Terabeam Wireless Announces Financial Results for Its Second Quarter 2005

Terabeam Wireless, the business name of YDI Wireless,
Inc. (NASDAQ:YDIW), a leading developer and supplier of broadband
wireless solutions, today announced its financial results for its
second quarter ended June 30, 2005. These financial results do not
include any impact of Terabeam's acquisition of substantially all the
assets of Proxim Corporation, which was completed on July 27, 2005.
   Revenue for the quarter ended June 30, 2005 was $7.2 million, an
increase of approximately 9% from the revenue of $6.6 million for the
quarter ended March 31, 2005 and an increase of approximately 51% from
the revenue of $4.7 million for the quarter ended June 30, 2004. The
significant increase in revenue over the prior year's comparable
quarter resulted primarily from three factors: a full quarter of
combined operations with the three companies Terabeam Wireless
acquired in the later part of the second quarter of 2004; increased
demand especially for our point-to-multipoint products, our high
frequency radio products, and our component parts business; and
increased demand for our software-enhanced product offerings.
   The net loss for the quarter ended June 30, 2005 was $987,000
($0.04 per share-diluted) compared to net loss of $970,000 million
($0.04 per share-diluted) for the quarter ended March 31, 2005 and net
loss of $1.6 million ($0.10 per share-diluted) for the quarter ended
June 30, 2004.
   As of June 30, 2005, Terabeam Wireless had current assets of
approximately $46.0 million, total liabilities of less than $9.0
million, and stockholders' equity of over $62.0 million.
   Robert Fitzgerald, Terabeam's Chief Executive Officer, stated, "We
are pleased to announce our third consecutive quarter of sequential
growth as well as growth of over 50% from a year ago. We believe that
our second quarter performance provides a solid foundation for the
combination of our efforts with those of the recently acquired Proxim
assets. Over the last year, we have bought back over 5.7 million
shares of our stock. We believe that we are well positioned to execute
on the leverage provided by the Proxim acquisition and look forward to
the challenge."

   Conference Call Information

   Terabeam Wireless will host a conference call to discuss this
release, financial results, developments at the company (including the
recent acquisition of substantially all of the assets of Proxim
Corporation), and other matters of interest to investors and others on
August 3, 2005 starting at 8:00 a.m. Eastern Time. The discussion may
include forward-looking information.
   To participate in this conference call, please dial 800-967-7184
(or 719-457-2633 for international callers), confirmation code 6153410
for all callers, at least ten minutes before start time. The
conference call will also be broadcast live over the Internet.
Investors and others are invited to visit Terabeam Wireless' website
at http://www.terabeam.com/corporate/ to access this broadcast.
Replays will be available telephonically for approximately one week by
dialing 888-203-1112 for domestic callers and 719-457-0820 for
international callers, confirmation code 6153410 for all callers, and
over the Internet for approximately 90 days at Terabeam Wireless'
website at http://www.terabeam.com/corporate/.

   About Terabeam Wireless

   Terabeam Wireless is the business name of YDI Wireless, Inc.
Terabeam Wireless is a world leader in providing extended range,
license-free wireless data equipment and is a leading designer of
turnkey long distance wireless systems ranging from 9600 bps to 1.42
Gbps for applications such as wireless Internet, wireless video,
wireless LANs, wireless WANs, wireless MANs, and wireless virtual
private networks. Additional information about Terabeam Wireless as
well as its complete product line can be found at the company's
website located at http://www.terabeam.com or by contacting the
company by telephone at 413-584-1425 or by email at [e-mail].

   Safe Harbor Statement

   Statements in this press release that are not statements of
historical facts are forward-looking statements that involve risks,
uncertainties, and assumptions. Terabeam Wireless' actual results may
differ materially from the results anticipated in these
forward-looking statements. The forward-looking statements involve
risks and uncertainties that could contribute to such differences
including those relating to the downturn and ongoing uncertainty in
the telecommunications industry and larger economy; the intense
competition in Terabeam Wireless' industries and resulting impacts on
its pricing, gross margins, and general financial performance;
difficulties in predicting Terabeam Wireless' future financial
performance; difficulties or delays in developing and supplying new
products with the contemplated or desired features, performance, cost,
price, and other characteristics; risks arising from and relating to
Terabeam Wireless' recent acquisition of Proxim Corporation's
operations, assets, and relationships; and the impacts and effects of
any other strategic transactions we may evaluate or consummate.
Further information on these and other factors that could affect
Terabeam Wireless' actual results is and will be included in filings
made by Terabeam Wireless from time to time with the Securities and
Exchange Commission and in its other public statements.

