Falls Church, VA — September 15, 2004: Terabeam Wireless, the business name of YDI Wireless, Inc. (NASDAQ:YDIW), a leading developer and supplier of broadband wireless solutions, today announced that it has repurchased 4,183,183 shares of its common stock from Michael F. Young. The aggregate purchase price for this stock was $6,500,000. The repurchased stock constitutes approximately 15.5% of the company's 26,979,418 shares of common stock outstanding prior to the repurchase.
Robert Fitzgerald, Terabeam Wireless' Chief Executive Officer, stated, "We are very pleased to announce this repurchase for a number of reasons. For example, we have significantly reduced our number of outstanding common shares. Given that Mike is no longer affiliated with the company, he had begun selling his shares in the market and had plans for additional significant sales. Our purchase removes that significant seller from the market. In summary, we believe this purchase is very beneficial to the company and has better positioned our stock for future market price increases."
Mr. Young stated, "This sale was an extremely difficult decision for me. In the end I simply couldn't pass up this opportunity for significant liquidity. I wish all the best for the company and its customers, stockholders, and employees."
Terabeam Wireless is the business name of YDI Wireless, Inc. Terabeam Wireless 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 1.44 Gbps for applications such as wireless Internet, wireless video, wireless LANs, wireless WANs, wireless MANs, and wireless virtual private networks. Additional information about Terabeam Wireless as well as its complete product line can be found at the company's website located at http://www.terabeam.com or by contacting the company by telephone at 413-665-8551 or by email at IR@terabeam.com.
Statements in this press release that are not statements of historical facts, including statements regarding Terabeam Wireless' business outlook or expected products, capabilities, performance, opportunities, or developments, are forward-looking statements that involve risks, uncertainties, and assumptions. Terabeam Wireless' 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 downturn and ongoing uncertainty in the telecommunications industry and larger economy; the intense competition in Terabeam Wireless' industries and resulting impacts on its pricing, gross margins, and general financial performance; difficulties in predicting Terabeam Wireless' future financial performance; the possibility that this stock repurchase could cause the stock price to decrease and expose the company to liability; and risks arising from and relating to Terabeam Wireless' recent acquisitions of Ricochet Networks, Inc., Terabeam Corporation, and KarlNet, Inc. and contemplated acquisition of Phazar Corp. Further information on these and other factors that could affect Terabeam Wireless' actual results is and will be included in filings made by Terabeam Wireless from time to time with the Securities and Exchange Commission and in its other public statements.
David L. Renauld
Vice President, Corporate Affairs
(413) 665-8551