For Immediate Release
August 31, 1998

AirNet Communications Awarded $17 Million Contract To Supply
GSM-1900 Network Infrastructure

Melbourne, FL -- AirNet Communications Corporation announced today that it had received a new contract not previously reported, valued at approximately $17 million to supply PCS (Personal Communications Services) wireless infrastructure equipment and services for Message Express Company, a winner in the FCC’s E Block PCS license auction.

Message Express acquired licenses to two Michigan Basic Trading Areas (BTAs) specifically, Battle Creek and Kalamazoo, covering almost 600,000 population. The contract calls for AirNet to provision a complete GSM (Global System for Mobile Communications) Base Station Subsystem, including operations and maintenance center, base station controller, transcoder rate adapter unit and, ultimately, almost 200 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 AirSiteTM backhaul-free base stations.

AirNet’s ability to seamlessly intermix its high capacity and enhanced coverage base station technologies was the key to unlocking the Message Express deal. "We extensively evaluated various technologies and vendors during our selection process," said Bob Fisher, general manager of Message Express. "But AirNet’s AirSite base station with free backhaul made a dramatic improvement to our business plan and the final decision was easy."

"From the beginning, AirNet set out to design, develop and build the most cost effective GSM wireless infrastructure products available," stated Dr. Lee Hamilton, AirNet’s president and chief operating officer. "This latest contract, in the face of heavy competition, indicates that we have the right technical solution to solve the most complex coverage problems. We also happen to have the most aggressive price point on the market in those cases."

"Message Express is yet another example of why AirNet is the leading provider of GSM-1900 infrastructure to the C-F Block licensees," remarked Glenn Ehley, vice president for AirNet. "We have dedicated employees and an organization focused on customer satisfaction. Plus, for cash-flow conscious licensees we are really the only alternative."

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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