Apaptive Broadbandtm Issues 1.2 Million Shares in Note Conversions; Over Half of the 1993 $57 Million Convertible Debt Converted to 1.2 Million Shares

Business Wire, Oct 19, 1999

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 19, 1999--

ADAPTIVE BROADBAND CORPORATION (Nasdaq National Market:ADAP) has received a number of conversions of its 5-1/4% convertible subordinated notes into common stock.

Of the $57.5 million total face value of the notes, approximately $33 million has been converted into approximately 1.2 million shares of new stock.

"Adaptive Broadband's shares have appreciated in value in recent weeks, sustaining a share price exceeding the conversion price of $28.4375, which was set in the convertible debt offering of 1993. Consequently, some of our note holders have converted their notes into equity of the company. These conversions change the capitalization of the company by adding 1.2 million shares to our total shares outstanding and reduce our long-term debt by $33 million. We are providing this progress report in response to inquiries from our investors regarding the status of the notes," commented Donna S. Birks, Adaptive Broadband's executive vice president and chief financial officer.

Adaptive Broadband (http://www.adaptivebroadband.com) is a data networking solutions company -a leading provider of terrestrial wireless and satellite-based systems to support ultra-high speed Internet access, broadcast digital TV transport and worldwide Internet backbones. The company also provides industry-leading solutions for satellite-based data communications and terrestrial wireless telemetry networks.