For Immediate Release
October 11, 2000

AirNet Signs Licensing Agreement With ArrayComm To Support Launch Of New Super Capacity Base Station

Adaptive array technology multiplies available bandwidth, speeds move to wireless data

MELBOURNE, Fla. & SAN JOSE, Calif -- AirNet Communications Corporation (Nasdaq:ANCC) today announced that it has signed an agreement with San Jose-based ArrayComm to support the launch of AirNet's new super capacity base station. The move follows AirNet's September announcement of its new AdaptaCell™ super capacity base station, a leading-edge solution that will dramatically increase wireless operators' capacity and performance - and speed the industry's move to the wireless Internet.

The new AdaptaCell super capacity base station - planned to be available in mid-2001 - will be built on AirNet's current broadband, software-defined base station platform, with ArrayComm's IntelliCell® adaptive array technology. IntelliCell achieves extraordinary gains in spectral efficiency - translating into significant increases in network performance - by focusing radio signals on individual handset antennas instead of broadcasting them throughout the cell.

IntelliCell has proven its value in commercial mobility systems serving more than 3.5 million subscribers via 35,000 base stations throughout the world. The technology has enabled increases in system capacities by as much as a factor of 20, while provisioning wireless data rates of up to 128kbps.

"We are pleased to have found such an experienced partner in ArrayComm and look forward to working closely with them on the upcoming launch of the AdaptaCell super capacity base station," said Lee Hamilton, president and CEO of AirNet. "By bringing together both companies' technologies and expertise onto one single platform solution, we will be able to provide operators with not only the highest capacity in the industry, but twice the data rate of current systems, as well - all without having to deploy additional base stations."

"ArrayComm looks forward to working with AirNet to create the world's first adaptive array-enabled GSM base stations, providing wireless carriers with dramatic increases in revenue-generating capacity," said Sam Endy, executive vice president and general manager of ArrayComm. "Integrating ArrayComm's IntelliCell technology into AirNet's AdaptaCell super capacity base station will enable the growth of the wireless Internet on GSM networks."

IntelliCell brings several key benefits for carriers transitioning from current wireless standards to GPRS and EDGE. For example, AirNet's new AdaptaCell solution will provide universal access to high-speed data on existing radio networks. Competitors' solutions provide high-speed data in only the central part of the existing cell, requiring operators to install up to five additional base stations to cover the same area.

In addition, the AdaptaCell super capacity base station will improve the quality and quantity of network throughput - maximizing use of the operator's radio spectrum. This improved throughput will enable the new super capacity base station to handle dramatically more traffic in any given cell. This capacity improvement will enable operators to significantly increase the number of users within their coverage area, and provide additional high-speed services, such as the wireless Internet, without adding new base stations or towers.

Yet another benefit to operators will be the ability to improve the quality of voice and data communications on their networks. Communication quality and system capacity, in traditional systems, are limited by interference caused by radio signals broadcast over a wide area to reach a single end user. Most of this signal power is wasted. In contrast, IntelliCell adaptive array technology reduces interference, improves voice quality and conserves signal power by focusing energy directly toward the end user.

Finally, since the base stations are software-defined, the operators can expand or upgrade their systems to include these new capabilities easily - typically by switching the software, not changing out hardware, as with traditional systems.

About AirNet Communications

AirNet Communications Corporation provides wireless base stations and other telecommunications equipment designed to allow service operators to cost-effectively offer simultaneous wireless high-speed Internet and voice services to mobile subscribers. The Company's AdaptaCell™ incorporates a patented radio architecture that is designed to enable operators to offer these services by upgrading base station software rather than deploying new base station hardware. The Company's AirSite® Backhaul Free™ Base Station carries wireless voice and data signals back to the wireline network without a physical communications link - usually a digital T1 phone line. As a result, an operator's fixed network operating costs may decrease substantially.

AirNet Communications Corporation's award winning wireless base station products, based on over 60 patents either issued or filed, provide a cost effective, future proof solution for wireless operators as they deploy and expand their networks. AirNet's patented broadband, software-defined AdaptaCell™ base station provides a high capacity base station with a software upgrade path to the wireless Internet.

The AdaptaCell's™ patented technology means no more time consuming and expensive hardware upgrades - the wireless Internet is only a software upgrade away. And, with software control, AirNet lets service providers support multiple protocols simultaneously avoiding costly overlays.

The AirSite® Backhaul Free™ Base Station has award winning architecture which eliminates the need for a physical backhaul link, thus reducing operating costs. AirNet base station products won the prestigious GSM World Award for technical innovation for AdaptaCell™ software upgrade to the wireless Internet and for AirSite's revolutionary wireless backhaul capability. AirNet is a wireless base station technology leader. AirNet can be contacted in the U.S. at 321-984-1990 or visit us at www.airnetcom.com

About ArrayComm

Named one of Wireless Week's 25 companies to watch in the new millennium, ArrayComm, Inc., headquartered in San Jose, Calif., is the global leader in fully adaptive smart antenna-based wireless communications. Its founder, Martin Cooper, was named one of the Top 10 Entrepreneurs of 2000 by Red Herring magazine and has been inducted into the RCR Wireless Hall of Fame for his accomplishments in the wireless industry.

ArrayComm's patented IntelliCell® adaptive array technology increases bandwidth - the amount of revenue that can be generated over scarce spectrum resources. The technology maximizes spectral efficiency by greatly reducing RF interference, resulting in exceptional increases in capacity, coverage and quality of service for all wireless networks. IntelliCell focuses radio signals directly on user locations, rather than broadcasting signals over wide areas, as conventional cellular technology does today. The technology already has proven immensely valuable for operators of large-scale systems worldwide, serving more than 3.5 million subscribers via more than 35,000 base stations.

# # #

AirNet Communications:
Gary Pacilio
Director of Marketing and Corporate Communications
+1 321.953.6609
investor@airnetcom.com

ArrayComm Contact:
Mark McHarry
+1 408.952.1882
mark@arraycomm.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not historical information are forward-looking statements that relate to future events or our future financial performance, including statements regarding our expectations, beliefs, plans, estimates, intentions or strategies for the future. Forward looking statements include statements regarding the transition and evolution to high-speed data and wireless Internet services, future sales to customers and customer deployment plans. All forward-looking statements included in this release are based upon information available to AirNet Communications Corporation as of the date hereof and we assume no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause our actual results to differ materially from those projected. Potential risks and uncertainties include, but are not limited to, our historical and future losses, our limited operating history, and fluctuations in our quarterly revenues and operating results. These and other risks are discussed in Company filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 1999.

Note to Editors: AirNet® and AirSite® are registered with the U.S. Patent and Trademark Office. AdaptaCell™, Backhaul Free™ Base Station, and We're Ready for Anything™ are trademarks of AirNet Communications Corporation. Other names are registered trademarks or trademarks of their respective companies or organizations



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