Proxim's Wireless Backhaul Eliminates Leased Line Costs for the City of Bee Cave, Texas

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City Saves Over $7,800 Per Year by Connecting All Municipal Buildings with Wireless Backhaul

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Proxim exceeded our expectations by providing over 400x the bandwidth of our previous wired system - and all for a fraction of the cost.

Proxim Wireless Corporation (NASDAQ: PRXM), a leading provider of end-to-end broadband wireless systems that deliver the quadruple play, today announced that the City of Bee Cave, Texas has connected the city's municipal buildings with Proxim's point-to-point wireless backhaul technology. Using Proxim's GigaLink® radios, the city not only increased the overall system bandwidth by 400x from 3 Mbps to 1.25 Gbps, but it also saved over $7,800 per year in leased line costs.

"When we first made the decision to evaluate wireless backhaul technologies for connecting our municipal buildings, our primary concern was the ability to increase our bandwidth to enable future services," said Richard Reynolds, CTO for the City of Bee Cave. "Proxim exceeded our expectations by providing over 400x the bandwidth of our previous wired system - and all for a fraction of the cost."

With the large increase in bandwidth that the Proxim system provides, the city designed and implemented a Voice-Over-IP (VoIP) system for all municipal buildings. The City of Bee Cave was the first organization, public or private, to successfully integrate an open source VoIP solution with Microsoft Exchange 2007 and Unified Messaging in the Austin Metropolitan area. Utilizing open source solutions helped Bee Cave reduce costs in hardware, software, and licensing while expanding available services. Not only does the VoIP system reduce costs, but the system's services were extended to field personnel via hand-held mobile devices, allowing employees to respond to citizen requests from anywhere, providing better service for citizens.

In addition, the system still has plenty of capacity to enable Bee Cave to offer additional services over time. The city is currently considering the future expansion of the network to offer outdoor Wi-Fi® connectivity to both the city's 50 acre park as well as "The Backyard," the city's popular outdoor music venue which attracts many musicians from the thriving music scene of nearby Austin, Texas.

"With our end-to-end wireless portfolio, we can provide everything from wireless backhaul to WiMAX and point-to-multipoint solutions, as well as Wi-Fi/WLAN and wireless network management," said Robb Henshaw, Director of Marketing for Proxim Wireless. "So as customers expand their networks to offer new services, we can provide the wireless components every step of the way."

The City of Bee Cave worked with CDW Government, Inc. (CDW-G), a leading provider of technology solutions for federal, state and local government agencies, to identify the best wireless solution for their needs and assist in the integration and deployment.

"The City of Bee Cave is a leader by example - showing how cities, regardless of size, can deploy technology to improve citizen service - and achieve a greater bang for their taxpayer dollars," said Jim Grass, CDW-G vice president of state and local government sales. "Working with CDW-G, the city was able to identify and implement the right solution for its needs. Not only does the state-of-the-art Proxim Wireless solution support and connect this growing city, but more importantly, it also will allow the city to realize a significant and tangible ROI for years to come."

About Proxim Wireless
Proxim Wireless Corporation (NASDAQ: PRXM) is a leading provider of end-to-end broadband wireless systems that deliver the quadruple play of voice, video, data and mobility to all organizations today. Our systems enable a variety of wireless applications including security and surveillance, VoIP, last mile access, enterprise LAN connectivity and Point-to-Point backhaul. We have shipped more than 1.8 million wireless devices to more than 235,000 customers in over 65 countries worldwide. Proxim is ISO-9001 certified. Information about Proxim can be found at http://www.proxim.com. For investor relations information, e-mail ir@proxim.com or call +1 413-584-1425.

Safe Harbor Statement
Statements in this press release that are not statements of historical facts are forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from the results anticipated in these forward-looking statements. The forward-looking statements involve risks and uncertainties that could contribute to such differences including difficulties in overcoming the network installation and operational challenges relating to any specific customer or geographical area; factors beyond our control such as weather, geographic, governmental, and interference issues; specific requirements of a given customer in their specific situations; uncertainties as to the extent of any specific equipment deployments or network expansions or any specific types of connectivity or services available in any specific geographic region; delays or changes in or cancellation of contemplated product deployments; and difficulties or delays in supplying products with the features, performance, compliances, certifications, cost, price, and other characteristics desired by customers. Further information on these and other factors that could affect our actual results is and will be included in filings made by Proxim Wireless from time to time with the Securities and Exchange Commission and in our other public statements.

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