Independent Wi-LAN Shareholders and Inventors

April 04, 2006 18:25 ET

Wi-LAN Shareholders and Inventors Say: Patent Infringers are Getting Away Unpunished

CALGARY, ALBERTA--(CCNMatthews - April 4, 2006) - Independent Wi-LAN Shareholders and Inventors:

Proposed alternative slate of director nominees to act aggressively to pursue infringers of Wi-LAN's patents in WiFi, CDMA, and WiMAX products.

Dick Tchairdjian reports - "This year, Wi-LAN's Annual and Special Meeting of Shareholders will be different from past ones. Why? Because for the first time, shareholders will have the ability to democratically elect one of two slates of director nominees they believe will best represent their interests.

A group of independent Wi-LAN shareholders, owning approximately 15% of the shares of the company, have proposed an alternative list of director nominees in this year's management proxy circular. This list includes Hatim Zaghloul, co-inventor of Wi-LAN's fundamental patents, who recently resigned in protest citing dissatisfaction and frustration with the current Wi-LAN Board.

The proposed list of alternative slate of director nominees is:

- Dr. Zaghloul

- Dr. Michel Fattouche

- Dr. Robert Schulz

- Mr. David Tilston

- Mr. Jay Pazos

More information about their background, current occupation, number of shares held, and any past positions held at Wi-LAN, can be found on a website specially set up to help elect the alternative slate of director nominees: www.saveWi-LAN.com.

More significant is the fact these nominees are major shareholders in Wi-LAN and represent approximately 15% of the total outstanding shares in the Company. With this kind of large ownership in Wi-LAN, the proposed alternative director nominees have a strong incentive to ensure Wi-LAN ultimately succeeds in maximizing shareholder value. In contrast, Wi-LAN's slate of director nominees proposed by management holds a combined total of only 128,888 shares.

Wi-LAN must proceed aggressively with lawsuits against infringers like manufacturers of devices that use WiFi chips IEEE 802.11a/g standards. According to the WiFi Alliance, there were more than 120 millions chips manufactured in 2005. Semiconductor companies that manufacture these chips and companies that use the chips to manufacture electronic devices such as laptop computers and other relevant wireless devices, are infringing on one or more of Wi-LAN's patents. This group of shareholders believes Wi-LAN owns one of the most fundamental portfolios of patents in today's rapidly growing telecommunications industry. The potential to collect unpaid licensing fees is even bigger once one includes royalties from third (3G) and fourth (4G) generation cellular devices using CDMA, and WiMAX technologies in the future."

"This group of shareholders envisions a more attractive valuation for Wi-LAN that is in line with the USD$600 - $800 million that Qualcomm paid to acquire Flarion last year," said Dick Tchairdjian, the spokesperson for the group; "Furthermore, in light of the recent USD $613 million settlement between Research in Motion and NTP, this group believes more than ever similar potential settlements are possible for Wi-LAN -- if the right people are installed at its helm."

Mr. Tchairdjian continues: "Our proposed alternative slate of director nominees plan to move fast against companies who are infringing on Wi-LAN's patents. As well, they plan to hire the best CEO available with proven experience in IP enforcement strategies."

"We call on all concerned Wi-LAN shareholders to vote FOR our proposed alternative slate of director nominees on April 20, 2006 by voting AGAINST the nominees recommended by Wi-LAN."

For more specific instructions on how to vote, detailed strategic information, and other discussions, interested parties are invited to visit a special website dedicated for this purpose: www.SAVEwi-LAN.com.

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 the enforceability of the Company's patents, the future size of the target markets, the ability to retain adequate legal counsel and the company's ability to attract and retain key employees and Directors.

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 the Independent Shareholders on the dates they are made and expressly qualified in their entirety by this notice. The Independent Shareholders assume no obligation to update forward-looking statements should circumstances or estimates or opinions change.

Contact Information