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Walker Wireless To Spend $6.5 Million on Spectrum

For immediate release

Walker Wireless To Spend $6.5 Million To Acquire Exclusive Spectrum

AUCKLAND, May 22, 2000 - Broadband wireless company Walker Wireless Limited announced today that it has signed a conditional agreement to pay $6.5 million to acquire exclusive management rights to two 8 MHz channels in the 2.3 GHz region of the radio spectrum.

Walker Wireless will acquire the spectrum from Canadian television and high speed Internet company, Craig Wireless, who previously held the rights to the two MDS (Multipoint Distribution System) channels.

"The acquisition of these frequencies will underpin our existing network infrastructure, complementing our general licence frequencies," says Walker Wireless Chief Executive, Paul Ryan. "As the band manager, Walker Wireless will have complete flexibility as to how it engineers its radio operations in these frequencies.

"The ownership of these management rights also enhances Walker Wireless' strategic options. For example, it will allow us, in conjunction with our partner community, to offer many additional value added services in future.

The management rights to the new frequencies run until 25 November 2010. Walker Wireless is currently evaluating equipment and technology for use in the new frequency bands.

The MDS specification was originally developed to distribute digital television. Last year the US FCC allowed it to be used for 2-way services, which makes it an ideal technology for high speed Internet and data transfer. The Walker Wireless network uses fixed radio points of presence that communicate directly with subscriber premises to service its rapidly growing customer base in Auckland, Wellington and Christchurch. The company currently uses 2.4 GHz and 5.8 GHz radio frequencies under general licence for local wireless (last mile) transmission from fixed points of presence (POPs). It connects these via "backbone" transmission arrangements, using a combination of fibre optic, digital microwave radio and other carriers. The company anticipates that, when fully deployed, its network will be accessible to 90% of the New Zealand population.

ENDS

Editors' Notes: About Walker Wireless Walker Wireless connects companies to the Internet, to other companies, and to multiple sites within one company by fast wireless links. As computer speeds increase, businesses need to transfer more information quickly and cheaply. While computer speeds have increased 50-fold in the last decade, modem and data speeds have generally only increased six-fold. And while telecommunications networks have upgraded to transfer data at many gigabits a second, most businesses are only connected to these networks via a twisted-pair copper pipeline that considerably slows the transfer of data. Walker Wireless provides broadband wireless access that is faster to install than fitting new cable connections, flexible enough to be adjusted to allow varying amounts of data to flow along it, and reduces its customers' data communications costs by 50%.

For further information contact Walker Wireless Paul Ryan Telephone: 09 522 3678 Mobile: 021 981 821 Email pryan@walkerwireless.com

Botica Conroy & Associates Allan Botica Telephone: 09 303 3862 Mobile: 021 400 500 Email allanb@bca.co.nz


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