STM Wireless Selected by INTELSAT to Perform Satellite Telephony and Wireless Local Loop Study Contract

Business Wire, Oct 16, 1997

IRVINE, Calif.--(BUSINESS EDITORS)--Oct. 16, 1997--STM Wireless, Inc. (NASDAQ/NMS:STMI), announced today that it has been awarded a study contract, by INTELSAT, to develop a cost-effective solution for rural telephony, using a combination of satellite backbone and wireless local loop technologies.

The study contract is the first phase of an effort by INTELSAT to introduce viable technologies to its member countries. The study will concentrate on the development of a combined wireless transmission and satellite solution that will allow developing countries to provide telephone access to remote areas in an economical fashion.

The result of the study contract will be the evaluation of technical solutions and design concepts, which may lead to a development contract and field trials.

STM has developed and installed solutions for basic telephony applications in Latin America and Asia, including integrated solutions combining satellite and cellular systems. STM's success in these markets has given it the necessary expertise and understanding of how to further develop and apply modern technology to meet telephony needs.

Commenting on the award, David Bredendick, STM's Sales Manager, said, "In many regions of the world, basic telephony service is simply unavailable. We hope this relationship between INTELSAT and STM will contribute to the development of products that can dramatically increase the penetration of telephone services in these remote regions."

Combining satellite technology with wireless loop technology is an excellent way of providing an economical solution for applications that involve subscriber densities far below those addressed by classical high density wireless local loop solutions.

These low density applications are currently served by multi-access radio products that combine backbone transmission, using TDMA microwave radios, together with point to multi-point local radios.

Frequency availability, line of sight transmission requirements and installations involving multiple relay stations make these solutions less attractive than those combining a single hop satellite drop with an inexpensive base station to cover a population of several hundred subscribers.

The INTELSAT cooperative owns and operates the world's most extensive global communications satellite system. With 1996 revenues of over US $910 million, the INTELSAT system provides voice/data and video services to countries around the globe.

STM Wireless, Inc., headquartered in Irvine, Calif., is an international provider of wireless communications solutions including VSATs (Very Small Aperture Terminals) for voice, data and video applications with equipment installed in over 80 countries. In addition to its supply of satellite network systems, the company has two subsidiaries involved in related businesses.

Direc-to-Phone International (DTPI) is a service subsidiary which uses products manufactured by STM to enter into operating agreements with local partners to provide turnkey communications services, generating long-term revenues.

Telecom Multimedia Systems, Inc. (TMSI) is a technology subsidiary focused on Internet telephony developing products and digital signal processing solutions which provide low delay, high quality voice over IP solutions. -0-

With the exception of the actual reported financial results, the statements made in this news release are forward looking statements that involve risks and uncertainties.

As discussed in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 1996, and its Form 10-Q for the first two quarters of fiscal 1997, the Company's future operating results are uncertain and may be impacted by the following factors, among others: the long-term cycle involved in completing major contracts, particularly in foreign markets; increasing competitive pressures; general economic conditions; technological advances; the timing of new product introductions; political and economic risks involved in foreign markets and foreign currencies; and the timing of operating and other expenditures.

CONTACT: STM Wireless, Inc.

Frank Connors, 714/753-7864 (Corporate Communications)

Paul Kinderman, 714/789-2625 (Marketing Communications)

or

Lippert/Heilshorn & Associates (Investor Relations)

Keith Lippert, 212/838-3777

Kris Otridge, 415/433-3777