Intel to invest in Unwired's secure convertible notes

Telecomworldwire, August 29, 2005

TELECOMWORLDWIRE-29 August 2005-Intel to invest in Unwired's secure convertible notes(C)1994-2005 M2 COMMUNICATIONS LTD http://www.m2.com

Intel Capital, the venture investment programme for Intel Corporation, is to invest in secured convertible notes issued by wireless broadband carrier, Unwired Australia, with a face value of AUD37m (USD27.9m).

The investment is part of an attempt by the two companies to advance Worldwide Interoperability for Microwave Access (WiMAX) networks deployment. Unwired is to use the proceeds mainly for expansion of its services across other major cities in Australia and a joint promotion of mobile wireless broadband capabilities using WiMAX networks has been agreed.

Unwired is intending to adopt Intel products released in the future that support the forthcoming IEEE 802.16e standard for WiMAX solutions, expected to provide increased broadband Internet access mobility. Unwired is initially to deploy technology from Navini Networks for its WiMAX networks and dual-mode customer modems and base stations are to be made available in the first half of next year.

A meeting of Unwired's shareholders is to be held in October in order to gain approval for the investment. The convertible notes would be issued in 45 days, subject to shareholder approval, completion of standard conditions and the satisfaction of regulatory requirements, to mature in August 2009.

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