Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

April 04, 2006 07:00 ET

Wi-LAN Sells LIBRA 5800 Product Line to GIL Technology

CALGARY, CANADA--(CCNMatthews - April 4, 2006) -

Sale completes announced strategy of exiting the equipment business

Wi-LAN Inc. (TSX:WIN) (Wi-LAN or "the Company") today announced it has entered into a binding agreement to sell the LIBRA 5800 product line to Taiwan-based GIL Technology. This transaction completes the Company's decision to exit the equipment business in an orderly manner. The Company is not selling any of its patents as a result of this transaction.

Under the terms of the agreement, GIL Technology will buy the assets along with the current orders in-hand of the LIBRA 5800 and assumes the responsibility of the warranty obligations and customer service of the installed customer base. GIL Technology will be subject to a non-exclusive, non-transferable license from Wi-LAN for any patents utilized in the design of the Libra 5800. In addition to the cash consideration paid to Wi-LAN, GIL Technology has agreed to pay certain quarterly royalties based on a percentage of the manufacturer's cost for the LIBRA 5800 product sold by GIL Technology. Detailed financial terms of the transaction were not disclosed. The transaction was effective as of March 30, 2006.

"This transaction completes our actions to exit the equipment business in a manner that benefits our shareholders, customers and employees," said Bill Dunbar, President and CEO, Wi-LAN Inc. "I'm delighted that all of our current broadband wireless product lines will continue to be available and supported."

"The acquisition of Wi-LAN's Libra 5800 is in line with the company's vision to strengthen our product offering in the wireless technology segment," says David Chen, CEO of GIL Technology Inc.

"We are excited to continue to offer the LIBRA 5800 product family to Wi-LAN's extensive worldwide distribution channels and customers", says Vincent Chen, VP, Wireless Division of GIL Technology. "Our long-term vision is to use the LIBRA 5800 as a stepping-stone to enter the 5.8 GHz WiMAX market."

About GIL Technology

GIL Technology Co Ltd is a Taiwan based company specializing in providing communication solutions and multimedia software in Asia. Having vast experience in both telecom and IT industry, GIL Technology offers a wide range of wireless related products, ranges from application software for 3G operators to enhance their service offer, to wireless broadband solution for Network infrastructure. As a leading wireless solution vendor in Taiwan, GIL Technology was one of the selected companies by Taiwan Committee of Communications Industry Development (www.communication.org.tw) to receive strategic support to develop next generation Metro Wireless Network solution. For more information, please visit our website at www.gil.com.tw.

About Wi-LAN Inc.

Wi-LAN is a global provider of broadband wireless communications solutions. Wi-LAN believes its portfolio of patents is necessary for the implementation of WiMAX Forum Certified devices and devices using the IEEE standards 802.11a and 802.11g (the 2nd generation Wi-Fi Alliance standards). Wi-LAN is a charter member of the WiMAX Forum (www.wimaxforum.org). Detailed 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