Winncom Technologies Announces Closing of $48 Million of the Financing for JSC Kazakhtelecom Project

Business Wire, Jan 31, 2006

WHEAT RIDGE, Colo. -- ARC Wireless Solutions, Inc. (OTCBB:ARCS) today announced the closing of the Ex-Im Bank guaranteed portion of financing totaling approximately $48 million for the previously announced turnkey telecommunications project in Kazakhstan of its wholly owned subsidiary, Winncom Technologies Corp. JSC Kazakhtelecom has committed to the balance of the $55 million tender to either pay directly to Winncom or through a loan from the lenders.

Societe Generale is lending the money to Kazkommertsbank on behalf of the End User, JSC Kazakhtelecom. JSC Kazakhtelecom had approved the work program and timeline for part of the project, submitted by Winncom earlier, which was a prerequisite prior to the closing of the previously announced $2.3 million financing for Winncom to accelerate the installation of the fiber optic cable. Winncom completed the installation of the fiber optic cable in October 2005.

As part of the approved work program and prior to the closing of the financing, Winncom has recently sold to JSC Kazakhtelecom approximately $6 million of Lucent Technologies, Inc. (NYSE:LU) equipment and approximately $1 million of Cisco (NASDAQ:CSCO) equipment. The majority of the first phase of the turnkey fiber-optic communications network is expected to be completed by the end of the first quarter of this year; the commencement dates for the second and third phases have yet to be announced.

"We are pleased to report that the financing phase of this project is complete," stated Gregory E. Raskin, CEO and President of Winncom Technologies. "I know I speak for all of the employees of Winncom in saying that we are excited to meet the challenge of building out a turnkey telecommunications network and the opportunity to become one of the infrastructure leaders in the region," Mr. Raskin added.

About ARC Wireless Solutions, Inc.

ARC Wireless Solutions, Inc. is involved in selective design, manufacturing and marketing, as well as distributing and servicing, of a broad range of wireless components and network products and accessories. The Company develops, manufactures and markets proprietary products, including base station antennas (for cellphone towers) and other antennas, through its Wireless Communications Solutions Division; it is a value-added distributor of Wi-Fi(R) and other wireless networking products through its Winncom Technologies Corp. subsidiary; and it designs, manufactures and distributes cable assemblies for cable, satellite and other markets through its Starworks Wireless Inc. subsidiary. The Company's products and systems are marketed through the Company's internal sales force, OEMs, numerous reseller distribution channels, retail, and the Internet. ARC Wireless Solutions, Inc., together with its Wireless Communications Solutions Division and its Starworks Wireless subsidiary, is headquartered in Wheat Ridge, Colorado. The Company's Winncom Technologies Corp. subsidiary is located in Solon, Ohio. For more information about the Company and its products, please visit our web sites at www.arcwireless.net, www.antennas.com, www.winncom.com and www.starworkswireless.com.

About Societe Generale Group

Societe Generale is one of the largest financial services groups in the euro-zone. The Group employs 92,000 people worldwide in three key businesses: Retail Banking & Financial Services: Societe Generale serves about 18 million individual customers worldwide; Global Investment Management & Services: Societe Generale is one of the largest banks in the euro-zone in terms of assets under custody (EUR 1,275 billion, June 2005) and under management (EUR 353 billion, June 2005); Corporate & Investment Banking: SG CIB ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance. Societe Generale is included in the four major socially responsible investment indexes. www.socgen.com.

About Ex-Im Bank

Ex-Im Bank, the official export credit agency of the United States, is in its 71st year of helping finance the sale of U.S. exports, primarily to emerging markets throughout the world, by providing loan guarantees, export credit insurance and direct loans. In fiscal year 2004, Ex-Im Bank authorized financing to support $17.8 billion of U.S. exports worldwide. For more information, visit www.exim.gov.

This is not a solicitation to buy or sell securities and does not purport to be an analysis of the Company's financial position. This Release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in the forward-looking statements and assumptions upon which forward-looking statements are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. See the Company's most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-K and Form 8-K filed on May 12, 2005, for additional statements concerning important factors, as well as general demand for products, manufacturing costs, customer approvals and competition, that could cause actual results to differ materially from the Company's expectations.