WaveRider Communications Inc.

WaveRider Communications Inc.

March 30, 2005 16:06 ET

WaveRider Reports Year-End Financial Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WAVERIDER COMMUNICATIONS INC.

OTC Bulletin Board SYMBOL: WAVR

MARCH 30, 2005 - 16:06 ET

WaveRider Reports Year-End Financial Results

TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) - All values expressed
in $U.S.

WaveRider Communications Inc. (OTCBB:WAVR), a leading global provider of
fixed wireless Internet access products, today reported revenues of
(U.S.) $9,541,604 for its fiscal year ended December 31, 2004, a
decrease of 27 per cent from FY2003 revenues of $13,078,555.

Net loss for 2004 totaled $6.3 million, or $0.42 per share compared to a
loss of $5.1 million, or $0.39 per share in 2003. The net loss for 2004
included non-cash financing expenses of $2.5 million, resulting from the
conversion of certain company notes to common stock during 2004.

Factors contributing to the decline in revenues included the following:

- The delay in the commercial introduction and shipments of WaveRider's
EUM3006 integrated outdoor modem and antenna until February, 2005 from
Q4 of 2004 resulted in lower than expected revenues in Q4.

- Purchase patterns of WaveRider's major distributors changed in the
first half of the year from large stocking orders to purchases based
strictly on demand.

- New competition in the 900 MHz market in North America resulted in
significant pricing pressure and a reduction of WaveRider's average
selling prices

- Market confusion surrounding the timing of introduction and
capabilities of WiMAX and other broadband products contributed to an
increase in the average sales cycle for both new and existing customers.

"While we are disappointed by year on year results, we have taken a
number of steps to revitalize the company and we remain committed to
product innovation and diversification to drive the Company forward,"
said Bruce Sinclair, Chief Executive Officer, WaveRider Communications
Inc. "During the last few months, we have seen the successful
introduction of the NCL5800 family of products, the introduction of the
EUM3006, our integrated outdoor unit, and have recently announced our
MobileWAN products. We are continuing to build our roster of
telecommunications companies, WISPs, municipalities and other network
operators. We have also added new bench strength to the company with the
addition of three industry-experienced members to our board directors."

We will continue to have to make tough fiscal decisions until we can get
the company to a profitable and cash flow positive position. We will
also continue to explore alternatives to grow the company, our product
offerings and markets, through strategic partnerships, acquisitions,
mergers and new financing," added Sinclair.



WaveRider Communications Inc.
CONSOLIDATED BALANCE SHEETS

December 31
2004 2003
ASSETS

Current assets:
Cash and cash equivalents $ 1,291,822 $ 1,843,135
Restricted cash 100,000 232,125
Accounts receivable, less allowance
for doubtful accounts 1,056,103 1,921,975
Inventories 943,644 966,433
Note receivable - 20,698
Prepaid expenses and other assets 145,805 92,600
----------- -----------
Current assets 3,537,374 5,076,966

Property, plant and equipment, net 295,063 407,489
----------- -----------

$ 3,832,437 $ 5,484,455
----------- -----------
----------- -----------

LIABILITIES AND SHAREHOLDERS'
(DEFICIT) EQUITY

Current liabilities:
Accounts payable and accrued
liabilities $ 2,080,064 $ 2,329,938
Deferred revenue 407,639 440,190
Current portion of obligations
under capital lease 2,781 10,458
----------- -----------

Current liabilities 2,490,484 2,780,586

Convertible debentures, net of
discount 1,506,322 772,920
Obligations under capital lease 1,854 4,155
----------- -----------

Total liabilities 3,998,660 3,557,661
----------- -----------

Shareholders' (deficit) equity:

Preferred Stock, $0.01 par value
per share: issued and outstanding
Nil shares in 2004 and 2003 - -
Common Stock, $0.001 par value per
share: issued and outstanding
- 16,571,732 shares in 2004 and
14,429,409 shares in 2003 16,572 14,429
Additional paid-in capital 89,582,484 77,725,383
Other equity 5,134,928 12,754,517
Accumulated other comprehensive loss (337,239) (305,236)
Accumulated deficit (94,562,968) (88,262,299)
----------- -----------

Total shareholders' (deficit)
equity (166,223) 1,926,794
----------- -----------

$ 3,832,437 $ 5,484,455
----------- -----------
----------- -----------



WaveRider Communications Inc.
CONSOLIDATED STATEMENTS OF LOSS


Years ended December 31
2004 2003
REVENUE

Product revenue $ 7,760,329 $ 11,552,992
Service revenue 1,781,275 1,525,563
----------- -----------

9,541,604 13,078,555
----------- -----------
COST OF REVENUE

Product revenue 5,290,182 7,338,875
Service revenue 902,590 560,141
----------- -----------

6,192,772 7,899,016
----------- -----------
GROSS MARGIN 3,348,832 5,179,539
----------- -----------
OPERATING EXPENSES

Selling, general and administration 4,975,289 5,366,858
Research and development 1,666,131 996,487
Depreciation and amortization 290,529 510,536
Bad debt (recovery) expense (1,437) 200,137
----------- -----------

6,930,512 7,074,018
----------- -----------
LOSS FROM OPERATIONS 3,581,680 1,894,479
----------- -----------
NON-OPERATING EXPENSES (INCOME)

Write-off of goodwill - 2,755,446
Interest expense 2,584,610 699,821
Foreign exchange loss (gain) 138,627 (273,909)
Interest income (4,248) (14,530)
----------- -----------

2,718,989 3,166,828
----------- -----------
NET LOSS $ (6,300,669) $ (5,061,307)
----------- -----------
----------- -----------
BASIC AND DILUTED LOSS PER SHARE $ (0.42) (0.39)
----------- -----------
----------- -----------
Weighted Average Number of Common
Shares 15,139,018 13,068,331
----------- -----------
----------- -----------


About WaveRider Communications Inc.

WaveRider Communications Inc. (www.waverider.com) is a leader in
broadband wireless deployments and technologies. WaveRider's Last Mile
Solution® non-line-of-sight 900 MHz networks enable communications
providers to establish full-saturation coverage networks and generate a
rapid return on their investment. WaveRider is committed to the
development of standards-based wireless technologies that support
advanced applications and address the needs of both the North American
and International markets. WaveRider is traded on the OTC Bulletin
Board, under the symbol WAVR.

Except for the historical statements made herein, this release contains
forward-looking statements that involve risks and uncertainties
including the risks associated with the effect of changing economic
conditions, trends in the development of the Internet as a commercial
medium, market acceptance risks, realizing expected revenue,
technological development risks, and seasonality. Risk factors also
include the company's ability to secure additional financing; the
company's ability to commercialize its products; the company's ability
to compete successfully in the future against existing or new
competitors; the company's ability to protect its intellectual property
and the assurance that the rights granted under patents or copyrights
that may be issued will provide sufficient protection to its
intellectual property rights; the company's success in enhancing
existing products and developing new products to keep up with the
technological advances in the data communications industry; the
continued availability of the license-exempt spectrum which is based on
regulation by U.S. and foreign governments; the company's ability to
avoid significant product liability exposure; the company's dependence
on a limited number of third party manufacturers; the company's ability
to execute its business plan and generate an overall profit and other
risk factors detailed in the Company's filings with the Securities and
Exchange Commission, including the company's annual report on Form
10-KSB as amended. Due to these factors, actual results could differ
materially from those expressed in forward looking statements by the
company.

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