Wi-LAN Reports Fourth Quarter Fiscal Year 2007 Financial Results

OTTAWA, Canada – January 10, 2008 – Wi-LAN Inc., a leading technology innovation and licensing company, today announced financial results for the fourth quarter and fiscal year ended October 31, 2007. All financial amounts are expressed in Canadian dollars.

Operating & Financial Review

(see table in PDF)

Fourth quarter revenues were $7.2 million, which included both cash and in-kind consideration consisting of patents valued at $4.6 million. Management valued these patents based in part on a valuation report prepared by a major accounting firm. Pro forma earnings amounted to $4.9 million or $0.05 per diluted share. Operating expenses were $4.2 million, reflecting growth in the Company's workforce and increased legal expenses. Total expenses were $8.1 million, which included $0.8 million of stock-based compensation expense and $3.9 million of depreciation and amortization expense resulting from increases in Wi-LAN's patent portfolio, both non-cash charges. Interest income amounted to $1.1 million during the quarter. Net earnings on a GAAP basis amounted to $1.2 million or $0.01 per diluted share.

Fourth quarter revenues do not include initial cash payments from a number of license agreements that were signed in the third and fourth quarters of fiscal 2007, including an agreement with Fujitsu Limited and an agreement with an unnamed party signed in the third quarter of fiscal 2007. Cash payments from these agreements will start to be included in revenues in the first quarter of fiscal 2008.

In fiscal 2007, Wi-LAN generated revenues of $61.3 million. Pro forma earnings amounted to $53.2 million or $0.66 per diluted share. Operating expenses amounted to $13.4 million. Total expenses were $36.8 million, which included $2.2 million of stock-based compensation expense, $7.8 million of deprecation and amortization expense and a provision for income tax of $15.6 million, all non-cash charges. Interest income amounted to $3.2 million. Net earnings on a GAAP basis amounted to $27.6 million or $0.34 per diluted share.

Financial Position

(see table in PDF)

In the fourth quarter of fiscal 2007, cash and cash equivalents decreased by $9.0 million to $91.5 million at October 31 2007, due mainly to costs associated with the purchase of patents.

For the fiscal year ending October 31, 2007, Wi-LAN’s cash position increased by a total of $74.9 million, including $66 million from the sale of shares in December 2006 and March 2007, $12.2 million generated from continuing operations, and $5.8 million received upon the acquisition of Tri-Vision. The Company's cash equivalents include term deposits, GICs and other similar financial instruments. The Company’s cash equivalents do not include any Asset Backed Commercial Paper.

The Company's patents and other intangibles have grown from a net book value of $9.8 million at October 31, 2006 to a net book value of $147.0 million at October 31, 2007 including V-chip patents and other intangibles acquired in the purchase of Tri-Vision, patents received in licensing agreements with Nokia, Fujitsu and an unnamed licensee valued at $42.1 million as well as other patents acquired during the fiscal year.

Results for fiscal year 2006 are generally not comparable to those of fiscal 2007, as Wi-LAN was in the process of transforming itself into a licensing business, and discontinuing its products manufacturing and engineering services businesses in the 2006 periods.

Management Comments

“Wi-LAN achieved significant operating and financial accomplishments in fiscal year 2007,” said Jim Skippen, President & CEO. “In the fiscal year we generated record revenue and record earnings, and acquired Tri-Vision International. We signed 20 wireless and V-chip licensing agreements, many of which strengthen our recurring revenue base and demonstrate Wi-LAN's ability to monetize, through negotiation, our portfolio of patented innovations. In addition, we strengthened our team and completed a number of strategic patent acquisitions.”

“In 2008, we look to build on our accomplishments of 2007. We hope that a growing momentum for negotiated licenses, particularly in the Wi-Fi, WiMAX and V-chip markets, along with the determined efforts of our licensing teams will generate additional license agreements. Building upon Wi-LAN's rich history of research and development, we hope continuing efforts in this area will result in important innovations. We are confident that our activities in 2008 will enhance long-term shareholder value.”

Operating Expense “Guidance”

It has been Wi‑LAN's practice not to provide guidance on the range of expected future revenues and earnings, given the relatively early stage of its development in licensing as well as the difficulty in predicting the timing and value of patent acquisition opportunities and possible future litigation, both of which could require significant investment. In order to assist investors and other interested parties in their understanding of Wi‑LAN's performance, management believes that operating expenses for the fiscal year 2008 will likely be in the range of $22.0-27.0 million, based on current plans and expectations including staff-related and legal expenses.

Conference Call Information – January 10, 2008 – 10 AM EST

Wi-LAN will conduct a conference call to discuss its financial results today at 10:00 AM Eastern Standard Time. Wi-LAN CEO, Jim Skippen and acting CFO, Phil Martin, will be on the call.

• Callers from Canada or the United States: 1.866.585.6398 (Toll Free)

• Callers from other locations: 1.416.849.9626 (International)

• To join by webcast: http://www.wi-lan.com/

About Wi-LAN

Wi-LAN, founded in 1992, is a leading technology innovation and licensing company. Our portfolio of patented inventions applies to a wide range of electronics and communications products. Some of the fundamental technologies covered by Wi-LAN's patents include: CDMA, DOCSIS, DSL, GSM/EDGE, V-chip, Wi-Fi and WiMAX. Wi-LAN has licensed its intellectual property to a growing number of companies around the world. For more information: http://www.wi-lan.com/.