BURNABY, British Columbia -- Unity Wireless Corporation (OTCBB: UTYW - News), a developer of wireless systems and coverage-enhancement solutions, has signed a definitive agreement to acquire Israeli-based Avantry Ltd. Avantry develops and supplies wireless point-to-point microwave radio-for-broadband backhaul solutions for wireless and wireline communications networks.

The acquisition, which is subject to certain standard terms and conditions, will broaden the Unity Wireless product line and customer base and will allow for cross-selling opportunities that are expected to increase revenues. The Company believes that revenues from the acquisition, combined with an expected increase in worldwide sales in its existing core business, could result in 2006 revenues that are significantly greater than those generated in fiscal 2005. In addition, joint-integration initiatives are expected to bring the Company closer to profitability. The combination of certain sales, marketing and product distribution activities is expected to help reduce overhead costs and create better operational efficiency throughout the entire organization.

The prospective acquisition of Avantry will bring to Unity Wireless a broad transmission product line that integrates microwave radio systems aimed at carrying flexible combinations of SDH, PDH voice and data and Ethernet traffic. Avantry systems are widely installed and supported in more than 25 countries through an extensive network of VARs, distributors and OEM's. Its customer base includes major national cellular and fixed-network operators, ISPs, and a variety of enterprises, government agencies and prestigious vendors. v The purchase agreement provides for a purchase price of $1,750,000 in notes that are convertible at $0.25 per share and are due April 15, 2007, and 600,000 warrants that are exercisable at $0.40 per share. The transaction has been approved by the boards of directors of both companies, and is expected to close within 90 days.

Ilan Kenig, President and CEO of Unity Wireless, commented, "Avantry's products complement our coverage-solutions business by offering proven, carrier-grade wireless backhaul solutions in addition to offering a line of scalable voice and data transmission solutions for both OEM and enterprise customers. According to published market research, the market for this equipment is expected to exceed $5 billion this year. Entering this market through the acquisition of Avantry, with its mature product lines, should help us accelerate our top-line growth as we can now provide a broader line of products to new and existing customers. I am pleased to welcome Avantry's excellent team into the Unity Wireless family."

Unity Wireless Corp.