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Multi-Gigabit-Per-Second
Wireless Fiber |
GigaBeam Announces New Business
Strategy With Focus on Specific Markets, WiFiber Applications And
GigaBeam's Technology
Other Topics: WiMAX Carrier-Class
Mesh Networking,
Multi-Gigabit-Per-Second Wireless Fiber,
Certified WiMAX Broadband Equipment,
WiMAX Consumer Equipment
GigaBeam Corporation
January 17, 2007
Operations Consolidated, Staff Streamlined to Focus on Domestic and
International Opportunities, Including MENA Opportunities
The New Strategy and Focus are Expected to Positively Impact the
Company’s Operating Results
Herndon, VA -- GigaBeam Corporation (NASDAQ: GGBM) announces adoption of
a new business strategy to realize the near-term potential of the global
market for its multi-Gigabit-per-second WiFiber® wireless fiber
technology. This strategy encompasses utilizing WiFiber to be deployed
as a cost-effective alternative infrastructure to support other
communications technologies, including wireless solutions such as WiMax
and Wi-Fi. The Company’s sales and service are now more focused on these
infrastructure opportunities which the Company is pursuing based upon
achievements to date with deployments of its product and the demand that
the Company believes is apparent in the domestic and international
market it serves. In the international market, the Company expects to
take advantage of opportunities in those countries where it has achieved
market penetration and where it has successfully pioneered rule making
in the 70 and 80 GHz spectrum for commercial use. These opportunities
include the Middle East and North African (MENA) and European Community
markets. |
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In order to implement
this new strategy, the Company has consolidated operations, research and
development and customer service activities at its Research Triangle
Park location in North Carolina. GigaBeam’s primary manufacturing
facility remains in Sunnyvale, California, while its corporate
headquarters is to be transitioned to North Carolina. The Company has
realigned its staffing to effectively execute this new strategy.
Lou Slaughter, Chairman and CEO of GigaBeam, stated “We have identified
substantial market opportunities for our WiFiber product based upon the
successful deployments to date, customer applications of our product and
the response from the marketplace. This positive feedback is driving our
new ‘go-to-market’ strategy. This new strategy allows us to take
advantage of the significant potential of our technology to support the
build out of wireless telecommunications infrastructures on a global
scale. The consolidation and refocus of our operating activities enables
us to more cost-effectively support our customers and the implementation
of this strategy.”
He added, “These changes have enabled us to substantially reduce the
level of cash used for recurring operating expenses of the Company. We
expect this new strategy to benefit the Company financially and
positively impact the Company’s operating results.”
Lou Slaughter continued, “Among our current domestic efforts in the
United States is a project located in a western city where our customer,
a communications service provider, is installing a city-wide WiFiber
infrastructure at significant lower cost than using terrestrial fiber to
provide an equivalent infrastructure. The customer has already purchased
and successfully deployed 11 links from the Company and is expected to
acquire additional links in the near future to build out their
infrastructure. In the MENA region we see similar opportunities to build
out city-wide infrastructures by both enterprises and government
entities. The Company will also continue to sell to enterprise and
government customers which can effectively utilize the Company’s
technology for various high bandwidth applications, in addition to
city-wide infrastructure build outs. These aforementioned opportunities
support our new strategy.”
GigaBeam WiFiber products operate in the 71-76 GHz and 81-86 GHz upper
millimeter wave spectrum bands. This portion of the spectrum has been
authorized by the Federal Communications Commission and the European
Conference of Postal and Telecommunications Administrations (CEPT) for
wireless licensed wireless commercial use. Use of these frequency bands
for commercial use was pioneered by GigaBeam’s founders.
GigaBeam’s technology, utilizing these large blocks of contiguous
spectrum, enables multi-Gigabit-per-second communications through use of
Gigabit Ethernet and other standard protocols. The current speed
achieved by GigaBeam’s WiFiber G-1.25 product series is full duplex at
one Gigabit-per-second (equivalent to 647 T1 lines or 1,000 DSL
connections) which supports GigE protocol. GigaBeam previously announced
its WiFiber G-2.7 series, to be released in the first half of 2007, and
which will operate at 2.7 Gbps. The protocols to be supported by the
G-2.7 product series include 2 x GigE (2 x 1 Gbps); OC-48 / STM-16
(2.488 Gbps); SMPTE 292M (1.485 Gbps) and both 1 and 2 Gbps fiber
channel. GigaBeam also plans deployment of future products capable of 10
Gigabits-per-second utilizing either the 10 Gigabit Ethernet or OC-192
protocol standards.
GigaBeam’s WiFiber technology is similar to terrestrial fiber in terms
of speed and reliability. WiFiber has a substantial advantage over
terrestrial fiber because WiFiber can be deployed in a day and costs
less to deploy than terrestrial fiber. Terrestrial fiber can take months
to deploy and also require significant regulatory and environmental
approvals prior to installation.
About GigaBeam Corporation
GigaBeam is a provider of high-performance wireless point-to-point
communications access solutions that operate in the licensed 71-76 GHz
and 81-86 GHz radio spectrum bands. GigaBeam equipment operates at
multi-gigabit-per-second speeds. GigaBeam Corporation headquarters is
located at 470 Springpark Place, Suite 900, Herndon, VA 20170. For more
information, visit www.gigabeam.com.
Safe Harbor Statement
Statements in this press release regarding GigaBeam’s products,
services, capabilities, performance, opportunities, development and
business outlook that are forward-looking involve and are subject to
known and unknown risks, uncertainties and other factors, some of which
are beyond GigaBeam’s control and difficult to predict, and could cause
actual results to differ materially from these anticipated, expressed or
forecasted in the forward-looking statements. Such risks and
uncertainties may include, but are not limited to: lack of operating
history, transitioning from a development Company to an operating
Company, difficulties in distinguishing GigaBeam’s products and
services, ability to manufacture and deploy GigaBeam’s products, lack of
or delay in market acceptance and fluctuations in customer demand,
dependence on a limited number of significant customers, reliance on
third party vendors and strategic partners, availability of raw
materials, subassemblies and components, ability to meet future capital
requirements on acceptable terms, continuing uncertainty in the
telecommunications industry and the global economy, intense competition
in the telecommunications equipment industry and resulting impact on
pricing and general financial performance, compliance with federal and
state regulatory requirements, timing, availability and success of new
technology and product introductions and the other factors discussed in
GigaBeam’s filings with the Securities and Exchange Commission. |
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