Safaricom Expands Contract with interWAVE to Deliver Additional Portable GSM Networks in Kenya

Oct 28 2001

interWAVE® Communications (Nasdaq: IWAV - news), a pioneer in compact wireless voice communications systems and broadband wireless data networks, today announced additional orders from Safaricom, a Vodafone company and Kenya's first and leading mobile telephony provider. Safaricom will use interWAVE's containerized GSM network solution to expand its existing network into two additional community sites, with each deployment worth half a million dollars. These add-on orders not only strengthen interWAVE's relationship with Safaricom, but also allow interWAVE to help operators to ``reach the unreached,'' with interWAVE's containerized networks that can be drop shipped anywhere in the world, regardless of terrain or climate. interWAVE's networks can be connected via satellite, spanning any distance, directing voice and/or data traffic anywhere in the world using GSM terminals.

``interWAVE's ability to install a powerful cellular network in less than two weeks is unprecedented in the industry, and the equipment's reliability and high performance was proven during the Safaricom Marathon,'' said Michael Joseph, general manager of Safaricom. ``We are pleased to find a partner we can rely on to expand our GSM network under difficult and challenging conditions without any compromise in quality and reliability in delivering services to our subscribers. interWAVE is definitely providing us with a significant competitive advantage in today's market.''

interWAVE was selected as the provider due to its recent success deploying a reliable cellular network in less than two weeks under challenging terrain conditions at the Kenya Marathon fundraiser at the Lewa Wildlife Conservancy on July 1, 2001. As the demand for communications increases, additional sites are being identified.

``We are pleased to continue our relationship with Safaricom by providing them with our innovative containerized networks,'' said William Carlin, vice-president of worldwide sales and customer service for interWAVE. ``The scaleable and flexible attributes of our GSM solution are uniquely designed to extend Safaricom's services to these two additional remote sites where mobile communications capabilities are not readily available.''

interWAVE's GSM network solution provides the most compact, powerful, flexible and cost-effective solution for challenging-to-deploy areas of the world, or in circumstances that require additional capacity. With international gateway access, interWAVE's GSM network solution can seamlessly interoperate with an existing mobile or wireless network, making it the preferred solution for carriers looking to extend their existing networks. The size of a PC tower, interWAVE's solution is so compact that it can be deployed in a variety of environments -- vehicle-contained, airborne, or water-based -- delivering rapid, mobile communications services.

The solution's compactness and flexibility enabled interWAVE to install and get an entire cellular network running within a two-week time period to support the second annual Safaricom Marathon, a race heralded as being one of the toughest sports events in the world. Aside from the effects of the Kenya climate and the undulating dirt-track route, Safaricom is the only marathon to take place in a game reserve. Lewa's wildlife conservancy is the home of Kenya's most significant population of black and white rhinoceros, and during the race, giraffe cantered along the road in front of the leaders. With the combination of the heat, the 6,000 foot altitude, and the herd of animals, it was critical that a local communications network be available on-site to ensure the safety and health of the over 320 competitors from over 20 nations, including local Maasai and Samburu warriors.

In order to deliver on this tight deadline, interWAVE initially installed its solution in the middle of the night surrounded by armed park rangers to protect against the lion, rhinos and elephants milling about the area. The resulting communications abilities provided allowed the flying doctor service to quickly deal with heat exhaustion problems, helped the spotter planes and armed rangers to keep the runners protected more easily and enabled the eight water stations located on each 20 km lap to stand-up to the demand.

About interWAVE

interWAVE Communications International, Ltd. is a global provider of end-to-end compact cellular systems and broadband wireless data networks that offer the most innovative, cost effective and scaleable network solutions in the industry, enabling today's operators to ``reach the unreached.'' interWAVE's economical, distributed networks minimize capital expenditures while accelerating customer revenue generation due to its rapid and simple deployment of scalable IP and ATM broadband networks. interWAVE's highly portable mobile, cellular networks and broadband wireless solutions provide vital and reliable wireless communications capabilities for customers in over 50 countries. interWAVE's U.S. subsidiary is headquartered at 312 Constitution Drive, Menlo Park, California, and can be contacted at www.iwv.com or at (650) 838-2000.

About Safaricom Ltd

Safaricom Ltd is Kenya's leading Mobile Telephony provider. Created in 1997 as a fully owned subsidiary of Telkom Kenya, Vodafone Group Plc, the world's biggest Telecom company, acquired Safaricom in May 2000 with 40 percent stake and management. Safaricom's objective is to remain the leading mobile network provider in Kenya by focusing on quality of service. Safaricom will therefore be implementing best practices based on Vodafone's vast international experience and Telkom Kenya's unique knowledge of Kenyan market conditions. The result of this will ensure a superior quality of service that is customer focused and will benefit every user.

This news release contains forward-looking statements that are subject to known and unknown risks and uncertainties that could cause the results of interWAVE Communications International, Ltd. to differ materially from management's current expectations. These risks and uncertainties include, but are not limited to, the risks relating to interWAVE's history of losses, the expectation of future losses, reliance on a small number of customers, complexity of products, difficulties in introducing new or enhanced products, compliance with regulations and evolving industry standards, long sales cycles, intense competition, management of global operations, the ability to retain and motivate key employees, and acquisition related risk factors including potential for profit acceleration, dilution of shares outstanding, increases in debt absorbed and potential post-acquisition employee retention, as well as the Risk Factors discussed in the filings and reports made from time to time by interWAVE with the Securities and Exchange Commission. interWAVE assumes no obligation to update any forward-looking statements, which speak only as of their respective dates. 


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