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                          YDI WIRELESS, INC.
                      CONSOLIDATED BALANCE SHEETS
                 (In thousands, except per share data)


                                               June 30,   December 31,
                                                2005         2004
                                             ------------ ------------
                                             (unaudited)
Assets
Current assets:
 Cash and cash equivalents                       $34,038      $35,368
 Investment securities - available-for-sale          340        5,369
 Accounts receivable, net                          3,751        2,972
 Refundable income taxes                               -          151
 Inventory                                         7,471        7,442
 Prepaid expenses                                    393          253
                                             ------------ ------------
     Total current assets                         45,993       51,555

Property and equipment, net                        2,367        2,511
Other Assets:
 Restricted cash                                   5,076        5,136
 Goodwill                                          6,013        6,072
 Intangible assets, net                           11,502       11,919
 Deposits                                             99           91
                                             ------------ ------------
     Total other assets                           22,690       23,218
                                             ------------ ------------
     Total assets                                $71,050      $77,284
                                             ============ ============
Liabilities and Stockholders' Equity
Current liabilities:
 Accounts payable and accrued expenses            $4,763       $6,965
 Deferred revenue                                    148          159
 Current maturities of notes payable               2,767        2,899
                                             ------------ ------------
     Total current liabilities                     7,678       10,023
Notes payable, net of current maturities           1,255        1,270
                                             ------------ ------------
     Total liabilities                             8,933       11,293
Commitments and contingencies
Stockholders' Equity
 Preferred stock, $0.01 par value;
  authorized 4,500,000, none issued at June
  30, 2005 and December 31, 2004                       -            -
 Common stock, $0.01 par value, 100,000,000
  shares authorized, 21,389,287 issued and
  outstanding at June 30, 2005 and
  22,845,847 issued with 22,345,847
  outstanding at December 31, 2004                   214          228
 Additional paid-in capital                       56,518       59,637
 Retained earnings                                 5,319        7,277
 Treasury stock                                        -       (1,155)
 Accumulated other comprehensive income:
   Net unrealized gain (loss) on available-
    for-sale securities                               66            4
                                             ------------ ------------
     Total stockholders' equity                   62,117       65,991
                                             ------------ ------------
     Total liabilities and stockholders'
      equity                                     $71,050      $77,284
                                             ============ ============

                          YDI WIRELESS, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)
                              (unaudited)


                        For the Three Months     For the Six Months
                            Ended June 30,          Ended June 30,
                       ----------------------- -----------------------
                          2005        2004        2005        2004
                       ----------- ----------- ----------- -----------
Revenues                   $7,165      $4,733     $13,762     $10,750
Cost of goods sold          3,687       3,193       7,006       6,744
                       ----------- ----------- ----------- -----------
  Gross profit              3,478       1,540       6,756       4,006
Operating expenses:
  Selling costs             1,034         480       2,031         920
  General and
   administrative           2,777       2,180       5,285       3,907
  Research and
   development                879         477       1,650         969
                       ----------- ----------- ----------- -----------
     Total operating
      expenses              4,690       3,137       8,966       5,796
                       ----------- ----------- ----------- -----------
Operating income
 (loss)                    (1,212)     (1,597)     (2,210)     (1,790)
Other income
 (expenses):
  Interest income             269          26         490          50
  Interest expense            (70)        (34)       (136)        (63)
  Other income (loss)           3           -        (115)        503
                       ----------- ----------- ----------- -----------
     Total other
      income
      (expenses)              202          (8)        239         490
                       ----------- ----------- ----------- -----------
Income (loss) before
 income taxes              (1,010)     (1,605)     (1,971)     (1,300)
  Benefit (provision)
   for income taxes            23           -          14          (2)
                       ----------- ----------- ----------- -----------
Net income (loss)           $(987)    $(1,605)    $(1,957)    $(1,302)
                       =========== =========== =========== ===========
Weighted average
 shares - basic  and
 diluted               22,009,434  15,799,225  22,204,249  15,016,816
                       =========== =========== =========== ===========
  EPS, basic and
   diluted                 $(0.04)     $(0.10)     $(0.09)     $(0.09)
                       =========== =========== =========== ===========
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