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EXHIBIT 20.1
PRESS RELEASE
INTERWAVE ACQUIRES ASSETS OF 3C LIMITED
FOR $6 MILLION
Expanded Research and Development Capabilities Support
Company's Community Network Markets
THURSDAY, JUNE 29, 2000
MENLO PARK, Calif., United States -- interWAVE
Communications International, Ltd. (Nasdaq: IWAV) today
announced that it has signed a definitive agreement to
purchase intellectual property and other assets of 3C
Limited, a Hong Kong-based telecommunications technology
developer with operations in Hong Kong and Shenzhen,
China.
In a transaction that will be accounted for as a
purchase and expected to close in July 2000, interWAVE
will pay $6 million in cash to 3C for the block of
assets. Specifically, interWAVE has agreed to purchase
assets including the designs for a high-reliability
tandem switch, a fiber-optic (OC3) access and switching
system, prepaid services software, call center system,
and a variety of protocol converters, ASICs, DSP-based
processing modules and protocol stacks and a wide range
of telecommunications technology that has an installed
base of more than 700,000 subscribers in China.
3C has been in business for 13 years and has two joint
ventures in China, which will continue to be operated
after this purchase. Twenty-one employees from the
engineering organization at 3C will become employees of
interWAVE as a result of this purchase.
The acquisition of 3C assets supports interWAVE's
strategy to develop and deploy wireless communications
networks in growing markets throughout Asia and
elsewhere. This acquisition expands interWAVE's ability
to more aggressively pursue the community applications
and provides development engineering resources dedicated
to support the evolutionary growth of the company's
products.
"The intellectual property embodied in the assets
acquired in this transaction represents a sizeable
investment on the part of 3C since their inception.
These product technologies and engineering expertise
provide us with a leap forward in delivering total
network solutions, allowing us to meet the explosive
opportunity in this market," said Dr. Priscilla M. Lu,
Chairman and Chief Executive Officer of interWAVE. "We
are very excited to have the engineering team of 3C join
our company and we expect the addition of the acquired
technologies and the engineering talent to add
incrementally to our overall revenue and operating
results immediately. We have had the opportunity to work
with this team on a number of projects already, and we
have been impressed with their technological depth in
the switching and networking areas, and their overall
understanding of the China market." According to James
Wang, Chief Executive Officer of 3C, "interWAVE has
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been a strategic partner of ours for five years, and we
are very excited to be joining the interWAVE family.
Combining our expertise will result a very competitive
solution for the wireless community market for China and
other parts of Asia."
Wang co-founded 3C in 1986 and was its chairman and
chief executive officer from 1996 to the present. After
the asset purchase is completed, Wang will leave 3C and
will join the interWAVE team as Executive Director, Asia
research and development.
The pending transaction has been approved by the
shareholders of 3C Limited and the board of directors of
interWAVE, and closing is pending conclusion of
regulatory requirements in Hong Kong.
About interWAVE Communications
interWAVE Communications International, Ltd. has
pioneered the only commercially available system that
provides all of the infrastructure equipment and
software necessary to support an entire wireless network
within a single compact system. interWAVE's WAVE-IP`
network system is the first to offer interoperability
between Global System for Mobile communications (GSM)
networks and networks based on the Internet protocol.
The company markets and sells its products globally
through strategic relationships with Alcatel and Nortel
Networks, as well as through other communications
equipment providers, systems integrators and a direct
sales force. interWAVE holds 16 patents, with 13 more
pending in the U.S. Patent Office. Since 1997, the
company has shipped more than 1,500 units, which are now
installed in GSM networks in 27 countries. The company
has nearly 200 employees worldwide with most operations
based in California's Silicon Valley and sales and
service offices in Hong Kong and Paris. interWAVE
actively participates and is affiliated with Third
Generation Partnership Program (3GPP), GSM Association,
European Telecommunications Standards Institute (ETSI)
and The Association for Telecommunications Professionals
in Higher Education (ACUTA). Additional information
about interWAVE Communications is available on the
company's website at http://www.iwv.com.
Editor's Note: interWAVE is a registered trademark and
WAVEXchange, WAVEXpress/BSC, WAVEXpress/BTS,
WAVEView/OMC, and WAVE-IP are trademarks of interWAVE
Communications International, Ltd.
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This news release contains forward-looking statements
that are subject to known and unknown risks and
uncertainties that could cause the results of interWAVE
Communications International, Ltd. to differ materially
from management's current expectations. These risks and
uncertainties include, but are not limited to, the risks
relating to interWAVE's history of losses, the
expectation of future losses, reliance on a small number
of customers, complexity of products, difficulties in
introducing new or enhanced products, compliance with
regulations and evolving industry standards, long sales
cycles, intense competition, management of global
operations, the ability to retain and motivate key
employees, and the Risk Factors discussed in the initial
public offering prospectus dated January 28, 2000, and
in the filings and reports made from time to time by
interWAVE with the Securities and Exchange Commission.
interWAVE assumes no obligation to update any
forward-looking statements, which speak only as of their
respective dates.
