Falls Church, VA — September 22, 2004: Terabeam Wireless, the business name of YDI Wireless, Inc. (NASDAQ:YDIW), a leading developer and supplier of broadband wireless solutions, today announced the launch of the Marquee Series, a broad portfolio of solutions for broadband wireless networking.

The hallmarks of the Marquee Series solutions are its:

• Power:
  Marquee offers an unprecedented combination of over-the-air data rate (as high as 36 Mbps), range (in excess of 30 miles), and near-line-of-sight communication (utilizing orthogonal frequency division multiplexing).
• Flexibility:
  Marquee is available in versions operating at various license-free and licensed frequency bands (4.9 GHz and 5.8 GHz available now; 2.4 GHz to be introduced later in the year), in point-to-point or point-to-multipoint configurations, and with choices of enclosures and antennas.
• Scalability:
  Base stations can be deployed to serve hundreds of clients; for example, one base location can be configured to serve over 300 simultaneous users while distributing over 100 Mbps of cumulative data. In addition, the award-winning TurboCell(r) protocol eliminates hidden node problems or interference between clients, thus maintaining throughput as clients are added to the network.
• Suitability for Outdoor Environments:
  The solutions have been engineered from the outset to withstand conditions in the outdoors and some of the harshest terrains.
• Enablement of Public Safety Applications:
  The Marquee 49, utilizing the first FCC-certified 4.9 GHz radio, allows public safety organizations to take advantage of spectrum dedicated by the FCC for their use.

Robert Fitzgerald, Terabeam Wireless' Chief Executive Officer, stated, "The Marquee solutions offer an awesome combination of power, flexibility, and value. Service providers, enterprises, municipalities, and public safety organizations will find that Marquee solutions can be developed to suit virtually any application or environment."

Additional Features and Benefits of the Marquee Series

• Adaptive Dynamic Polling:
  In traditional 802.11 wireless networks, multiple clients transmitting data to a base station simultaneously will cause traffic collisions, necessitating retransmissions and reducing throughput. Marquee base stations coordinate traffic flow from the clients through a polling mechanism which constantly adapts itself based on client traffic.
• Packet Aggregation:
  Marquee also increases throughput by aggregating smaller packets into a super-packet prior to transmission, thus making more efficient use of spectrum.
• Bandwidth Management at the Client:
  By managing bandwidth at the subscriber unit rather than centrally, the system preserves precious spectrum and eliminates the need for an external bandwidth manager.
• Enhanced Security:
  Marquee provides two-way authentication between the client and the base, as well as AES, DES, Blowfish and WEP+ encryption.

About Terabeam Wireless

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.

Safe Harbor Statement

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 of changes in applicable FCC regulations and certification procedures and requirements; 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.

For Further Information

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