Press Releases

BreezeCOM Ltd. Reports First Quarter 2001 Results

TEL AVIV, Israel/CARLSBAD, Calif.--BreezeCOM (NASDAQ:BRZE - news), a leading provider of high-speed wireless access solutions, today announced financial results for the first quarter ended March 31, 2001.

Revenues for the first quarter ended March 31, 2001, were $23.9 million, an increase of 53% compared with revenues of $15.6 million for the first quarter ended March 31, 2000. Net income for the first quarter was $63,000, compared with a net loss of $(256,000) for the same period in 2000. For the first quarter, diluted earnings per share was $0.00, compared with a $(0.01) loss per share for the first quarter ended March 31, 2000.

Zvi Slonimsky, President and CEO of BreezeCOM, stated, "Although we were affected by the abrupt downturn in the U.S. market, our ongoing geographic diversification efforts continued to help us by lowering our dependence on U.S. sales. While U.S. market conditions were difficult, our sales in Europe, Latin America and Southeast Asia went according to our business plan. In these regions, we have continued to successfully deploy 3.5GHz, unlicensed and MMDS networks."

"We continue to focus on product development that addresses continuously evolving market requirements. During the quarter, we announced our new Orthogonal Frequency Division Multiplexing (OFDM) product lines. The OFDM line delivers higher speeds and extends our market reach by enabling service providers to address medium to large enterprises. We also use the same OFDM technology for the network backbone. Providing higher speed and improved spectral efficiency, the new BreezeACCESS OFDM products also deliver better non-line-of-sight operation with robust resistance to multi-path and other types of interference."

"This quarter, we cemented our partnership with a very important Japanese wireless ISP, SpeedNet Corporation, which, following extensive trials over the past year, placed an initial multi-million dollar order for BreezeACCESS II equipment. SpeedNet, the result of a joint venture between Tokyo Electric Power Co., Softbank and Microsoft, is planning an extensive wireless network and has the potential to become one of the largest ISPs in the world. This initial order is scheduled for delivery throughout year 2001.

"In order to strengthen and diversify our client base, we are expanding our focus and operations in selected markets which show increased telecommunication expenditure. One such market is that of cellular operators. Our broadband wireless access products allow cellular operators to capitalize on their existing cellular infrastructures by utilizing their existing towers, backbone networks, client bases and wireless expertise to provide broadband services. During the past six months, we have also targeted rural telephone companies, i.e., the incumbent telephone companies in rural or remote locations which have begun deploying our products to provide high-speed Internet services."

"In keeping with a continued focus on international markets during the recent downturn in the U.S. economy, we too have directed our marketing and sales efforts in this direction. We announced last quarter the opening of a marketing and support office in Frankfurt, Germany. This office will support sales by OEM, distribution and system integrators in Germany."

"The pending merger with Floware, announced at the beginning of last month, will create the leading global provider of point-to-multipoint broadband wireless access equipment. We have continued our joint efforts to plan the integration of BreezeCOM and Floware, and I am happy to report this work is progressing well and according to our timetable. Work is being done by several groups addressing all business aspects, which we believe will lead to increased efficiency and economies of scale. The merger is on track for closure in the third quarter of 2001. BreezeCOM is now stronger than ever and, with the Floware merger, the new entity will become an even more formidable force in our market with the ability to better serve our customers, investors and employees. Management of both companies continue to be extremely excited at the opportunity this merger will provide us to become the global leader in this fast growing market."

About BreezeCOM
BreezeCOM is the leading provider of Broadband Wireless Access (BWA) solutions used by service providers and enterprises. Its products provide a wireless alternative to wired access solutions, such as DSL and cable modems, and facilitate indoor and outdoor, as well as fixed and mobile wireless LAN connectivity. BreezeCOM products are based on a packet switching point-to-multipoint wireless platform, optimized for high-speed Internet and intranet access. Core technologies include spread spectrum radio, digital signal processing, modems, networking protocols and VLSI. For more information on BreezeCOM, please visit www.breezecom.com.

For Quarterly Report, please select: Q1 2001 Financial Report.

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