FMA Intends to Use Division to Develop Further WiMAX Products
CALGARY, Canada – March 20, 2006 – Wi-LAN Inc. (TSX:WIN) today announced it has entered into a Letter of Intent to sell its Intellectual Property (IP) Division to Fujitsu Microelectronics America, Inc. (FMA). The sale is subject to a number of conditions including reaching agreement on the terms of a definitive purchase and sale contract and the approval of the boards of both Wi-Lan and FMA Wi-LAN expects to receive net proceeds of approximately US$2 million when the sale is completed, and FMA will acquire the resources currently working within Wi-LAN’s IP Division, Wi-LAN’s WiMAX PHY and MAC IP and related customer contracts, and a paid-up license to Wi-LAN’s OFDM patents for the purpose of developing and marketing WiMAX products. This agreement supersedes all prior development agreements between Wi-LAN and FMA, and contemplates licensing terms with regard to Wi-LAN’s WiMAX MAC patents, yet to be finalized. The parties are working to conclude the transaction by April 30, 2006.
“This sale is beneficial for our customers, our employees and our shareholders,” said Bill Dunbar, President and CEO, Wi-LAN Inc. “FMA will receive an outstanding group of very capable and experienced technical personnel, many of whom have a close working relationship with Fujitsu.”
Fujitsu is the largest customer of the IP Division and has been working closely on WiMAX technology since late 2002. Wi-LAN has combined its system expertise and technology with FMA’s chip design capabilities in a development program that created the new WiMAX 802.16-2004 System-on-a-Chip (SoC) from Fujitsu. The highly integrated, high-performance solution incorporates embedded processors and mixed signal technology in a device that enables systems developers to provide cost-effective WiMAX Forum Certified™ equipment.
FMA and Wi-LAN are founding and board members of the WiMAX Forum™ and active participants in the IEEE and ETSI standards bodies. Together, FMA and Wi-LAN have been leaders in generating industry-wide acceptance of the IEEE 802.16 and ETSI HiperMAN wireless MAN standards, which are the basis of successful WiMAX deployments.
About Wi-LAN Inc.
Wi-LAN is a global provider of broadband wireless communications solutions. Wi-LAN believes its portfolio of patents is necessary for the implementation of WiMAX Forum Certified devices and devices using the IEEE standards 802.11a and 802.11g (the 2nd generation Wi-Fi Alliance standards). Wi-LAN is a charter member of the WiMAX Forum (www.wimaxforum.org). Detailed information on Wi-LAN can be found at www.wi-lan.com