P-Com Restructures Italian Operations

P-Com Restructures Italian Operations
Transaction Lowers Costs, Improves Liquidity 


CAMPBELL, Calif., June 15  /PRNewswire-FirstCall/ -- P-Com, Inc. (OTC:PCOM)
(BULLETIN BOARD: PCOM) , a worldwide provider of wireless telecom products and
services, today announced a restructuring of its Italian operations conducted
by P-Com Italia, S.p.A. that will result in significant cost savings and
improved liquidity.

Under the restructuring plan, P-Com Italia will focus on research and
development, and the manufacturing of specific component parts, while
outsourcing certain repair operations to NORT S.r.L, an Italian third-party
contract manufacturer staffed by former employees of P-Com Italia.

The restructuring involved the sale of P-Com Italia's 36,000 square foot
facility in Tortona, Italy and a reduction in workforce of approximately ten
employees who were rehired by NORT. P-Com received approximately $732,000 from
the sale of the facility, and its operating expenses are expected to decrease
by approximately $500,000 annually.

"The restructuring of P-Com Italia is an important strategic move for P-Com
that enables us to focus on our core products, lower operating expenses, and
provides for greater liquidity by re-deploying under-utilized assets," said
P-Com President and CEO Sam Smookler. "This transaction is part of our ongoing
program to strengthen our balance sheet, improve our competitiveness and
position P-Com for long-term growth."

NORT's CEO Giorgio Pertusati said:  "We are extremely pleased to broaden our
relationship with P-Com. This transaction, which reflects NORT's ability to
deliver world-class outsourcing services, allows P-Com to focus on its broader
business objectives, while maintaining the highest quality standards in its
repair operations."

Over the past two years, P-Com has executed a successful financial
restructuring that eliminated a substantial portion of its debt, substantially
cut operating expenses and refocused its operations. In April, P-Com reported
its fourth consecutive quarter of higher sales and gross margins.

About P-Com, Inc.

P-Com, Inc. develops, manufactures, and markets point-to-point, spread spectrum
and point-to-multipoint, wireless access systems to the worldwide
telecommunications market. P-Com broadband wireless access systems are designed
to satisfy the high-speed, integrated network requirements of Internet access
associated with Business to Business and E-Commerce business processes.
Cellular and personal communications service (PCS) providers utilize P-Com
point-to-point systems to provide backhaul between base stations and mobile
switching centers. Government, utility, and business entities use P-Com systems
in public and private network applications. For more information visit
http://www.p-com.com/ or call 408-866-3660.

About NORT, S.r.l.

Nuove Officine Radio Tortona (NORT S.r.l.) is an Italian company specializing
in the development, manufacture, repair and maintenance of wireless link
components. With its wide range of transceivers, synthesizers and amplifiers,
NORT is a leading provider of high quality components for the world's largest
wireless system manufacturers for broadcasting, telecom, rural telephony, and
defense applications. For more information visit http://www.nortradio.com/ or
call [phone].

Safe Harbor Statement

Statements in this release that are forward looking involve known and unknown
risks and uncertainties, which may cause P-Com's actual results in future
periods to be materially different from any future performance that may be
suggested in this conference call. Such factors may include, but are not
limited to:  the ability to achieve positive cash flow given the Company's
existing and anticipated operating and other costs, and current sales trends;
the Company's deteriorating cash position and its need to raise additional
capital, and whether that capital is available on acceptable terms, if at all;
the Company's ability to negotiate repayment terms with many of its creditors,
and settle outstanding litigation; a continued severe worldwide slowdown in the
telecommunications equipment and services sector; fluctuations in customer
demand, pricing and competition; reliance upon subcontractors; the ability of
P-Com's customers to finance their purchases; the timing of new technology and
product introductions; and the risk of early obsolescence. Many of these risks
and uncertainties are beyond P-Com's control. Reference is made to the
discussion of risk factors detailed in P-Com's filings with the Securities and
Exchange Commission, including its reports on Form 10-K and 10-Q.

  Media Contact:                 Investor Contact:
   Greg Berardi                   Dan Rumsey, General Counsel and Acting CFO
   [phone]                [phone]
       

DATASOURCE: P-Com, Inc.



CONTACT:  media, Greg Berardi, [phone], or

, for P-Com, Inc.; or investors, Dan Rumsey,

General Counsel and Acting CFO, of P-Com, Inc., [phone], or





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

Web site:  http://www.p-com.com/

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