Intel and Proxim to Deliver Fixed and Portable WiMAX Products

SUNNYVALE, Calif., June 17, 2004 - Intel Corporation and Proxim Corporation today announced a collaboration to develop and deliver WiMAX solutions for fixed and portable broadband wireless access. The agreement includes the development of base station and subscriber unit access points that deliver fast wireless access for data, voice and video services.

WiMAX, known also as 802.16, is an emerging technology that allows long-range high-speed wireless Internet access, serving both dense metropolitan areas and rural or suburban communities.

“We as an industry are headed toward the ‘broadband wireless era,’ and WiMAX will play a key role in delivering on our vision,” said Scott Richardson, general manager of Intel’s Broadband Wireless Division. “The next wave is about portability, with people wanting access anywhere. Together, Intel and Proxim will enable people around the globe to use emerging services and content in their homes, businesses, and on the road.”

Initially, the companies will work together on fixed base stations (supporting the 802.16a, revision d specification), as well as customer premise equipment (CPE) for fixed wireless networks. In addition to WiMAX CPE, Proxim intends to develop a WiMAX base station marketed as the Proxim Tsunami MP.16. The new base station can be deployed as a cost-effective alternative for enterprise and service providers looking to provide high-speed broad reach access to their customers.

Also as part of the collaboration, the companies will co-develop a reference design for WiMAX CPE equipment. Intel will provide the CPE architecture, including the key hardware and software components as a reference design for other WiMAX equipment makers. The reference design will help subscriber station designers bring products to market faster, assisting in the proliferation of WiMAX for both licensed and unlicensed networks.

Proxim will target traditional wireless carrier and enterprise customers looking to provide their users with cost-effective broadband wireless solutions. Proxim will include its core wireless software capabilities that enable subscriber roaming, increased subscriber support and dynamic bandwidth management.

WiMAX for Portability
Intel and Proxim will also work together to develop base stations based on the emerging 802.16e specification designed to enable broadband wireless portability. Portability will enable powerful new applications, and will be ideal for global service providers and carriers looking to introduce advanced data services.

“Proxim strongly believes in both the technological and market potential of WiMAX and particularly portable implementations of WiMAX,” said Kevin Duffy, chief operating officer at Proxim Corporation. “We are pleased that Intel has chosen to work with Proxim to address this most exciting prospect for WiMAX technology. We will work closely with Intel to bring industry-leading WiMAX solutions to market, and to drive market adoption both at the system and client level.”

Proxim plans to deliver its fixed WiMAX-certified broadband wireless solution in early 2005, and portable WiMAX-certified solutions in late 2005. Shipment of any WiMAX Forum Certified? product is dependent on the start of interoperability and certification testing, which is currently scheduled to begin in late 2004.

About Intel
Intel, the world’s largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com.

About Proxim
Proxim Corporation is a global leader in wireless networking equipment for Wi-Fi and broadband wireless networks. The company is providing its enterprise and service provider customers with wireless solutions for public hot spots, voice and data backhaul, enterprise campuses, security and surveillance, broadband wireless access and mobile professionals. This press release and more information about Proxim can be found on the Web at www.proxim.com.

Safe Harbor
This press release may contain forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from Proxim’s expectations in these statements. For additional information regarding risks relating to Proxim's business, see Proxim Corporation's Form 10-K for the year ended December 31, 2003 and Form 10-Q for the quarter ended April 2, 2004, Current Reports on Form 8-K and other relevant materials filed by Proxim with the SEC. Proxim assumes no obligation and does not intend to update these forward-looking statements.