Wi-LAN Acquires 802.16 Patent Portfolio: Acquisition Advances Wi-LAN's Strategies for First-to-Market WiMAX Certified Systems and Technology Licensing

Business Wire, May 25, 2004

Business Editors/High-Tech Writers

CALGARY, Alberta--(BUSINESS WIRE)--May 25, 2004

Wi-LAN Inc. (TSX:WIN), a global provider of broadband wireless communications products and technologies, today announced an agreement to acquire 17 U.S. patents and patent applications, including their foreign counterparts. This acquisition advances Wi-LAN's goal to produce the world's first WiMAX Certified(1) broadband wireless systems and strengthens Wi-LAN's technology licensing strategy with regard to such systems.

"We have been negotiating this strategic acquisition for some time and it is a real coup for Wi-LAN," said Dr. Sayed-Amr El-Hamamsy, President and Chief Executive Officer, Wi-LAN Inc. "This patent portfolio is strategically important for any company looking to implement the Media Access Control layer of a Wi-MAX Certified system. It strengthens Wi-LAN's defensive and offensive licensing capabilities. We have preemptively taken away our competitors' ability to own and enforce these patents while strengthening Wi-LAN's patent position. This purchase also broadens our patent portfolio and intellectual property rights in global markets."

Under the terms of the agreement, Wi-LAN will pay approximately $5.4 million (US$3.9 million) in cash and approximately $4.9 million (US$3.6 million) in special warrants exercisable into Wi-LAN common shares. The seller of the patent portfolio will license it back and Wi-LAN will pay the seller a range of 5% to 15%, depending on quantities, timing and other factors, of any royalty revenue that it receives from the purchased patents. Upon closing of the acquisition on May 21, the patents became part of Wi-LAN's patent portfolio and ongoing licensing strategy. The identity of the seller has been kept confidential under the terms of the patent purchase agreement.

About Wi-LAN Inc.

Wi-LAN is a global provider of broadband wireless communications products and technologies, offering businesses, including telecom service providers, and government enterprises effective, economic and secure wireless high-speed communications solutions. Wi-LAN specializes in high-speed Internet access, data network extension, and wireless data and telephony backhaul, utilizing its high quality products and industry-leading technologies. Wi-LAN believes its W-OFDM patents are necessary for the implementation of devices using the IEEE 802.16 WirelessMAN Standard(1) and the ETSI BRAN HiperMAN(1) Standard (the WiMAX Forum(1) standards), the IEEE standards 802.11a and 802.11g (the 2nd generation WiFi Alliance(1) standards), and the ETSI BRAN HiperLAN/2(1) Standard. Wi-LAN licenses its W-OFDM technology and has executed non-exclusive W-OFDM license agreements with semiconductor companies. Wi-LAN is the Chair Company of the OFDM Forum (www.ofdm-forum.com) and an active member of the WiMAX Forum (www.wimaxforum.org). Wi-LAN's common shares trade on The Toronto Stock Exchange under the symbol "WIN." Detailed information on Wi-LAN can be found at www.wi-lan.com.

Forward Looking Information

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless communications industry. These risks and uncertainties include, but are not restricted to, continued increased demand for the Company's products, the Company's ability to maintain its technological leadership in the field of high-speed wireless communications, the Company's ability to attract and retain key employees, the enforceability of the Company's patents, and the availability of key components.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

(1) All trademarks and brands mentioned in this release are the property of their respective owners.