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interWAVE(R) Communications announced that it has signed a definitive agreement to acquire substantially all of the assets of a 3G CDMA 2000 company, GBase Communications (GBase) of Walnut Creek, California for 4.5M of interWAVE shares. GBase is a developer and manufacturer of CDMA 2000 Base Station Systems (BSS) and Packet Data Serving Nodes (PDSNs) for 3G markets, under a license from Qualcomm, Inc.

Picture shows Dr. Priscilla M. Lu, CEO and Chairman of the Board. "We are extremely pleased with the acquisition of this CDMA 2000 product family with state of the art 1XRTT and EVDO capabilities to add to our cellular product line. We have been seeing an increasing momentum behind CDMA 2000 over the last few years, with a subscriber growth rate of over 35% per year. The overall market potential of the infrastructure market for CDMA 2000 is over $5B per year. The CDMA 2000 high bandwidth performance of cellular data services of over 2 Mbits per second, positions it as one of the pivotal technologies over the next few years. We are pleased to welcome Kiomars Anvari, founder and CEO of GBase and his team to interWAVE. Kiomars, with his extensive background in cellular and his elite team of 3G experts, is a strategic addition to interWAVE," said Priscilla Lu, Chairman and Chief Executive Officer of interWAVE. "This acquisition will accelerate interWAVE's position in the 3G CDMA 2000 market, and opens up opportunities in North America, China, Latin America, Korea, Japan and many other countries."

"I am delighted to be joining the interWAVE team," said Kiomars Anvari, President and Chief Executive Officer of GBase. "The extensive experience and global presence of interWAVE will bring our products to the market quickly, enabling us to reach markets worldwide. At the same time, we will benefit from the broad cellular end to end expertise of interWAVE's team, from engineering, service support, marketing, sales, to its strong partnerships and alliances."
This product family of CDMA 2000 acquired from GBase, is backward compatible with CDMA IS-95. It consists of a unique, patented IP based architecture of CDMA 2000 Base Transceiver Stations (BTS) combined with Base Station Controller (BSC) capabilities connected to the soft switch and PDSN over IP. This IP based CDMA 2000 network solution can be integrated to legacy wireless network through SS7 Signaling Gateway (SG). The GBase solution is scalable and supports compact BSSs for in-building enterprise and outdoor campus network markets. It can also be configured to support a multi-carrier sectorized BTS for public micro and macro networks.

The product line also provides a PDSN on both the PC as well as a UNIX server. The compact and cost effective PDSN allows operators to locally distribute and install IP gateways in small communities, campus and buildings, which aligns well with interWAVE's market focus for the its GSM product line.

The GBase product line, one of the most compact, integrated designs for CDMA 2000, is available for field trial and will be production ready by the end of the year. A number of systems have already been purchased and shipped to customers for trials.