interWAVE Legal Counsel Investigates Allegations from Former Employee

interWAVE Legal Counsel Investigates Allegations from Former Employee
Nasdaq Market Listing Under Review; interWAVE Plans to Appeal 


MOUNTAIN VIEW, Calif., March 9  /PRNewswire-FirstCall/ -- interWAVE
Communications International Ltd.  today announcedthat the Company has recently
filed an amended report on Form 10-Q for the quarter ended December 31, 2003. 
In the Explanatory Note contained in the amended 10-Q filing [the Explanatory
Note is immediately after the Cover Page and immediately prior tothe Index on
Page 1 at
http://www.sec.gov/Archives/edgar/data/1095478/000110465904006227/a04-3026_110qa.htm
], interWAVE disclosed that the Company's legal counsel is investigating
allegations from a former employee of interWAVE. KPMG, LLP, the Company's
independent auditors, has informed interWAVE that its review of the Company's
financial statements in the 10-Q will not be completed until KPMG, LLP has
reviewed the legal counsel's investigation of the allegations.

Subsequent to this filing by the Company, the Company has been notified by the
Nasdaq Stock Market that its listing on the Nasdaq National Market is under
review.  This action has been taken by Nasdaq as a result of the Company's
having filed a 10-Q for the December 31, 2003 quarter for which auditor review
was not complete, which is not in compliance with Nasdaq Marketplace Rule
4310(c)(14).  As a result of this notification, the Company's stock symbol will
be changed to "IWAVE" effective with the opening of trading Wednesday March 10.

In the Company's formal notice from Nasdaq, the Company was given the
opportunity to appeal the potential delisting before a Nasdaq listings
qualification panel. The Company presently intends to avail itself of that
opportunity to appeal.  The Company expects that the panel meeting will take
place in late March or April 2004.   At this panel meeting, if the panel accepts
the Company's position, the Company would be permitted to retain its Nasdaq
listing and the "E" designation would be removed from the Company's symbol when
the Company is able to demonstrate compliance with the Nasdaq Listing
Qualification rules.

The Company expects that the investigation of the allegations by the former
employee will be completed shortly and intends to work with its independent
auditors to facilitate their review of the allegations and the outcome of the
investigation.  The Company presently anticipates to complete this process in
the relatively near term, prior to a hearing before the Nasdaq listings
qualification panel.

Forward Looking Statements

This news release contains forward-looking statements that are subject to known
and unknown risks and uncertainties that could cause the results of interWAVE
Communications International, Ltd. to differ materially from management's
current expectations. These risks and uncertainties include, but are not limited
to, potential noncompliance with NASDAQ National Market continued listing
requirements, potential lack of liquidity and capital resources, compliance with
regulations, as well as the Risk Factors discussed in the filings and reports
made from time to time by interWAVE with the Securities and Exchange Commission.


DATASOURCE: interWAVE Communications International, Ltd



CONTACT:  Cal R. Hoagland,SVP & CFO of interWAVE, [phone],

 



Web site:  http://www.iwv.com/

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