5G Wireless Plans Diversification Into Network Services

Market Wire, September, 2006

5G Wireless Communications Inc. (OTCBB: FGWI), a leader in the wireless broadband industry, today announced it has signed a letter of intent (LOI) to assume the assets of wireless service provider IVADO, a registered trademark brand of Global Connect Inc. The planned acquisition establishes the IVADO services division of 5G as the company continues its expansion into the travel and hospitality market.

The LOI signals the anticipated entrance and diversification of 5G into the wireless service provider market while strategically positioning the company to fully leverage both the regrowth of the travel/hospitality business, and the needs of their customers. According to a survey conducted by the Wi-Fi Alliance in late 2005, seventy percent of current and prospective Wi-Fi users report they are more likely to take their notebook computers when traveling on vacation thanks to the widespread availability of wireless networking hotspots in airports, hotels, parks, and restaurants. Wi-Fi provides a virtual office for customers with constant connectivity, allowing for easy, unfettered access.

"Having a prior relationship with 5G and a clear understanding of the value and savings their equipment brings to our business model, the consolidation came naturally," says Joshua Henschell, President of IVADO. "With 5G's solid operating and management team, I feel confident that going forward, the business can only expand and flourish."

"After receiving a firm commitment from IVADO to be their exclusive supplier, we began examining the overall wireless service provider market for the hospitality industry," says Jerry Dix, CEO of 5G Wireless. "We saw the cost of equipment as the prohibitive growth factor, and recognized our strength and value proposition, lowest Total Cost of Ownership (TCO), would result in a clear match where our equipment fits that need. Rather than simply provide the wireless hardware and equipment for hotel and timeshare deployments, participating in the ongoing revenue stream of this dynamic business model makes more sense. We see the timing is right for equipment and services to unite as a single offering. By removing the burden of the upfront equipment costs, expansion and growth can be accommodated quicker, with the breakeven point realized that much sooner. Similar business models may be offered to selected WISPs as well."

Since the contracts IVADO holds are for a minimum of five years, there is a tremendous opportunity to establish a market leading position and create a substantial revenue stream. This recurring revenue base combined with existing 5G revenue from equipment sales to universities and international customers should make a substantial positive impact, bringing enhanced value to shareholders.

The execution of the final agreement is anticipated to take place by end of Q3 2006 pending the final stages of due diligence. Payment in connection with the proposed transaction will be stock only.

About 5G Wireless Communications Inc.

5G Wireless Communications Inc. is a wireless systems infrastructure company with technology and network architecture based on standard IEEE 802.11b/g Wi-Fi equipment. The 5G Wi-Fi system functions through macro-cell base stations deployed in key areas, while dead spots are filled in with smaller micro cells following the proven deployment strategy used today by cellular carriers. This type of structural design allows for a well-tailored combination of cells resulting in the ability to add higher capacity where and when needed. 5G Wireless Base Stations have the advantage of multiple usage and varying functionalities for both the private and public sectors, including governance and administration for government departments, security and intelligence purposes, and educational uses, as well as for the management of data by businesses and companies. 5G Wireless' value proposition -- significantly increased performance at the lowest possible Total Cost of Ownership (TCO) -- is quickly becoming a key consideration in the strategic deployment of the wireless experience. The company is located in Marina del Rey, CA. For additional information call 800.916.1611 or visit ww.5gwireless.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Form 10-K filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. All product or service names mentioned herein are the trademarks of their respective owners.