SOURCE: Unity Wireless Corporation

January 09, 2007 03:00 ET

Unity Wireless Completes Consolidation -- Significant Savings Achieved

Head Count Reduced 50%; Facilities Costs Reduced 50%; Manufacturing Overhead Costs Reduced 60%

BURNABY, BC -- (MARKET WIRE) -- January 9, 2007 -- Unity Wireless Corporation (OTCBB: UTYW) today announced that it has completed the consolidation of it's three 2006 acquisitions, achieving head count, facilities, and manufacturing cost savings of at least 50% in all areas.

Through the unification of all four companies, Unity Wireless successfully:

--  Moved production into Unity's Asian manufacturing operation
--  Cut facility costs by over half
--  Realized production labor savings of over 80%
--  Increased production capacity and flexibility
--  Consolidated staff functions and reduced head count from 175 to 85,
    despite the addition of 17 staff in our China production group
--  Achieved significant annual equipment lease savings through the
    combination of specialized test and production equipment
"With the reorganization process and associated cost reductions now implemented, it is anticipated 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," said Ilan Kenig, CEO of Unity Wireless.

About Unity Wireless

Unity Wireless is a world class provider of wireless coverage enhancement solutions for cellular operators and custom subsystems for network infrastructure manufacturers. For more information about Unity Wireless, visit

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, 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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