TRW and Endgate Announce Merger Forming Endwave Corporation; Move Creates a Leading Provider of Broadband Wireless Internet Access Products

SUNNYVALE, Calif. TRW Inc. (NYSE:TRW) and Endgate Corp., the leading global provider of "first-mile" broadband engines for powering e-business gateways, have signed a definitive agreement to merge Endgate and TRW Milliwave Inc., a wholly owned TRW subsidiary, to create a new company, Endwave Corporation. The union creates a leading supplier of broadband access equipment, including specialized antennas, transceivers and Outdoor Units (ODUs) -- units that transmit and receive radio signals and serve as the "engines" of broadband wireless Internet access systems and cellular backhaul.

"Endwave s products will provide the cost-effective wireless solutions customers are demanding for the expansion of e-business," said Edward Keible, president, chief executive officer and director of Endgate Corporation, who will become Endwave president and CEO. "We are strategically positioned in a rapidly growing industry segment, and we begin operations with financial backing from TRW and Endgate and the unparalleled design, engineering and volume manufacturing strengths of both. We also will have a strong customer base that includes Nokia, Hughes Network Systems and other major broadband system developers."

Timothy W. Hannemann, TRW executive vice president and general manager of the Space & Electronics Group, said that the formation of Endwave advances TRW s strategy to create value through the execution of alliances, new ventures and mergers that bring the company s broad array of communication technologies to the marketplace. "TRW is a world leader in the manufacture of transceiver modules employing gallium arsenide millimeter-wave monolithic integrated circuits (GaAs MMICs) for broadband systems. Our transceiver capabilities fit perfectly with Endgate s products, which include transceivers, antennas and ODUs -- the outdoor units that enable high-speed, wireless telecommunications links. TRW s ownership in Endwave will expand our involvement in the broadband telecommunications marketplace."

Endwave products will include transceivers, antennas and ODUs already being produced by Endgate and TRW, as well as new products to be developed by Endwave. Industry analysts predict the worldwide market for these products will experience rapid growth over the next few years, due to the explosive expansion of the Internet and e-commerce.

Broadband wireless technology is expanding rapidly because it is relatively inexpensive, quick to install, and provides data rates up to 155 million bits per second -- more than 2,700 times faster than the modems used in today s personal computers. To achieve these data rates, broadband systems operate at radio frequencies above 15 billion cycles per second, a range where TRW MMICs excel. The transaction includes a supply agreement ensuring Endwave s access to TRW s advanced GaAs MMIC foundry.

The transceiver technologies for broadband access systems are also used for wireless infrastructure connectivity in cellular networks. As the density of cellular users continues to increase, this trend represents a strong growth opportunity for Endwave, according to Keible.

The closing of the merger is subject to regulatory approval. Endwave will be owned approximately 50 percent by TRW and 50 percent by Endgate s current shareholders. Both TRW and current Endgate shareholders will contribute cash to Endwave. This cash will be used to support Endwave s rapid growth in response to customer demand.

The new company will be headquartered in Sunnyvale, and maintain design and manufacturing facilities in Sunnyvale, Santa Clara and Diamond Springs, Calif.

About Broadband Wireless Access Technology

Although communications carriers and Internet Service Providers have invested heavily in recent years to enhance bandwidth capabilities in response to the growing use of multimedia and the Internet, businesses ability to take advantage of high bandwidth has been constrained by the "first-mile" problem. This statement refers to the inability to send outbound data and communications from the business to the local switching office or Internet access point at broadband frequencies. Current technologies based upon existing wire line infrastructure, such as XDSL and T1, are limited to a few hundred kilobits per second up to a few megabits. Fiberoptic technology provides virtually unlimited bandwidth but is expensive, costing up to $600K per KM and taking months or years to install.

Broadband wireless technology, on the other hand, is relatively inexpensive, quick to install, and today provides data rates up to 155 Mbits/sec (OC-3). Endgate has pioneered PTMP technology, making these systems even more cost effective by allowing the relatively expensive base-station transceivers and antennas to be shared by many customer units. This technology is also valuable for cellular backhaul systems, providing connectivity from the central switching point to the cellular antenna farms, especially as cellular carriers implement "3G" systems, providing Internet access to cellular customers.

About Endgate

Endgate Corporation (www.endgate.com) powers e-business gateways with first-mile broadband engines. The company develops and manufactures wireless broadband access products for linking carriers, ISPs and business users, including integrated transceivers, high-performance OutDoor Units (ODUs) and specialized gateway antennas. Endgate has over 20 patents covering its revolutionary antenna designs, and its Flip-Chip GaAs MCIC technology that forms the core of its highly miniaturized millimeter wave transceivers. Founded in 1992, Endgate is headquartered in Sunnyvale, California, and is privately held.

About TRW

TRW Inc. (www.trw.com) provides advanced technology products and services to the automotive, aerospace and information technology markets worldwide. TRW Milliwave Inc., a subsidiary of TRW Space & Electronics Group, is a leading manufacturer of high-performance MMIC-based modules for commercial telecommunications system developers.

CONTACT: Endgate Corporation, Jim Bybokas, 408/737-7300, x-114, jbybokas@endgate.com TRW, Jack Prichett, 310/812-5227, jack.prichett@trw.com Walt & Company Communications, Reena Spektor/George Millington, 408/496-0900, rspektor@walt.com, gmillington@walt.com