NextWave Wireless Announces Second Quarter 2007 Financial Results

Business Wire, August 15, 2007

SAN DIEGO, Calif. -- NextWave Wireless Inc. (NASDAQ: WAVE) a global provider of mobile broadband and wireless multimedia products and technologies to enable Wireless 2.0, the next generation of mobile communications, filed its Quarterly Report on Form 10-Q for the second fiscal quarter of 2007 with the Securities and Exchange Commission and today announced financial results for the second quarter, which ended June 30, 2007. Financial schedules are included with this release.

Revenues were $12.8 million for the second quarter of 2007, a $6.5 million increase over the second quarter in 2006 and a $5.1 million increase over the first quarter in 2007. These quarterly increases are primarily related to revenue derived from IPWireless, Inc. that was acquired by NextWave Wireless in the second quarter of 2007.

Loss from operations was $(59.5) million for the second quarter of 2007, representing an increase of $33.5 million, when compared to the loss from operations for the first quarter of 2006 and an increase of $18.4 million over the first quarter of 2007. Loss from operations, sequentially and year-over-year increased primarily due to an increase in operating expenses related to the expansion of our research and development teams and related support organizations, through organic growth and acquisitions. At present, 895 full time employees and 276 contractor personnel are engaged in developing and marketing our mobile broadband and wireless multimedia products and technologies.

Net interest expense for the second quarter of 2007 was $6.0 million, an $8.8 million increase over the second quarter of 2006 and a $3.1 million decrease from the first quarter of 2007. The increase in interest expense was primarily driven by interest expense related to the issuance of $350 million of 7% Senior Secured Notes in July 2006.

Net loss available to common shares for the second quarter of 2007 was $(72.1) million, or $(0.81) per share, compared to a net loss available to common shares of $(22.7) million, or $(0.28) per share for the second quarter of 2006 and a net loss available to common shares of $(49.6) million, or $(0.59) per share, for the first quarter of 2007.

During the second quarter of 2007, NextWave Wireless completed its acquisition of IPWireless, Inc., a privately-held company headquartered in San Bruno, California, with research and development facilities in the United Kingdom. IPWireless is a global supplier of TD-CDMA network equipment and subscriber terminals and has been a leading force in the development of 3GPP TDD UMTS standards which serves as the foundation for its next-generation TDtv(TM) mobile TV technology and its wireless broadband public-safety network solutions. IPWireless' TD-CDMA mobile broadband technology was recently selected by New York City as part of the deployment of a citywide, public-safety wireless network. In the second quarter of 2007, to meet increased customer demand for its User Equipment (UE), IPWireless transferred its UE manufacturing to a high-volume production facility in China and in June 2007 began shipping its V5 commercial base station which supports the latest generation of TD-CDMA and can be upgraded to support mobile WiMAX or 3GPP LTE technologies.

In June 2007, NextWave Broadband announced the roadmap for its family of WiMAX baseband and multi-band RFIC chipsets designed to provide wireless device and network equipment manufacturers with an advanced platform to develop next-generation WiMAX mobile terminal and infrastructure products. Samples of the company's first-generation WiMAX baseband system-on-a-chip (SOC) and matched multi-band RFIC are currently available for reference design development activities by device manufacturers. Initial availability of the company's second-generation chips, designed for high-volume commercial production, is planned for the first half of 2008.

To further augment its global spectrum portfolio, on June 18, 2007, NextWave, through its Inquam Broadband GmbH subsidiary, acquired a 65% controlling interest in Zurich based WiMAX Telecom AG which has wireless broadband spectrum concessions in Austria, Slovakia, and Croatia.

"The acquisition of IPWireless and WiMAX Telecom, and the successful fabrication of our first-generation WiMAX chipset, which is one of the first paired multi-band chipsets to enable global roaming for WiMAX users, were some of the important milestones achieved during the second quarter of 2007," said Allen Salmasi, chairman and chief executive officer of NextWave Wireless Inc. "Our team remains focused on accelerating revenue growth, on developing the advanced, end-to-end wireless technologies and solutions our customers require, and on further strengthening NextWave's position in the global wireless marketplace."

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About NextWave Wireless

NextWave Wireless Inc. (NASDAQ: WAVE) develops next-generation wireless broadband products and technologies for mobile device and network equipment manufacturers and for wireless service operators. Through its NextWave Broadband subsidiary, the Company is developing a family of semiconductor and network component products based on WiMAX and Wi-Fi technologies. Its PacketVideo subsidiary provides device-embedded multimedia software for mobile phones and converged devices to many of the largest wireless carriers and handset manufacturers in the world. Its GO Networks subsidiary offers commercial and municipal service providers around the globe with carrier-class, mobile Wi-Fi systems optimized for wide-area deployment. Its IPWireless subsidiary is a global provider of TD-CDMA based mobile broadband and mobile broadcast products and technologies. NextWave has obtained a licensed spectrum footprint in the U.S. that covers over 248 million people and mobile broadband spectrum in numerous international markets including Germany, Switzerland, Japan and Austria. The Company intends to make its spectrum available to service providers looking to deploy next-generation wireless broadband networks that utilize NextWave's advanced wireless broadband products and technologies. Visit NextWave Wireless at www.nextwave.com.