STM Wireless Announces Award by INTELSAT of Development Contract for Wireless Local Loop/VSAT Product; Focused on Rural Communications

Business Wire, July 16, 1998

IRVINE, Calif.--(BUSINESS WIRE)--July 16, 1998--STM Wireless Inc. (STM)(NASDAQ NM:STMI) today announced that it has been awarded a contract by INTELSAT to develop an integrated Wireless Local Loop (WLL)/VSAT prototype.

This product is intended to play a key role in INTELSAT's development support of satellite-based remote telephony services worldwide. This contract is a follow-on to the INTELSAT study contract awarded previously to STM and announced in October 1997.

Commenting on the contract, Fabrice Langreney, INTELSAT's project manager of Wireless Local Loop Technology, stated, "As the majority of the three billion people who have yet to use a telephone reside in rural and remote areas, satellites and wireless local loop provide the ideal medium to rapidly and cost-effectively link these areas to the rest of the world. And, INTELSAT, with its true global connectivity, is uniquely positioned to make this happen economically."

Emil Youssefzadeh, chief executive officer of STM Wireless Inc., said, "This contract award is a tribute to STM's dedication to and leadership in rural telephony. We are delighted to be working so closely with such an important body as INTELSAT and to be part of their vision for the implementation of truly affordable worldwide telephony."

The integrated WLL/VSAT prototype will feature STM's DAMA 10000 (Demand Assigned Multiple Access) VSAT architecture and a WLL/DECT (Digital European Cordless Technology) distribution network. The product consists of a low cost, closely integrated base station combining both technologies. This will supply a much more attractive and less expensive solution for low and medium population densities than current offerings.

The area of coverage of the base station will be approximately 5 Km radius and the aim is to make the service cost effective with as few as 20 subscribers. STM is working closely with INTELSAT on the field trials and introduction of this new technology. The first set of trials is scheduled to take place later this summer in Africa and will be followed by additional trials in other areas of the world.

Tom Eaton, INTELSAT's director of sales and marketing, further commented, "As part of its core mission to provide universal service, INTELSAT is committed to assisting its customers in implementing economical solutions for remote and rural communications. We believe that this combination of WLL and VSAT will enable the INTELSAT system, with its constellation of geostationary satellites, to continue providing extremely cost-effective basic telephony service to remote areas."

INTELSAT owns and operates a global communications satellite system. With 1997 revenues of more than US$960 million, the INTELSAT system provides voice/data and video service to over 200 countries and territories via satellite.

STM Wireless Inc., headquartered in Irvine (Web Site: www.stmi.com), is an international provider of communications solutions for rural telephony applications with equipment installed in over 90 countries.

The company operates as two independent, but complementary businesses: STM Network Systems (STM-NS) supplies satellite network systems worldwide and Direc-to-Phone International Inc. (DTPI), a majority-owned subsidiary, is a leading provider of fixed station telephony services implemented in lower population density geographies. DTPI uses products manufactured by STM-NS to enter into long-term agreements with local partners to provide turnkey communications services.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, STM Wireless, Inc. or its representatives have made or may make forward-looking statements, orally or in writing. The words "estimate", "project", "potential", "intended", "expect", "believe" and similar expressions or words are intended to identify forward-looking statements. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. As discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 1997, and its Form 10-Q for the first quarter of fiscal 1998, 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.