Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

August 24, 2006 16:22 ET

Court Refuses to Strike Wi-LAN's Claim for Punitive Damages Against D-Link

OTTAWA, CANADA--(CCNMatthews - Aug. 24, 2006) - Wi-LAN Inc. (TSX:WIN) announced today that on August 21, 2006, the Federal Court of Canada refused to strike Wi-LAN's claim for punitive damages in its Statement of Claim against D-Link Canada Inc. and D-Link Systems Inc.

In a motion brought by D-Link and heard by the Federal Court of Canada, D-Link requested that several paragraphs in the Wi-LAN Statement of Claim be struck by the Court. Although the Court did strike paragraph 1(e), which Wi-LAN considers inconsequential, the Court refused to grant D-Link's motion with respect to most of the paragraphs it requested be struck from the Statement of Claim.

Of particular significance, the Court refused to strike Paragraph I(f) from the Claim requesting the Court award punitive damages to Wi-LAN. The Court also refused to strike Paragraph 13 which states, among other things, that "(D-Link) did not enter into negotiations for a license but rather unreasonably, willfully and callously ignored (Wi-LAN) and the Patent. (D-Link) callously adopted the attitude that (Wi-LAN) would lack the financial resources to enforce its Patent."

"Although it is early in the process, this is encouraging news for us in our case against D-Link", said Jim Skippen, President and CEO of Wi-LAN. "We believe that it is important for Wi-LAN to have the ability to seek punitive damages from D-Link, since we believe this is a case in which punitive damages are warranted. Of course, we prefer resolving this type of dispute without resorting to the courts, however we will vigorously protect our rights if necessary in order to ensure that our shareholders receive fair value from companies who use our patented technology. Moreover, given our two recent financings, we now have the financial ability to aggressively defend our intellectual property, and we intend to do so."

The Court also requested Wi-LAN to provide further particulars concerning its claims of infringement, which Wi-LAN considers procedural and not materially significant to Wi-LAN.

On May 16, 2006, Wi-LAN announced that it had filed and served a lawsuit against D-Link Canada Inc. in the Federal Court of Canada for infringement of Wi-LAN's Canadian patent 2,064,975. Wi-LAN had filed the suit in early April but had not served the Statement of Claim while attempting to reach an out of court resolution to the issue. Also named in the suit is D-Link's U.S. subsidiary, D-Link Systems Inc.

Wi-LAN has always maintained that all devices incorporating the IEEE802.11a/g standards utilize Wi-LAN's W-OFDM patents. According to D-Link's published marketing reports, D-Link is the #1 market share leader in small to medium business connectivity on a worldwide basis for wireless local area networks (WLANs) and wide area networks (WANs). D-Link's IEEE802.11a/g-compliant products can be found in top electronics retailers in Canada such as Best Buy, CompuSmart, Future Shop, London Drugs, Office Depot and the Source.

About Wi-LAN Inc.

Wi-LAN, which was founded in 1992, is a licensor of key wireless technologies, and was a co-founder of both the OFDM forum and WiMAX forum. Some of the fundamental technologies covered by the Wi-LAN patents include CDMA, WiFi and WiMAX. Wi-LAN has already licensed its intellectual property to a number of major companies, including Cisco and Fujitsu.

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 and the global economy. These risks and uncertainties include, but are not restricted to, the Company's almost total reliance on the licensing of its patent portfolio to generate revenues and cash flows; the enforceability of the Company's patents; the need to acquire or develop new patents to continue to grow its business; the Company's need for investment to translate its intellectual property position into sustainable profit in the market; the need to attract, develop and retain key officers and employees; and the risk that changes in patent legislation or in the interpretation or application of patent litigation could materially adversely affect the Company. These risks and uncertainties may cause actual results to differ from information contained herein, when estimates and assumptions have been used to measure and report results. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

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