SOURCE: 5G Wireless

January 30, 2006 09:00 ET

5G Wireless Announces Consolidation of 5G Wireless Communications and Solutions Entities

MARINA DEL REY, CA -- (MARKET WIRE) -- January 30, 2006 -- 5G Wireless Communications, Inc. (OTC BB: FGWI), an emerging leader in the wireless broadband industry, announced that it has merged its 5G Wireless Solutions, Inc. operating subsidiary into the 5G Wireless Communications, Inc. parent company effective January 27, 2006.

The decision by the board of directors to merge the two companies was based on several factors, including cost savings. The business will save on insurance, payroll taxes, corporate taxes, bank fees, administrative costs and audit fees. The consolidation will also facilitate corporate governance and provide greater focus of available resources on the single operating unit. Additionally, financial reporting will be streamlined and result in a single set of numbers.

The original decision to segregate the operating company from the reporting entity was based on the Business Development Company (BDC) requirements under the Investment Company Act of 1940. Under that act, the holding company, 5G Wireless Communications, Inc., could not maintain any operations. Once the company discontinued as a BDC, there was no reason to continue to maintain Solutions as a separate operating subsidiary.

"Our growth curve prescribes a streamlining of operations and managerial resources," stated Jerry Dix, 5G Wireless Communications CEO. "Now, we can focus on meeting our primary business objectives with fewer administrative distractions."

About 5G Wireless Communications, Inc.

5G Wireless Communications, Inc. (OTC BB: FGWI), located in Marina del Rey, CA, creates and markets wireless broadband solutions for university and municipal campuses, and provides wireless networking equipment to a select group of VARs and WISPs through its Authorized Channel Partners program. Customers enjoy high performance Internet access at lower acquisition, implementation and maintenance costs than most major competitors because of uniquely enhanced Wi-Fi base stations. 5G Wireless products are distinguished by their exceptional service area range, throughput speeds, number of concurrent users, non-line-of-sight (NLOS) capabilities and unique security protocol. These enhancements are compatible with standard IEEE 802.11b Wi-Fi equipment for "last mile" roaming and point-to-multipoint networks. 5G's value proposition -- significantly increased performance at the lowest possible total cost of ownership (TCO) -- is quickly becoming a key consideration in the strategic deployment of the wireless experience. For additional information call 800.916.1611 or visit http://5gwireless.com/.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited, to those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

All product or service names mentioned herein are the trademarks of their respective owners.

Contact Information

  • CONTACT
    Frank Simonelli
    VP/Marketing
    5G Wireless Communications, Inc.
    310.448.8044
    Email Contact