Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

March 24, 2006 07:30 ET

Wi-LAN Reaches $1.8 Million Settlement with Industry Canada

CALGARY, CANADA--(CCNMatthews - March 24, 2006) - Wi-LAN Inc. (TSX:WIN) ("Wi-LAN" or "the Company") announced it has completed a Settlement Agreement with Industry Canada that will finalize its prior arrangements under an agreement with Technology Partnerships Canada ("TPC"). In the settlement, Wi-LAN will pay a total of C$1.8 million by April 30, 2006 in full settlement of its obligations under the TPC agreement.

Negotiation of the settlement was prompted by two factors: Wi-LAN defaulting on the agreement and the Company's recent plans for restructuring its business. Industry Canada officials responded constructively and quickly. Under the prior agreement, TPC funded $5.5 million of the $18.8 million R&D investment made to date by Wi-LAN on the programs. In return, Wi-LAN was required to issue $5 million in warrants of its common stock to the government, and was obligated to pay TPC royalties on product sales up to a maximum of $12.2 million. With the cash settlement, Wi-LAN relieves itself of these and any further obligations.

Upon full payment of the settlement amount, the Company will remove any restrictions on its use of the intellectual property ("IP") developed under the program, including hardware and software for the media access control ("MAC") and physical layer ("PHY") of WiMAX subscriber and base stations, along with the Libra MX W-OFDM system.

"This settlement allows Wi-LAN to proceed with and conclude a number of agreements that have been recently announced," said Bill Dunbar, President and CEO of Wi-LAN. "We believe the settlement is fair for both parties, and positions Wi-LAN to complete the sale of its non core assets."

Wi-LAN announced the exit from its products business on February 1, 2006 following a thorough review and assessment of strategic alternatives. On March 20, 2006 the Company announced the signing of a Letter of Intent to sell its IP Division to Fujitsu Microelectronics America, Inc. ("FMA"), subject to certain conditions. These and other actions will ultimately allow Wi-LAN to focus its full attention on maximizing the value of its strong patent portfolio.

About Wi-LAN Inc.

Wi-LAN is transforming itself into a company focusing and capitalizing on the value of its patent portfolio. Its focus and assets are central to the WLAN and WiMAX markets where the Company believes its patented technology is necessary for devices using the IEEE 802.11a and 802.11g standards (the 2nd generation Wi-Fi Alliance standards) and the implementation of WiMAX Forum Certified devices.

Wi-LAN is a charter member of the WiMAX Forum (www.wimaxforum.org). Additional information on Wi-LAN can be found at www.Wi-LAN.com.

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.

Contact Information

  • Wi-LAN Inc.
    Amir Nayeri
    Genoa Management
    1-866-430-6247
    Email: info@genoa.ca