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Terabeam Wireless Announces Plans for WiMAX Systems Based on the Fujitsu System-on-Chip

TeraMax™ 3.0 Products To Include New “Logan” Operating System and Planned for General Availability in 4Q 2005

Falls Church, VA and Sunnyvale, CA
May 23 , 2005

Terabeam Wireless, the business name of YDI Wireless, Inc. (NASDAQ:YDIW), a leading developer and supplier of broadband wireless solutions, and Fujitsu Microelectronics America, Inc. (FMA), a leading provider of robust and highly integrated wireline and wireless system-on-chip (SoC) solutions for next generation networks, today announced that Terabeam has selected the Fujitsu MB87M3400 WiMAX SoC as the standard silicon for integration into Terabeam’s TeraMax™ 3.0 product family. The TeraMax™ 3.0 products will be WiMAX-compliant, will incorporate Terabeam’s new wireless network management operating system, code-named “Logan,” and are planned for general availability in the fourth quarter of 2005.

Terabeam will offer turnkey point-to-multipoint and point-to-point systems complying with the IEEE 802.16-2004 WiMAX standard as an extension of its TeraMax™ product series. Current TeraMax™ products have been providing customers with much of the functionality of WiMAX since 2004, such as orthogonal frequency division multiplexing (OFDM), adaptive dynamic polling, packet aggregation, and enhanced security options. TeraMax™ base stations, customer premise equipment (CPE), and bridges are available today for operation at multiple frequency bands – including the 4.9GHz band dedicated to public safety in the United States – and are also available in compact (integrated-antenna) and ruggedized enclosures. With a powerful combination of performance, versatility, and value, TeraMax™ systems are ideal for a variety of applications and environments for service providers, enterprises, municipalities, and public safety organizations.

The Fujitsu MB87M3400 is fully compliant with the IEEE 802.16-2004 WiMAX standard and can be configured to be used in both base station and subscriber station applications. It is designed to support frequencies ranging from 2 to 11GHz in both licensed and license-exempt bands. An on-chip OFDM PHY supports channel bandwidths from 1.75MHz up to 20MHz, and can operate in TDD or FDD modes. When applying a 64QAM modulation in a 20MHz channel and using all 192 sub-carriers, the SoC’s data rate can go up to 75 Mbps. The SoC incorporates sophisticated processing power, including a powerful main RISC engine that implements the 802.16 upper-layer MAC, scheduler, drivers, protocol stacks, and user application software. Also on board is a secondary RISC/DSP that functions as a co-processor, which executes lower-layer MAC functions, offloading processing from the upper-layer MAC and enhancing the total SoC performance.

“Logan” has been under development for over three years and was a significant driver of Terabeam’s acquisition in 2004 of KarlNet, Inc. Logan is a processor-agnostic operating system that can support multiple wireless modes (including 802.11 and the proprietary TurboCell® currently, and 802.16 by 4Q 2005) and is significantly more adaptable for ongoing development. Logan’s agility and versatility allow for a major streamlining of Terabeam’s software portfolio, and it enables support for quality of service (QoS), voice-over-IP (VoIP), state-of-the-art security and IPv6. Logan’s user interface and configuration and management tools provide for an enhanced user experience. Logan will be integrated into select Terabeam products throughout the remainder of 2005.

“Terabeam’s extensive range of broadband wireless networking products has been deployed around the globe by service providers, enterprises and government entities. The addition of WiMAX-compliant systems to our portfolio will build on our heritage of excellence in wireless networking,” said Robert Fitzgerald, Terabeam Wireless’ CEO. “The Fujitsu WiMAX System-on-Chip delivers the performance we require at an excellent price point, and we are pleased to have aligned ourselves with a leader in this exciting technology. In addition, our introduction of the Logan operating system to uniformly support all of our standards-based and proprietary products will result in a quantum leap in performance, scalability and management control in broadband wireless networking.”

“Terabeam’s decision to work closely with Fujitsu on its WiMAX development is very exciting and gratifying to our broadband wireless team,” said Keith Horn, senior vice president of marketing and sales for Fujitsu Microelectronics America. “It also underscores our contention that 2005 is truly the year in which WiMAX technology will emerge in multiple markets worldwide as the leading companies in the industry, like Terabeam, move forward with significant product development, compliance testing, and initial field deployments.”

Terabeam Wireless will be participating in ISPCON from May 24 to 26 at the Convention Center in Baltimore, Maryland, and will be showcasing its broadband wireless products in booth 318. Terabeam Wireless (booth 87019) and Fujitsu (booth 41015) will be participating in SUPERCOMM 2005 from June 7 to 9 at McCormick Place in Chicago, Illinois. Terabeam will host an executive briefing at 1:00 p.m. CDT on Tuesday, June 7 in Room #N427D (Level 4 in South Building, McCormick Place).

About Fujitsu Microelectronics America, Inc.

Fujitsu Microelectronics America, Inc. (FMA) leads the industry in innovation. FMA provides high-quality, reliable semiconductor products and services for the networking, communications, automotive, security and other markets throughout North and South America. As a founding and board member of the WiMAX Forum™, Fujitsu supports the standards development and compliance programs that are essential to successful Broadband Wireless deployment. Fujitsu provides performance-driven WiMAX solutions by leveraging the company’s experience and expertise in the networking and communications markets. Fujitsu offers flexible WiMAX SoC and reference designs for WiMAX-certifiable systems to equipment vendors. For more product information, please visit the company’s web site at http://us.fujitsu.com/micro/WiMAX or please address e-mail to inquiry.bwa@fma.fujitsu.com

About Terabeam Wireless

Terabeam Wireless is the business name of YDI Wireless, Inc. Terabeam Wireless is a world leader in providing extended range, license-free wireless data equipment and is a leading designer of turnkey long distance wireless systems ranging from 9600 bps to 1.42 Gbps for applications such as wireless Internet, wireless video, wireless LANs, wireless WANs, wireless MANs, and wireless virtual private networks. Additional information about Terabeam Wireless as well as its complete product line can be found at the company’s website located at http://www.terabeam.com or by contacting the company by telephone at 413-665-8551 or by email at IR@terabeam.com.

Press Contacts

Emi Igarashi

Fujitsu Microelectronics America, Inc.
Tel: 408-737-5647

Dick Davies

Tel: 415-777-4161

David Renauld

Terabeam Wireless
Tel: (413) 665 8551 (x-215)

Safe Harbor Statement

Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Terabeam Wireless’ actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including those relating to the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in Terabeam Wireless’ industries and resulting impacts on its pricing, gross margins, and general financial performance; difficulties in predicting Terabeam Wireless’ future financial performance; difficulties or delays in developing and supplying new products with the contemplated or desired compliance, features, performance, cost, price, and other characteristics; and the impacts and effects of any strategic transactions we may evaluate or consummate. Further information on these and other factors that could affect Terabeam Wireless’ actual results is and will be included in filings made by Terabeam Wireless from time to time with the Securities and Exchange Commission and in its other public statements.