Endwave and Nokia Networks Announce Multi-Million Dollar, Multi-Year Deal

Source: Endwave

Endwave s Technology to be Used in Nokia Network s Next-Generation Cellular Transmission Systems in Europe, Asia and the United States

Sunnyvale, CA. Endwave Corporation (Nasdaq:ENWV), a leading provider of radio frequency (RF) subsystems for wireless broadband access networks, today announced that it has signed a multi-million dollar contract with Nokia Networks to deliver Endwave s advanced transceivers. Nokia Networks plans to install these transceivers in its new FlexiHoppera microwave radios for use in its broadband next-generation cellular networks in Europe, Asia and the United States over the next two-and-a-half years.

With over one billion Web-enabled mobile devices projected to drive more than 20 percent of e-commerce transactions by 2003 (according to the Yankee Group), service providers are expected to require greater bandwidth beyond the capability of existing cellular networks. The constraints of existing mobile commerce (m-commerce) networks, which were originally designed to support low-bandwidth voice traffic, create an immediate need for higher capacity cellular infrastructure.

"This agreement strengthens our position as a key supplier of next-generation cellular broadband wireless subsystems," said Ed Keible, president and CEO of Endwave Corporation. "Our volume manufacturing capabilities coupled with our design expertise are enabling leading systems integrators and service providers such as Nokia to meet the growing demand for broadband wireless access and more robust mobile Internet connectivity."

"Nokia FlexiHopper microwave radios contribute significantly to our capability to quickly deploy cellular networks, which is crucial for our operator customers," said Pekka Soini, vice president and general manager, Wireless Broadband Systems, Nokia Networks. "We chose Endwave because of its technology and volume manufacturing capability to produce superior, customized transceivers for our FlexiHopper radio."

This new contract is a follow-on to a contract that was in effect between Nokia and TRW, Inc., and performed by TRW s wholly-owned subsidiary TRW Milliwave prior to the merger of TRW Milliwave and Endgate Corporation to form Endwave Corporation in March 2000. Endwave began shipping units to Nokia under a memorandum of understanding predating this new agreement on October 1, 2000, and will continue to deliver its transceivers to Nokia over the next two-and-a-half years. Endwave s transceivers are customized to seamlessly integrate with Nokia s FlexiHopper microwave radios, combining the high frequency transmit and receive functions of a radio system into one package, which can be used for many communication needs in cellular, fixed and dedicated networks.

About Endwave s Transceivers

Endwave provides a complete line of high-performance, low-cost transceivers, the primary building blocks of microwave and millimeterwave radios. Endwave transceivers enable systems integrators to rapidly build point-to-point and point-to-multipoint radios for high-bandwidth connectivity and broadband Internet access to businesses. Endwave transceivers are also essential to the build-out of second and third generation (2G and 3G) cellular infrastructure for the emerging mobile Internet market, meeting the growing requirement for data and graphic-intensive mobile Internet applications. Leveraging the company s state-of-the-art MMIC (Microwave Monolithic Integrated Circuit) and revolutionary Flip-Chip MCIC (Multi-Chip Integrated Circuit) technology, Endwave transceivers contain all the necessary RF functions, such as multipliers, amplifiers, up and down converters, frequency sources, IF and control circuitry.

About Endwave

Endwave Corporation (Nasdaq:ENWV) provides radio frequency (RF) subsystems for wireless ultra-band access networks. The company develops and manufactures products used in high-speed cellular backhaul, point-to-point access and point-to-multipoint access applications. These products include RF modules, integrated transceivers, ultra-band antennas and high-performance OutDoor Units (ODUs). Endwave has more than 30 issued patents covering its core technologies including semiconductor, circuit and antenna designs as well as its Flip-Chip GaAs MCIC technology. Endwave Corporation is headquartered in Sunnyvale, Calif. (http://www.endwave.com).

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

Statements in this press release may contain forward-looking statements within the meaning of the Federal securities laws and are subject to the safe harbors created thereby. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: the risks that products will fail to achieve market acceptance, the timing of customer orders, delays in the design process, the length of our sales cycle, our ability to develop, introduce and market new products and product enhancements, changes in product mix or distribution channels; the demand for wireless networking products and end-user products that incorporate wireless technology; competitive technologies; and technological difficulties and resource constraints encountered in developing and/or introducing new products. Forward-looking statements contained in this press release should be considered in light of these factors and those factors discussed from time to time in the company s public reports filed with the Securities and Exchange Commission, such as those discussed under "Risk Factors" in the Company s report on form S-1, which was declared effective on October 16, 2000.

Contact: Endwave Corporation Gary Gray Tel: 408/522-3100 gary.gray@endwave.com or Walt & Company Communications: George Millington Tel: 408/496-0900 gmillington@walt.com