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5G Wireless Communications, Inc. Files Form 10QSB for Second Quarter Results
1:42 PM EDT September 24, 2007
TORRANCE, CA -- (MARKET WIRE) -- 09/24/07 -- 5G Wireless Communications, Inc. (OTCBB: FGWI), a leader in the wireless broadband industry, designing, manufacturing, installing and operating networks at many university and college campuses, hospitality and time share locations, healthcare and senior care facilities, has filed its second quarter Form 10-QSB bringing the company current. We are advised that the "E" is removed.

Revenues from the equipment sales and service and WISP operations were $291,563 for the three months ended June 30, 2007 compared to $89,302 for the three months ended June 30, 2006, an increase of $202,261 or approximately 226%. Revenue from the equipment sales and service and WISP operations was $389,297 for the six months ended June 30, 2007 compared to $298,402 for the six months ended June 30, 2006, an increase of $90,895 or approximately 30%.

The increase in revenue was primarily attributable to a significant growth in WISP locations during this quarter as well as ongoing equipment sales from the university campus market place. The Company expects the current sales personnel to increase sales as more university campuses look to upgrade their network infrastructure. Further, the WISP operation is expected to continue revenue growth over the next twelve months. With over 5,000 rooms currently being serviced nationwide and contracts in place for an additional 5,000 rooms, we see the WISP division as a very predictable revenue model and as more travelers bring their laptops and PDAs with them on trips, this per room rate is expected to rise significantly from the $10- $12 originally projected.

Cost of revenues was $186,357 for the three months ended June 30, 2007 compared to $115,075 for the three months ended June 30, 2006, an increase of $71,282 or approximately 62%. Cost of revenues was $393,262 for the six months ended June 30, 2007 compared to $260,377 for the six months ended June 30, 2006, an increase of $132,885 or approximately 51%. The increase was principally due to increased product sales and increased WISP costs associated with increased WISP revenue. Going forward, the Company expects cost of revenue to increase in the aggregate but to increase at a lower rate in relation to increases in sales revenue. As WISP revenue increases, the cost of revenue that includes royalties, customer service and credit card processing costs is expected to increase as well.

Total operating expenses were $1,234,907 for the three months ended June 30, 2007 compared to $999,866, an increase of $235,041 or approximately 24%. Total operating expenses were $2,119,349 for the six months ended June 30, 2007 compared to $1,900,840, an increase of $218,509 or approximately 11%. The increase is principally attributable to increased use of outside law firms associated with the Longview litigation. As revenue increases, operating expenses are expected to increase during the next twelve months.

"Although our cost for operations increased 11% over this same six-month period compared to 2006, the company is beginning to see results from it's deployments to time share and multi-dwelling units," said Jerry Dix, CEO of 5G Wireless. "Once our capital expense is recovered, which we calculate to be within the first year, these properties will continue to generate profitable revenue for the duration of their contracts, usually 5 years and are renewable for additional five-year terms and in accordance with the Company's desire to achieve a more consistent and predictable revenue stream, WISP revenue increased 63% to $128,575 in the second quarter."

"The big expenses are the upfront costs associated with installing the networks at the various resorts and multiple dwellings. Although we anticipated these capital expenses to stretch us initially we realize the long term benefits and how they will increase the revenue and profits for the company. Now we are being engaged by management companies that want total property coverage while paying the company a fixed monthly fee for each rentable unit, enabling us to increase the predictable monthly revenue as we grow the company." Mr. Dix continued, "And we are also seeing a renewed interest from campus and university sales that we expect will deliver results in the next quarter."

In other news, the company has relocated it's offices to 2771 Plaza del Amo Suite 805, Torrance, California 90503; telephone number 800.916.1611, fax number 310-328-0498. This move provides for a more effective manufacturing facility that will help the company reduce overall operating expenses.

About 5G Wireless Communications, Inc.

5G Wireless Communications, Inc. is a designer, developer & manufacturer of RF equipment deploying state-of-the-art commercial grade Wi-Fi utilizing proven cellular style architecture. Our products provide solutions for hospitality resorts; universities and college campuses; and enable service providers, municipalities, and public safety agencies a cost-effective broadband infrastructure so that voice over IP (VoIP), video surveillance, and other wireless applications can be rapidly deployed. Our technology utilizes a number of sophisticated modifications to both radio and hardware platforms, based on standard IEEE 802.11b/g Wi-Fi equipment, to extend range, reduce interference, and maximize frequency usage. This enables us to deliver highly reliable and scalable solutions designed to maximize coverage using the least amount of hardware in the industry, resulting in the lowest Total Cost of Ownership (TCO) in the market today. In addition, the company offers a suite of services including RF consulting and network design, implementation and complete back office support with customer care and network monitoring to ensure that networks maintain peak performance and revenue. 5G's value proposition -- significantly increased performance at the lowest possible Total Cost of Ownership (TCO) -- is quickly becoming a key consideration in the strategic deployment of the wireless experience. The company is located in Torrance, CA. For additional information call 800.916.1611 or visit www.5gwireless.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise which could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors including, but not limited, to those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

Media Contact: Jerry Dix 5G Wireless Communications (800) 800.916.1611

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