announced that it closed a $500,000 equity financing with institutional investors toward a targeted $1 million in January 2003. The new equity is the initial phase of a broader equity funding campaign to enhance working capital liquidity for the coming fiscal year. "We see improving business conditions in the global wireless communications sector and an improving opportunity for attracting new equity capital in 2003," said P-Com Chief Financial Officer Leighton Stephenson. "We look to build on the financial restructuring that we accomplished in 2002, when we completed an $8 million equity round, secured a $5 million bank line of credit, retired $7 million in convertible notes and restructured an additional $22.3 million of convertible notes.""Although we announced a mutual termination of the Telaxis Communications merger agreement today, we have not precluded the possibility of further discussions with the company about a business arrangement," Stephenson added. "At the same time, we will explore other opportunities that fit our strategic goals in the wireless communications sector." P-Com Inc. Telaxis Communications Corp.