YDI Wireless Announces License-Free EtherLeap™ Product Availability

Contact: David L. Renauld (Vice President, Corporate Affairs)
Phone: 413-665-8551

Falls Church, Virginia — June 30, 2003: Telaxis Communications Corporation d/b/a YDI Wireless (OTCBB:TLXS), a leading developer and supplier of broadband wireless solutions, today announced that its first EtherLeap™ product has been certified by the Federal Communications Commission for use in the 24 GHz license-free band and is available for purchase. This first EtherLeap™ product expands YDI Wireless' product offerings operating in license-free radio bands. The design can be readily tailored to operate in licensed 24 through 28 GHz frequency bands as well.

An increasing number of wireless communications products operate in the lower license-free bands at 2.4 GHz and 5.8 GHz. This proliferation has resulted in interference in some geographic areas. The EtherLeap™ product was specifically designed to operate in the uncrowded 24 GHz band to mitigate these interference issues while maintaining the lower cost and quicker time to deployment obtained by operating in an unlicensed frequency band.

The product is a point-to-point wireless Ethernet link. It has an over-the-air data rate of 11 Mbps and operates in Time Division Duplex (TDD) mode. It uses Direct Sequence Spread Spectrum (DSSS) modulation and features an adaptive data rate technology to ensure the integrity of the link under many adverse conditions. This allows for smooth changes in the data rate instead of an abrupt loss of service. The product can provide line of sight connections of up to 3 miles.

The EtherLeap™ product provides flexibility by being deployable in a large variety of network architectures. It comes pre-configured and is able to interface seamlessly with Ethernet networks. Since the product is based on the 802.11 MAC layer, it provides transparent point-to-point connectivity. The unit comes with an integrated one-foot dish antenna. Because the radio is located at the antenna, extending the Ethernet cable will not affect the operating range. It requires only 25 watts and, since it gets its power from the Ethernet cable, there is only one cable to run from the integrated outdoor unit to the customer's indoor layer-2 switch or router. The unit also features 128-bit WEP-Plus over-the-air encryption which can be enabled for added security.

The EtherLeap™ product can be used in a wide range of applications. It can bridge "hot spots" by providing connectivity outside the 2.4 GHz and 5.8 GHz bands. It can also bring an Internet backbone to a WIPOP (Wireless Internet Point of Presence). It can bridge Ethernet local area networks (LANs) and connect remote servers to LANs while managing a large number of client MAC addresses on each side of the link. Its ease of installation and operation makes it ideal for disaster recovery and emergency network restoration applications. It can also be used as a redundant link to a Free Space Optics (FSO) link. While it may not provide the speed of an FSO link, it will work reliably to provide some level of connectivity if the FSO link goes down due to fog or any other reason.

The bottom line is that typical end users don't particularly care whether their connectivity is provided by a 2.4 GHz, a 5.8 GHz, or a 24 GHz wireless link - but they do want reliable service. The EtherLeap™ product is a new means of providing that reliability free from interference. More information on this product can be found on the company's web site at: http://www.ydi.com/products/etherleap.php.

About YDI Wireless

Telaxis Communications d/b/a YDI Wireless represents the recent combination of Young Design, Inc. and Telaxis. This combination brought together Young Design's license-free products that extend the range of IEEE 802.11 wireless local area network systems, point-to-point wireless backhaul products, diverse and broad customer base, and deep market and industry experience with Telaxis' high-frequency millimeter-wave expertise and FiberLeap™ and EtherLeap™ products. More information about YDI Wireless can be obtained from the company's web sites at www.ydi.com and www.tlxs.com or by contacting the company by telephone at 413-665-8551 or by email at IR@ydi.com.

Safe Harbor Statement

Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from the results anticipated in these forward-looking statements due to risks arising from and relating to the recent combination of Telaxis Communications and Young Design and our ability to achieve the contemplated benefits of that combination; the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in our industry and resulting impacts on our pricing, gross margins, and general financial performance; and the other factors discussed in our filings made from time to time with the Securities and Exchange Commission and in our other public statements.