Wi-LAN Inc.
TSX : WIN

Wi-LAN Inc.

March 22, 2006 07:30 ET

Wi-LAN Sells Major Broadband Wireless Product Lines to EION Wireless; Ultima 3, VIP and LIBRA MX Product Line Sold to Ottawa-Based Wireless Solution Provider

CALGARY, CANADA--(CCNMatthews - March 22, 2006) - Wi-LAN Inc. (TSX:WIN) (Wi-LAN or "the Company") today announced it has entered into a binding agreement to sell three of the Company's broadband wireless product lines - Ultima 3, VIP and LIBRA MX - to Ottawa-based EION Inc.(EION). This transaction further advances the Company's decision, announced in February of this year, 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, EION buys the assets along with the current orders in-hand of the three product lines. EION also acquires the global installed base with a network of over 120 resellers. EION assumes the responsibility of the warranty obligations of the installed base. Patents owned by Wi-LAN relevant to the product line acquired by EION will be subject to a non-exclusive, non-transferable license from Wi-LAN. Under a separate agreement, EION is purchasing from Wi-LAN an additional existing inventory of finished goods, components and test equipment relating to the products. In addition to the cash consideration paid to Wi-LAN, EION has agreed to pay certain quarterly royalties based on a percentage of the manufacturers cost for each Ultima3 and VIP product sold by EION. Detailed financial terms of the transaction were not disclosed.

The transaction is scheduled to close on or before April 18, 2006.

"This transaction will complete our actions to exit three of the four product lines that Wi-LAN had developed in a manner that benefits our shareholders, customers and employees," said Bill Dunbar, President and CEO, Wi-LAN Inc. "At the same time, it limits our future warranty obligations for these products while enabling Wi-LAN to benefit from EION's distribution capability and future sales under the royalty arrangement."

"Broadband wireless is emerging as a solution of choice for service providers, rural communities and digital home", says Dr. Kalai Kalaichelvan, Chairman and CEO of EION Inc. "Adding Wi-LAN's product lines to our wireless division's portfolio and combining the strength of the distribution channels brings an unmatched technological and business edge for EION's customers worldwide. With growing market interest in WiMAX, this transaction further strengthens EION's business innovation in partnerships and channels. This will accelerate the delivery of triple play over wireless solutions to the market. EION plans to strengthen the team in Calgary to grow the business and will ensure a seamless transition for Wi-LAN's customers", adds Dr. Kalaichelvan.

About EION Inc.

EION Wireless is a division of EION Inc., provider of the broadest line of IP solutions for data and voice over satellite, wired, and wireless networks. EION Wireless provides a broad range of products and solutions to its customers to design and deploy rugged point-to-point and point-to-multipoint outdoor wireless networks. EION's combination of carrier class IP experience, wireless networking skills, and security expertise brings highly reliable and secure wireless communication solutions to their clients. From isolated and inaccessible villages to congested and challenging urban environments, EION provides an unsurpassed broadband wireless solution. Detailed information on EION can be found at www.eionwireless.com.

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
    or
    EION Inc.
    Richard Kelland
    Marketing and Communications
    1-613-224-7818
    Email: Richard@eion.com