5G Wireless Quarterly Report Reflects Significant Increase in Revenues Fueled By University Campus Market Focus
Tuesday August 17, 9:15 am ET

MARINA DEL REY, Calif.--(BUSINESS WIRE)--Aug. 17, 2004--5G Wireless Communications, Inc. (OTCBB:FGWC - News), an emerging leader in the design, manufacture, and deployment of wireless broadband (WiFi) network equipment, announced today the highlights of its 10-QSB SEC filing for the period ended June 30, 2004.
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For the 6 months ended June 30, 2004, contrasted with the 6 months ended June 30, 2003, revenue from continuing operations increased 157%, from $71,639 to $183,795. The trend is primarily attributable to increased equipment sales to university campus customers and is expected to continue through the year. Concomitantly, operating expenses increased by 125%, from $1,076,096 to $1,933,732, primarily due to additional staff requirements to build and ship the equipment. These general and administration expenses are expected to increase during the next quarter. The net loss for the 6-months increased from $845,721 to $1,880,729 as a result of increased operating expenses throughout the period.

For the 3 months ended June 30, 2004, compared with the 3 months ended June 30, 2003, revenue increased 120% from $53,180 to $117,246, while operating expenses decreased 15%, from $620,290 to $525,288. These general and administration expenses are expected to increase during the next quarter. The 120% revenue increase is primarily attributable to increased equipment sales to university campus customers and the 15% decrease in operating expenses is primarily due to lowered wireless equipment manufacturing costs as the company streamlines operations. The net loss for the period decreased from $626,834 to $493,426 as a result of these streamlined operations over the most recent quarter.

"The relatively long sales cycles associated with decision making at the campus IT level are finally coming to fruition," stated Jerry Dix, 5G Wireless CEO. "Leveraging the success of our networks in both the University of California and Cal State University systems has proven effective, as we had hoped. We're also now in a position to share our experiences with the top technology analysts and national media outlets, where our enhanced technology and low cost of ownership messages have been positively received. We also plan to increase our association and trade show activities as an efficient means of reaching vertical market prospects."

The company continues to work with selected VARs to expand distribution throughout the U.S. and targeted overseas markets, including OEM agreements such as the recent arrangement with Nomadix, and ISP relationships such as Freedom Online throughout Florida. The company also will expand its Advisory Board with such luminaries as the recently appointed Bob McNamara, a wireless industry pioneer who holds over 20 technology patents.

About 5G Wireless Communications, Inc.

5G Wireless Communications, Inc. (www.5gwireless.com), located in Marina del Rey, Calif., develops and sells wireless broadband solutions. 5G Wireless customers receive dependable, high-speed Internet access at lower acquisition and implementation costs than most major competitors. 5G Wireless' products are distinguished by their exceptional data rate/range, number of concurrent users, line-of-sight capabilities and a unique security protocol. These features are particularly significant through 5G Wireless' use of IEEE 802.11b enhancements for "last mile" roaming and point-to-multi-point networks.