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Wi-LAN Completes Sale of Technology Development Division to Fujitsu Microelectronics America; Final Agreement Reflects Wi-LAN's Transition into a Licensing Company
CALGARY, ALBERTA May 30, 2006 -- Wi-LAN Inc. ("Wi-LAN" or "the Company") today announced that it has completed the sale of its technology development division to Fujitsu Microelectronics of America, Inc. ("FMA"), for cash proceeds of $2M USD, as per the terms of the Letter of Intent announced on March 20, 2006 as well as other financial considerations. Additional royalties per unit would apply once a certain number of semiconductor units are produced. Wi-LAN has agreed to sell its entire technology development division; this includes the contracts for all of Wi-LAN's technology development staff, and all 802.16d-like standards-based MAC and PHY technologies. In addition, FMA purchases a license to Wi-LAN's patent portfolio for 802.16d-like products and services, which includes OFDM and MAC licenses. The agreement closed Wednesday, May 25. Wi-LAN has not sold any of its patents as a result of this transaction. "Closing this deal with FMA is the last internal milestone in the transformation of Wi-LAN into a pure patent licensing company", said Dr. Hatim Zaghloul, Chairman of the board of directors of Wi-LAN. "Wi-LAN can now build on the recent addition of James Skippen as CEO, and the filed lawsuit against D-Link Canada, to license and protect its portfolio of key communications patents. This agreement is not only a sale agreement; it is a license agreement with future royalties at the same time." "We have collaborated with Wi-LAN since 2002 as we have together advanced WiMAX technology. We are pleased to continue working with Wi-LAN's talented engineering team and wish Wi-LAN success as the company moves to its new business model," said Kazuyuki Kawauchi, president and CEO of Fujitsu Microelectronics America. FMA has already hired the vast majority of Wi-LAN's technology development staff effective May 1. This agreement supersedes all prior agreements between the two companies. About Wi-LAN Inc. Wi-LAN holds a varied portfolio of essential patents in large, existing and emerging industries: CDMA2000, WiFi and WiMAX. Wi-LAN has licensed its patents to a few companies. Wi-LAN is a charter member of the WiMAX Forum (www.wimaxforum.org).
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