YDI Wireless and Terabeam Announce Expected Merger Closing Date

Falls Church, VA and Redmond, WA — June 9, 2004: Wireless systems providers YDI Wireless, Inc. (OTCBB: YDIW) and Terabeam Corporation today provided more details concerning their contemplated merger.

On May 28, 2004, the California Department of Corporations approved the terms and conditions of the proposed issuance of shares of YDI stock to the Terabeam stockholders in the merger and issued a permit to YDI to issue those shares.

The meeting of Terabeam stockholders to vote on the contemplated merger and related transactions has been scheduled for Monday, June 21, 2004. The merger is expected to be completed on June 22, 2004 assuming that the Terabeam stockholders approve the merger on June 21 and the other conditions to closing have been satisfied.

About YDI Wireless

YDI Wireless, Inc. is a world leader in providing extended range, license-free wireless data equipment and is a leading designer of turnkey long distance wireless systems ranging from 9600 bps to 1 Gbps for applications such as wireless Internet, wireless video, wireless LANs, wireless WANs, wireless MANs and wireless virtual private networks. Additional information about YDI Wireless as well as its complete product line can be found at the company's web site located at http://www.ydi.com or by contacting the company by telephone at 413-665-8551 or by email at IR@ydi.com.

About Terabeam

Terabeam is a leading provider of wireless fiber (broadband wireless) solutions that extend and optimize carrier and enterprise networks. The company's wireless fiber solutions use high frequency Millimeter Wave (60 GHz radio frequency) and Free Space Optics (invisible light beam) technologies. Operating at full line rates of 100 Mbps to 1.42 Gbps, MMW and FSO systems enable network service providers and business customers to achieve high bandwidth connectivity at significantly lower costs and deployment times than other high-data-rate technologies. Terabeam is ISO 9001 registered and certified. For more information, visit Terabeam's Web site at http://www.terabeam.com.

Safe Harbor Statement

Statements in this press release that are not statements of historical facts, including statements regarding the contemplated combination of YDI and Terabeam and the combined company’s business outlook or expected performance or developments, are forward-looking statements that involve risks, uncertainties, and assumptions. There can be no assurance that the combination described in this press release or any other combination transaction between YDI and Terabeam will be consummated. YDI’s, Terabeam’s, and the combined company’s actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including those relating to the companies’ ability and desire to satisfy the conditions to closing the transaction set forth in the definitive transaction documentation (including, without limitation, the need to obtain the approval of Terabeam’s stockholders); the substantial time and costs each company will be expending and incurring relating to a contemplated transaction; the ability to obtain any necessary regulatory approvals and clearances, including federal and state securities permits, registrations, qualifications, approvals, clearances, and/or exemptions, needed to consummate a transaction; the ability of the companies to integrate in a cost-effective, timely manner without material liabilities or loss of desired employees or customers; the risk that the expected synergies and other benefits of the transaction will not be realized at all or to the extent expected; the risk that cost savings from the transaction may not be fully realized or may take longer to realize than expected; reactions, either positive or negative, of investors, competitors, customers, suppliers, employees, and others to the transaction; the time and costs required to complete the contemplated transaction and then integrate the companies; management and board interest in and distraction due to the contemplated transaction and integrating the companies; the uncertain impact on the trading market, volume, and price of YDI’s stock, particularly in light of the large amount of YDI stock expected to be issued in the transaction; the uncertain effect of the contemplated transaction on YDI’s contemplated acquisition of Phazar and the two companies’ ability and desire to consummate that transaction; the possibility that the contemplated transaction could negatively impact the contemplated acquisition of Phazar and expose YDI to liability to Phazar; the uncertain effect of the contemplated transaction on YDI’s ability to have its common stock listed on the NASDAQ National Market or NASDAQ SmallCap Market; the possibility that the contemplated transaction could negatively impact YDI’s ability to have its common stock listed on the NASDAQ National Market or NASDAQ SmallCap Market; the downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in the companies’ industries and resulting impacts on their pricing, gross margins, and general financial performance; difficulties in predicting the combined company’s future financial performance; and risks arising from and relating to YDI’s recent acquisition of KarlNet, Inc. Further information on these and other factors that could affect the actual results of YDI, Terabeam, or the combined company is and will be included in filings made by YDI from time to time with the Securities and Exchange Commission and in the companies’ other public statements.

Terabeam has sent information to its stockholders in connection with these contemplated transactions, which included a request for a proxy. Terabeam and YDI urge Terabeam’s stockholders to read this information carefully before making a decision about the contemplated merger because those documents contain important information about YDI, Terabeam, the merger, the persons soliciting the proxies relating to the merger, their interests in the transaction, and related matters. In addition, YDI has made and may be making additional filings with the Securities and Exchange Commission in connection with these contemplated transactions. Investors, security holders, and other interested parties will be able to obtain free copies of these documents through the SEC’s web site at http://www.sec.gov and from YDI’s Investor Relations department.

For Further Information