CSI Wireless Files Answer and Counter Claims to Audiovox Complaint

CSI Wireless Inc. has responded to an Audiovox Communications Corp. lawsuit filed against CSI last month by filing a more than US$20-million lawsuit of its own against Audiovox. The suits stem from the FWT300 -- an innovative fixed wireless telephone developed by CSI Wireless.

CALGARY, Aug. 2 - (TSX:CSY): CSI Wireless Inc. ("CSI Wireless"), a leader in GPS and wireless technology products for automotive, consumer and commercial applications, announced today that on July 30, 2002 it filed an Answer and Counter-Claims to the Statement of Complaint filed by Audiovox Communications Corp. ("Audiovox"), as announced by CSI Wireless in its July 3, 2002 news release.

In its Answer and Counter-Claims, CSI Wireless unequivocally denies each of the claims for damages made by Audiovox. In addition, CSI Wireless has advanced counter-claims against Audiovox, including claims for breach of contract, breach of duty of good faith and fair dealing.

CSI Wireless is seeking judgment against Audiovox:

(i) dismissing Audiovox's complaint in its entirety;
(ii) for a minimum of US$10 million in compensatory damages, with the final amount to be determined at trial;
(iii) for punitive damages in an amount to be determined at trial;
(iv) awarding CSI Wireless its cost and expenses, including reasonable legal fees incurred in the litigation; and
(v) granting such other and further relief as the court finds appropriate.

The Company believes that punitive damages of no less than US$10 million are appropriate.

As stated in its July 3, 2002 news release, CSI Wireless believes the claims made against it to be without merit and will aggressively defend the action, protect all of its intellectual property rights and seek redress for any damages it has incurred.

About CSI Wireless

With offices in Calgary, Silicon Valley, and Phoenix, CSI Wireless designs and manufactures innovative, cost-effective, wireless and GPS products for mobile and fixed applications in the agriculture, marine, automotive and other markets. Through the integration of GPS and wireless, CSI has begun serving several emerging high-growth markets including Fleet Management, Asset Tracking, Telematics and Mobile Computing applications. The Company owns several patents and intellectual property relating to wireless and GPS technologies. CSI Wireless has licensed its cellular technology to GPS, cellular handset, and chipset manufacturers. The company's common shares trade on The Toronto Stock Exchange under the trading symbol "CSY", with approximately 19.1 million outstanding. For online information about CSI Wireless, go to www.csi-wireless.com

For further information:

- Stephen Verhoeff, President & CEO, CSI Wireless Inc., (403) 259-3311, sverhoeff@csi-wireless.com
- Cory Pala, Investor Relations, E-vestor Communications Inc., (416) 657-2400, cpala@e-vestorcom.com
- Jeff Adams, Public Relations Manager, CSI Wireless Inc., (403) 259-3311/615-8747 (cell), jadams@csi-wireless.com