For Immediate Release
October 12, 1998

AirNet Communications Inks $30 Million Contract To Supply GSM-1900 Network Infrastructure To Carolina PCS

Melbourne, Florida - AirNet Communications Corporation announced today that it has received a contract valued at approximately $30 million to supply PCS (Personal Communications Services) wireless infrastructure equipment and services to Carolina PCS, the ninth largest winner by population count in the FCC's C Block PCS license auction.

Carolina PCS acquired licenses to nine contiguous Basic Trading Areas (BTAs) in South Carolina and adjacent areas of Georgia and North Carolina. Carolina PCS will serve 3.2 million residents throughout the region.

The Phase I contract calls for AirNet to provide a complete GSM (Global System for Mobile Communications) Base Station Subsystem, including operations and maintenance center, base station controller, transcoder rate adapter unit, and all associated cell sites. Some cell sites are to be fitted with AirNet's high-capacity broadband base transceiver stations while the remaining sites will be configured with innovative AirSiteTM backhaul-free base stations. AirNet will also facilitate third-party equipment financing.

AirNet's ability to seamlessly intermix its high capacity and enhanced coverage base station technologies along with its proven ability to facilitate financing for its customers were the keys to unlocking the Carolina PCS deal. "We extensively evaluated various technologies and vendors during our selection process," said Mike Green, president and CEO of Carolina PCS. "But AirNet's award-winning AirSite base station with integral backhaul made a dramatic improvement in our cash flow projections. We get cash flow positive years before we would have under our original plan. AirNet's cost effective infrastructure made the difference."

"AirNet's GSM-compliant open architecture allows us to select from a wide choice of mobile switching centers and be assured of 'plug and play' compatibility," stated Michael Kurtis, Carolina's executive vice president of Network Operations. "This strategy allows us to select the MSC that gives our customers the most comprehensive and powerful feature suite possible. We get to pick the 'best of breed' MSC for our customers."

"The future of wireless technology is first and foremost tied to the business case it provides for its target audience. Our decision to focus on GSM and its open standard is rooted in that belief," stated Dr. Lee Hamilton, AirNet's president and chief operating officer. "Open standards allow our customers to select the individual infrastructure components that make the most sense for them. Of course, it's gratifying that the vast majority of domestic C through F block GSM service providers have selected AirNet's solution."

"For years the 'mantra' of wireless network operations has been that you need one backhaul circuit for each and every cell. AirSite backhaul-free base stations allow our customers to throw that old dictum out the door." remarked Glenn Ehley, vice president of Sales and Marketing for AirNet. "Now the industry knows there is an alternative to overhead - AirNet Communications."

AirNet Communications Corporation, based in Melbourne, Florida, designs, manufactures, distributes and supports profitable GSM-based (GSM 900, GSM-1800, and GSM-1900) wireless infrastructure solutions. AirNet's products include the AirSite Base Station, the world's first base station with free backhaul - winner of the 1998 GSM World Award for Best Technical Innovation.

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Press & Investor Contact:
Gary Pacilio
AirNet Communications
+1 321.953.6609

This press release contains forward-looking statements that reflect management's expectations, assumptions, and estimates of future performance and economic conditions. Such statements are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company cautions investors that any forward-looking statements are subject to risks and uncertainties that may cause actual results and future trends to differ materially from those matters expressed in or implied by such forward-looking statements. The Company's consolidated results and the forward-looking statements could be affected by many factors, including general economic conditions in the markets in which the Company operates; economic developments that have a particular adverse effect on one or more of the markets served by the Company; the ability to execute management's strategic plan;  or the stability of key markets for communications products. Additional information concerning the factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of such filings may be obtained, when available, by contacting the Company or the SEC.

AirNet® and AirSite® are registered with the U.S. Patent and Trademark Office. AdaptaCell™, Backhaul Free™, and We're Ready for Anything™ are trademarks of AirNet Communications Corporation. Other names are registered trademarks or trademarks of their respective companies or organizations.

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