SOURCE: Unity Wireless Corp

November 16, 2006 03:00 ET

Unity Wireless Reports Proforma Q3 Results of $3.1 Million and Nine Months at $11.9 Million

BURNABY, BC -- (MARKET WIRE) -- November 16, 2006 -- Unity Wireless Corporation (OTCBB: UTYW), a world class provider of amplifier subcomponents for wireless industry original equipment manufacturers, today reported financial results for the third quarter and nine months ended September 30, 2006.

Based on consolidated statements, which include revenues from the acquisitions of Avantry and Cellerica, with partial revenues for Celletra from August 17th, 2006, revenues for the third quarter of 2006 increased 59.8% to $1.5 million from $949,700 in 2005 and, for the first nine months, rose from $4.63 million last year to $4.66 million in 2006.

During the same period, proforma revenues (as if the acquisitions had been completed at the beginning of the year) for the third quarter achieved $3.1 million and $11.9 million for the first nine months.

"Due to the impact of the acquired companies (Celerica, Celletra, and Avantry), consolidated operating expenses for the third quarter rose from $1.1 million to $2.5 million, and from $3.9 million to $5.1 million for the first nine months," said Ilan Kenig, CEO of Unity Wireless.

Mr. Kenig continued, "However, with our subsequent significant rationalization and streamlining activities during the integration, and the transition of production to a centralized facility in China, we anticipate that the integrated company's rising trend in revenues will be complemented by a drop in Q4 expenses, with even greater savings to be realized in Q1 2007."

Full and detailed results are available on the 10-QSB that has been filed with the SEC.

About Unity Wireless

Unity Wireless is a developer of wireless systems for cellular operators and key network components for network infrastructure manufacturers.

For more information about Unity Wireless, visit www.unitywireless.com.

Forward-Looking Statements

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "feel," "plan," "anticipate," "project," "could," "should" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation, inability to consummate the acquisitions, difficulty in integrating any of the proposed or future acquisitions, inability to raise the funds necessary for the continued operations of the Company and its acquisitions, changes in external market factors including the economy, and other risks and uncertainties indicated in the Company's most recent SEC filing on form SB-2. Actual results could differ materially from the results referred to in the forward-looking statements.

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