Proxim Reaches Settlement with Intersil on Patent Litigation

Companies Sign Patent Cross-License and Product Supply Agreements

As part of the confidential settlement agreement, the two companies have entered into a patent cross-license agreement for their respective patent portfolios and Intersil will make a one-time payment of $6 million to Proxim. The two companies have also entered into a product supply agreement defining the terms under which Proxim will be able to purchase 802.11 products that utilize Intersil's chipsets.

"Proxim is very pleased that we have been able to reach an agreement with another major WLAN IC supplier on the use of our valuable intellectual property," said David King, vice-chairman of Proxim's Board of Directors. "Our agreement with Intersil reinforces the importance of Proxim's intellectual property and will enable us to continue to focus on developing innovative, industry-leading wireless solutions."

In August 2002, Proxim announced that it settled patent-related litigation with Agere Systems, Inc. as part of the acquisition of the ORiNOCO equipment business.

Proxim intends to continue to pursue licensing agreements related to its wireless LAN patents and to vigorously defend its intellectual property rights. Proxim expects to record a charge of approximately $3 million in the first quarter of 2003 for legal fees and other litigation-related expenses associated with this settlement and the defense of its intellectual property.

About Proxim
Proxim Corporation is a leader in wireless networking. It is the only company exclusively focused on both high-performance indoor and outdoor wireless networking, with the broadest range of wireless infrastructure and clients products in the world. Proxim's award-winning line of ORiNOCO wireless local area network (WLAN) products support all Wi-Fi standards and provide unsurpassed computing mobility and security. Its line of Tsunami wireless wide area network (WWAN) Ethernet bridges reliably connect networks between locations up to 40 miles apart, and with speeds up to 860 Mbps. The company also makes Lynx, a line of microwave radios used for cellular backhaul. Proxim Corporation was created by the merger of Proxim, Inc. and Western Multiplex Corporation in March 2002. Its web site is www.proxim.com.

Safe Harbor
This press release includes forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ materially. Statements regarding the expected benefits of the settlement, and the patent license and supply agreements with Intersil, including statements regarding our ability to focus on developing innovative, industry-leading wireless solutions, our intention to pursue licensing agreements and our intention to vigorously defend our intellectual property rights are subject to the following risks: that the expected benefits will not be achieved; the inability to identify, develop and achieve success for new products, services and technologies; increased competition and its effect on our pricing and need for marketing; that litigation initiated by Proxim may not be resolved in a manner favorable to Proxim; that our litigtion strategy may consume a significant amount of our cash resources and management attention; that third parties may not agree to enter into licensing arrangements with Proxim; that Proxim may be subjected to increased risk of lawsuits from third parties; and other risks and uncertainties associated with Proxim's business. For additional information regarding risks relating to Proxim's business, see Proxim Corporation's Forms 10-Q filed on November 12, 2002, on August 12, 2002, as amended, and on May 13, 2002, Western Multiplex Corporation's registration statement on Form S-4 filed on February 25, 2002, Western Multiplex Corporation's Form 10-K for the year ended December 31, 2001 and subsequent Forms 8-K, Proxim, Inc.'s Form 10-K for the year ended December 31, 2001 and subsequent Forms 8-K, and other relevant materials filed by Proxim with the SEC.