Motorola and Proxim Announce Equity Investment and Strategic Partnership

Broad Partnership Focuses on Wireless Local Area Networking and Broadband Internet Access for Homes and Small Offices

ARLINGTON HEIGHTS, Ill.--(BUSINESS WIRE)--June 2, 1999-- Motorola, Inc. (NYSE:MOT - news) and Proxim, Inc. (Nasdaq:PROX - news) today announced that the two companies have entered into a strategic partnership that will accelerate the deployment of wireless broadband Internet access for homes and small offices.

This unique partnership will combine the strengths of Motorola, a global leader in wireless communications and broadband Internet access over cable, with Proxim, the worldwide market leader in wireless local area networking. This partnership will produce integrated high-speed wireless networking products based on the HomeRF SWAP (Shared Wireless Access Protocol) industry standard.

As part of the relationship, Motorola will make a $10 million equity investment in Proxim, with warrants to purchase additional shares in the future.

``Motorola views local wireless connectivity as a key component of its broadband access strategy. Proxim's wireless local area networking products and SWAP technology complement our current portfolio of wireless and wireline networking products,'' noted Randy Battat, Senior Vice President and General Manager of Motorola's Internet and Networking Group.

``Consumers will be able to extend the value of their cable modem access with wireless in-building connectivity using industry-standard cable modem and wireless technologies.''

``Motorola possesses both a powerful wireless brand name as well as market leadership in broadband cable access to the Internet,'' said David C. King, chairman, president and CEO of Proxim.

``Together, Motorola and Proxim are in an excellent position to rapidly broaden the availability of high-speed cordless networking technology for home and business users. This relationship helps advance Proxim's strategic objective of providing ubiquitous wireless Internet access for customers in every environment.''

The companies will demonstrate broadband gateways that enable simple-to-install, wireless Home and SOHO networking for PCs and Internet appliances at the NCTA Cable Show from June 14-16 in Chicago. The demonstration will be available in Motorola's booth (No. 4738).

About HomeRF and SWAP

The HomeRF Working Group (HomeRF) was formed to provide the foundation for a broad range of interoperable consumer devices by establishing an open industry-standard specification for wireless digital communication between PCs and consumer electronic devices.

Both Motorola and Proxim are core members of the HomeRF, which also includes Compaq, Hewlett-Packard, IBM, Intel, and Microsoft, among other companies. The HomeRF SWAP specification defines a common over-the-air interface that supports wireless voice and data networking in and around the home.

SWAP-compliant products operate in the license-free 2.4 GHz frequency band and utilize frequency hopping spread spectrum RF technology for secure, interference-immune communications. See www.homerf.org for additional information on the HomeRF and SWAP.

About the Companies

Motorola's Multimedia Group (MMG), a group within the Internet and Networking Group (ING) develops, manufactures and markets systems for the convergence of voice, data and video communications services over advanced broadband multimedia platforms.

With more than half-a-million cable modems deployed around the world, Motorola is leading the trend to enable an increasing number of businesses and individuals to access the internet more quickly, easily, and securely than ever before. Motorola has shipped infrastructure to support nearly 4 million cable modem subscribers worldwide. For more information, visit www.mot.com/multimedia.

Motorola is a global leader in advanced electronic systems and services. It liberates the power of technology by creating software-enhanced products that provide integrated customer solutions and Internet access via wireless and satellite communications, as well as computing, networking, and automotive electronics.

Motorola also provides essential digital building blocks in the form of embedded semiconductors, controls and systems. Sales in 1998 were $29.4 billion.

Headquartered in Mountain View, Calif., Proxim, Inc., is the world's leading supplier of spread spectrum wireless LAN products to OEMs and wireless solutions providers. In 1994, Proxim was first to market with its industry-leading RangeLAN2(TM) 2.4 GHz frequency hopping wireless LAN product family, which has attracted more than 100 OEMs and wireless solutions providers worldwide.

In 1998, the company introduced its high-performance RangeLAN802(TM) product line, which operates at 2 Mbps and is fully compliant with the IEEE 802.11 standard. In 1999, Proxim has established itself as a leader in the emerging home networking market with its award-winning Symphony(TM) suite of cordless networking products for home and small office environments.

Proxim is a founding member of the Wireless LAN Interoperability Forum (WLI Forum), established to deliver and test interoperable wireless LAN products and services (www.wlif.com). Proxim is also a core member of the Home Radio Frequency Working Group (HomeRF), which is committed to providing a broad range of interoperable cordless consumer devices (www.homerf.org). See www.proxim.com for additional information.

Note to Editors: Proxim, RangeLAN2, RangeLAN802, Symphony, Conductor, Maestro and Composer are all trademarks of Proxim. All other company and product brand names are trademarks or registered trademarks of their respective companies.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbors created by those sections. These forward-looking statements concern accelerating the deployment of wireless broadband Internet access for homes and small offices, the development and availability of integrated high-speed wireless networking products, the development of industry standards and strategic partnerships. Forward-looking statements involve a number of risks and uncertainties including, but not limited to, Proxim's ability to successfully develop, manufacture and gain market acceptance of new products, in particular its home networking products; dependence on the emerging home networking market segment; the cost, availability and quality of assemblies and finished products from contract manufacturers; dependence on a limited number of OEM customers; rapid technological change; evolving industry standards; international sales; the highly competitive nature of the wireless LAN market segment; and other factors more fully described in Proxim's reports to the Securities and Exchange Commission, including, but not limited to, the report on Form 10-K for the year ended December 31, 1998, and the reports on Form 10-Q. Actual results may differ materially from such forward-looking statements. Proxim does not undertake to update any oral or written forward-looking statements that may be made by or on behalf of Proxim.