WaveRider Communications Inc.
OTC Bulletin Board : WAVR

WaveRider Communications Inc.

March 21, 2006 10:13 ET

WaveRider Shareholders Approve Merger With Wave Wireless

TORONTO, ONTARIO--(CCNMatthews - March 21, 2006) -

Transaction Expected to Close On Or About March 24, 2006

WaveRider Communications (OTCBB:WAVR) today announced that its shareholders voted to approve the previously announced merger with Wave Wireless Corporation (OTC Bulletin Board: WVWC).

At a special meeting, held yesterday at WaveRider's corporate offices in Toronto, a majority of the shares outstanding voted in favor of the proposal to merge the two companies. Of the total votes received, 99.2% were voted in favor of the merger with Wave Wireless Corporation. The exact exchange ratio will be determined at closing, expected on or about March 24, 2006, based on the formula outlined in the plan of merger.

The merger creates a dynamic new company that offers a broad suite of wireless broadband solutions, a strong global distribution network, and a lower cost structure intended to position the company for long-term growth and profitability. The combined company will be called Wave Wireless Corporation and will be headquartered in Toronto.

"We're pleased with the shareholder support for the merger of WaveRider and Wave Wireless," said Charles W. Brown, Chief Executive Officer of WaveRider Communications. "This merger will benefit customers, shareholders and employees of both companies by uniting complementary products, core competencies and talents. The combined resources of both companies will enable Wave Wireless to compete more aggressively in the marketplace with a full range of solutions, including fixed wireless, mesh and mobile wireless products for multiple applications serving the WISP, telecommunications, government, Homeland Security, and safety and surveillance applications." Upon consummation of the merger, Mr. Brown will assume the position of Chief Executive Officer of Wave Wireless Corporation.

The merger brings together Wave Wireless' SPEEDLAN™ family of 2.4GHz, 4.9GHz and 5.8GHz mesh networking products and WaveRider's Last Mile Solution® non-line-of-sight, fixed and mobile wireless 900MHz products. The products will be marketed to a wide range of public and private sector companies in the rapidly growing communications, public safety, security and surveillance markets.

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 and 5.8 GHz networks enable communications providers to establish full-saturation coverage networks, deliver advanced communications services, 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 the North American and International markets. WaveRider is traded on the OTC Bulletin Board, under the symbol WAVR.

About Wave Wireless Corporation

Wave Wireless develops, manufactures, and markets highly secure and reliable wireless mesh routers to the telecommunications market worldwide. The Company's wireless mesh routers are designed to combine high performance, multiple operating frequencies and hardware AES encryption to provide networking professionals with the most flexible, scalable and robust mesh routers for integrated network requirements of Internet access and private networks including security and surveillance requirements. Cellular and personal communications service (PCS) providers utilize the Company's repair and maintenance business for a full range of services required to support technical issues associated with the installation, maintenance and operation of refurbished legacy Wave Wireless licensed products. For more information visit www.wavewireless.com or call 408-943-4200.

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to anticipated revenues, expenses, earnings, operating cash flows, the outlook for Wave Wireless' or WaveRider's markets and the demand for their products. Factors that could cause Wave Wireless' or WaveRider's actual results to differ materially from these forward-looking statements include the ability to achieve positive cash flow; their deteriorating cash position and their need to raise additional capital, and whether that capital is available on acceptable terms, if at all; the continued intense competition resulting in lower average selling prices; fluctuations in customer demand; reliance upon subcontractors; the timing of new technology and product introductions; and the risk of early obsolescence; and Wave Wireless' dependence on the sale of refurbished licensed radio products. Please refer to our reports and filings with the Securities and Exchange Commission, including our reports on Form 10-K, 10-KSB, 10-Q, 10-QSB and 8-K, for a further discussion of these risks and uncertainties. Also, do not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made or to reflect the occurrence of unanticipated events.

Participants in Solicitation

Wave Wireless, WaveRider, and their respective directors, executive officers, and other employees may be deemed to be participants in the solicitation of proxies from WaveRider shareholders with respect to the proposed transaction. Information about Wave Wireless' directors and executive officers is available in Wave Wireless' proxy statement for its 2005 annual meeting of shareholders, dated July 13, 2005. Information about WaveRider's directors and executive officers is available in WaveRider's annual report on Form 10-KSB for the year ended December 31, 2004. Additional information about the interests of potential participants will be included in the registration statement and proxy statement and other materials filed with the SEC.

Additional Information

Wave Wireless intends to file a registration statement, including a proxy statement of WaveRider, and other materials with the Securities and Exchange Commission ("SEC") in connection with the proposed transaction. We urge investors to read these documents when they become available because they will contain important information. Investors will be able to obtain free copies of the registration statement and proxy statement, as well as other filed documents containing information about Wave Wireless and WaveRider, at www.sec.gov, the SEC's website. Investors may also obtain free copies of these documents at www.wavewireless.com/about/investors.html. Free copies of WaveRider's filings are available at www.waverider.com.

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