Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

May 29, 2006 07:00 ET

Wi-LAN Completes Sale of Technology Development Division to Fujitsu Microelectronics America

CALGARY, ALBERTA--(CCNMatthews - May 29, 2006) -

Final Agreement Reflects Wi-LAN's Transition into a Licensing Company

Wi-LAN Inc. (TSX:WIN) ("Wi-LAN" or "the Company") today announced that it has completed the sale of its technology development division to Fujitsu Microelectronics of America, Inc. ("FMA"), for cash proceeds of $2M USD, as per the terms of the Letter of Intent announced on March 20, 2006 as well as other financial considerations. Additional royalties per unit would apply once a certain number of semiconductor units are produced. Wi-LAN has agreed to sell its entire technology development division; this includes the contracts for all of Wi-LAN's technology development staff, and all 802.16d-like standards-based MAC and PHY technologies. In addition, FMA purchases a license to Wi-LAN's patent portfolio for 802.16d-like products and services, which includes OFDM and MAC licenses. The agreement closed Wednesday, May 25.

Wi-LAN has not sold any of its patents as a result of this transaction.

"Closing this deal with FMA is the last internal milestone in the transformation of Wi-LAN into a pure patent licensing company", said Dr. Hatim Zaghloul, Chairman of the board of directors of Wi-LAN. "Wi-LAN can now build on the recent addition of James Skippen as CEO, and the filed lawsuit against D-Link Canada, to license and protect its portfolio of key communications patents. This agreement is not only a sale agreement; it is a license agreement with future royalties at the same time."

"We have collaborated with Wi-LAN since 2002 as we have together advanced WiMAX technology. We are pleased to continue working with Wi-LAN's talented engineering team and wish Wi-LAN success as the company moves to its new business model," said Kazuyuki Kawauchi, president and CEO of Fujitsu Microelectronics America.

FMA has already hired the vast majority of Wi-LAN's technology development staff effective May 1.

This agreement supersedes all prior agreements between the two companies.

About Wi-LAN Inc.

Wi-LAN holds a varied portfolio of essential patents in large, existing and emerging industries: CDMA2000, WiFi and WiMAX. Wi-LAN has licensed its patents to a number of companies. Wi-LAN is a charter member of the WiMAX Forum (www.wimaxforum.org).

Forward Looking Information

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless communications industry. These risks and uncertainties include, but are not restricted to, continued increased demand for the Company's products, the Company's ability to maintain its technological leadership in the field of high-speed wireless communications, the Company's ability to attract and retain key employees, the enforceability of the Company's patents, and the availability of key components.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

All trademarks and brands mentioned in this release are the property of their respective owners.

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