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EION Wireless Acquires major broadband wireless product lines from Wi-LAN

Ultima 3, VIP and LIBRA MX product line sold to Ottawa-based wireless solution provider

CALGARY, Canada - March 22, 2006 - Wi-LAN Inc. (TSX:WIN) (Wi-LAN or "the Company") today announced it has entered into a binding agreement to sell three of the Company’s broadband wireless product lines - Ultima 3, VIP and LIBRA MX - to Ottawa-based EION Inc.(EION). This transaction further advances the Company’s decision, announced in February of this year, to exit the equipment business in an orderly manner. The Company is not selling any of its patents as a result of this transaction.

Under the terms of the agreement, EION buys the assets along with the current orders in-hand of the three product lines. EION also acquires the global installed base with a network of over 120 resellers. EION assumes the responsibility of the warranty obligations of the installed base. Patents owned by Wi-LAN relevant to the product line acquired by EION will be subject to a non-exclusive, non-transferable license from Wi-LAN. Under a separate agreement, EION is purchasing from Wi-LAN an additional existing inventory of finished goods, components and test equipment relating to the products. In addition to the cash consideration paid to Wi-LAN, EION has agreed to pay certain quarterly royalties based on a percentage of the manufacturers cost for each Ultima3 and VIP product sold by EION. Detailed financial terms of the transaction were not disclosed.

The transaction is scheduled to close on or before April 18, 2006.

"This transaction will complete our actions to exit three of the four product lines that Wi-LAN had developed in a manner that benefits our shareholders, customers and employees," said Bill Dunbar, President and CEO, Wi-LAN Inc. "At the same time, it limits our future warranty obligations for these products while enabling Wi-LAN to benefit from EION’s distribution capability and future sales under the royalty arrangement."

"Broadband wireless is emerging as a solution of choice for service providers, rural communities and digital home", says Dr. Kalai Kalaichelvan, Chairman and CEO of EION Inc. "Adding Wi-LAN’s product lines to our wireless division’s portfolio and combining the strength of the distribution channels brings an unmatched technological and business edge for EION’s customers worldwide. With growing market interest in WiMAX, this transaction further strengthens EION’s business innovation in partnerships and channels. This will accelerate the delivery of triple play over wireless solutions to the market. EION plans to strengthen the team in Calgary to grow the business and will ensure a seamless transition for Wi-LAN’s customers", adds Dr. Kalaichelvan.

 

 
 

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About EION Wireless
EION Wireless, a division of EION Inc., is a global provider of Broadband Wireless Access products that enable effective, economic and secure wireless high-speed communications solutions. EION is a Principal Member of the WiMAX Forum and was named one of the fastest fifty growing wireless companies in North America by Deloitte and Touche. With over ten thousand broadband wireless installations worldwide, the company’s licensed and unlicensed frequency products are used by wireless ISPs, private network operators, and remote rural networks and in voice and data backhaul applications to solve last mile challenges. EION Wireless works with more than 165 worldwide channel partners to support its diverse global customer base.
For more information, visit: www.eionwireless.com

About Wi-LAN
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.

For additional information, please contact:
EION Inc.
Richard Kelland
Marketing & Communications
Phone: (613) 271-4400 x232
e-mail: richard@eion.com

Wi-LAN Inc.
Amir Nayeri
Genoa Management
Phone: 1-866-430-6247
info@genoa.ca