ARC Wireless To Sell Winncom Technologies For $17 Million

Wheat Ridge, CO -- ARC Wireless Solutions, Inc. has entered into an agreement, subject to approval by ARC's Shareholders, to sell Winncom Technologies Corp., its wholly owned subsidiary, to a recently formed Irish entity for $17 million in cash. In 2005, Winncom accounted for approximately 82% of ARC's revenue and net assets and 50% of its net income. In 2000, ARC purchased Winncom for approximately $12.72 million, with the purchase price consisting of $6.72 million in cash and 6.9 million shares of ARC common stock.

The proceeds from the sale are intended to be used for future acquisitions and the expansion of ARC's existing Wireless Communications Solutions Division and Starworks Wireless subsidiary. "We intend to use the proceeds to pursue synergistic acquisition opportunities, to provide expansion capital to accelerate product development, and for other opportunities that our Board may determine to be in the best interests of our shareholders," stated Randall P. Marx, Chairman and CEO of ARC Wireless. "Although Winncom has been a valuable asset for us, the sale will allow us the opportunity to focus attention on the possibility of acquisitions of other businesses with their own core technologies," added Mr. Marx.

ARC is in the process of preparing a proxy statement to be filed with the Securities and Exchange Commission and subsequently mailed to all of its shareholders concerning the stockholder meeting at which the proposed transaction will be voted upon. The proxy statement will include notice of the date and time of the meeting, as well as a description of the matters to be voted upon. It is anticipated that the stockholders' meeting will be held within the next 90 days.

SOURCE: ARC Wireless Solutions, Inc.