PROX Proxim (MM)

Proxim Announces Settlement of Patent Lawsuit and Cross-Licensing Agreement with Symbol Technologies SUNNYVALE, Calif., Sept. 14 /PRNewswire-FirstCall/ -- Proxim Corporation (NASDAQ:PROX), a global leader in wireless networking equipment for Wi-Fi and broadband wireless networks, today announced it has reached a settlement and cross-licensing agreement with Symbol Technologies, Inc. (NYSE:SBL), resolving all outstanding litigation between the two wireless industry leaders. Under the terms of the agreement, Proxim has agreed to pay Symbol $22.75 million over the next 2 1/2 years, or 10 quarters, commencing in the current quarter ended September 30, 2004. These payments will be made in $2.5 million installments per quarter in each of the first eight quarters, $1.5 million for the ninth quarter, and $1.25 million for the tenth quarter. Proxim also has agreed to pay Symbol a two percent (2%) royalty on future sales of certain wireless LAN products. The two companies have cross-licensed certain patents and Proxim has assigned certain intellectual property to Symbol. Finally, Proxim and Symbol have entered into a mutual covenant not to sue with respect to patent infringement covering networking products through September 2009. As a result of this agreement, Proxim anticipates that it will record a one-time, non-cash gain of approximately $8.0 million during the quarter ended September 30, 2004. This gain is the difference between the net present value of the $22.75 million settlement, and the accrued liability related to this matter of $28.7 million which was recorded in the company's balance sheet as of July 2, 2004. "We are pleased to have this matter finally resolved and behind Proxim," said Frank Plastina, Chairman and Chief Executive Officer at Proxim. "The most important result of this agreement is that Proxim can now focus solely on taking full advantage of its unique market position in both the WiFi and emerging WiMAX markets. We also believe this agreement is an important step toward what we hope is joint opportunity and cooperation between Proxim and Symbol." About Proxim Proxim Corporation is a global leader in wireless networking equipment for Wi-Fi and broadband wireless networks. The company is providing its enterprise and service provider customers with wireless solutions for the mobile enterprise, security and surveillance, last mile access, voice and data backhaul, public hot spots, and metropolitan area networks. This press release and more information about Proxim can be found on the Web at http://www.proxim.com/. Safe Harbor This press release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from Proxim's expectations in these statements. These risks include the risk that Proxim will not have the ability to make the quarterly payments or ongoing royalty payments, the risk that the accounting treatment of the agreement will differ from that currently anticipated; the risk that Proxim's efforts to take advantage of its market position will not be successful; and the risk that Proxim and Symbol will not be able to successfully pursue joint opportunities or collaborate in the future. For additional information regarding risks relating to Proxim's business, see Proxim Corporation's Form 10-K for the year ended December 31, 2003 and Forms 10-Q for quarters ended April 2, 2004 and July 2, 2004, Current Reports on Form 8-K, and other relevant materials filed by Proxim with the SEC. Proxim assumes no obligation and does not intend to update these forward-looking statements. DATASOURCE: Proxim Corporation CONTACT: media, Ben Gibson, Vice President, Marketing, +1-408-542-5366, or , or Michael Angel, Chief Financial Officer, +1-408-542-5200, or , both of Proxim Corporation Web site: http://www.proxim.com/

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