Telular Corporation Signs Supply Agreement with Lucent Technologies to Offer Fixed Wireless Solution for Cellular and PCS Carriers - Company Business and Marketing

Cambridge Telcom Report, Feb 28, 2000

Telular Corporation (Nasdaq: WRLS) announced Friday that it has signed a supply agreement with Murray Hill, N.J.-based Lucent Technologies under which Lucent will purchase and market Telular's Fixed Wireless Network Interface products to cellular and PCS operators in the North American market.

The multi-year agreement covers the supply of Fixed Wireless Network Interface Devices based on Telular's successful Phonecell SX4 series product line, to be marketed by Lucent to U.S. cellular and personal communications services (PCS) network operators whose networks are based on the IS-136 TDMA wireless standard.

Phonecell Fixed Wireless products incorporate Telular's patented RJ-11 interface technology, which enables standard telephony, Internet, fax, and data devices to communicate over standard wireless networks. Telular products offer these services in Wireless Local Loop and Fixed Wireless applications in more than 130 countries.

"This is a major step forward for our company and for the development of the North American fixed wireless market," said Mr. Ken Millard, President and CEO of Telular Corporation. "The results of recent U.S. trials indicated very strong consumer acceptance for Telular's fixed wireless technology. In many cases consumers reported voice quality performance that exceeded their current wired service. Now in powerful combination with the infrastructure and marketing expertise of a leading wireless technology supplier -- Lucent Technologies -- a very competitive portfolio of products and expertise can be focused on developing market opportunities with wireless operators. Along with an increasingly favorable regulatory environment, the final pieces have been assembled to enable North American wireless operators to address exciting market opportunities for primary voice access and second line services with a proven Fixed Wireless solution."

"The inclusion of Telular's industry-leading solution enables us to provide our FoneLink(SM) turnkey wireless local loop offer to our network operator customers," said Mr. Robert Parsloe, Assistant Vice President -- Emerging Wireless Service Providers -- North America for Lucent Technologies. "Competition in the local loop is intensifying, and wireless operators now have a ground floor opportunity to grow their business from their existing mobile network assets. Several Lucent wireless service provider customers currently have trials underway with the technology and are preparing to enter markets across North America."

While wireless local loop systems are still a rarity in North America, market analysts have projected aggressive worldwide growth in wireless local loop (WLL) subscribers with estimates of fifty million subscribers or higher by 2005. This projected rapid growth is fueled by expectations for decreasing service delivery costs, high quality of service, and lack of competition in many rural areas. Some forecasts show the pace of growth to accelerate with the deployment of next-generation (3G) systems offering increased voice capacity and high-speed data services.

Among its many industry firsts, Telular Corporation was the first terminal supplier to deploy an IS-136 TDMA Fixed Wireless Terminal. Telular Corporation is a leader in the design and manufacture of Fixed Wireless Terminals. Telular's proprietary telecommunications interface technology enables standard phone systems, fax, computer modem or monitored alarm systems to utilize available cellular wireless service for either primary or back-up communications. Their product lines incorporate the world's leading cellular standards (GSM, TDMA, CDMA, and AMPS) and are marketed worldwide. Products developed and marketed by Telular include the Phonecell and Telguard lines. Headquartered in Vernon Hills, Illinois, Telular has regional sales offices in Atlanta, Miami, Singapore and the United Kingdom. For further company information, visit Telular at http://www.telular.com.