For Immediate Release
January 19, 2005

AirNet Communications Deploys New iBSS Technology
iBSS Enables Direct Connectivity of Base Station to MSC Via Internet Protocol

Melbourne, FL, January 19, 2005 - AirNet Communications Corporation (Nasdaq: ANCC - news), the technology leader in software defined base station products for wireless communications, today announced that it sold and shipped AirNetís newest software feature in the fourth quarter to two undisclosed, aerospace and defense OEM resellers. The iBSS™ software feature is a product enhancement for AirNet’s AdaptaCell product line of base stations including the SuperCapacity™ base station incorporating adaptive array technology and the RapidCell™ base station.

An AirNet base station enabled with iBSS software eliminates the need for costly network elements such as the base station controller (BSC) and transcoding and rate adaption unit (TRAU). Through the elimination of these hardware components, AirNetís customers can directly connect to a mobile switching center (MSC) via Internet Protocol over the well-established ďAĒ interface.

“Our business model is built upon providing customers with a flexible product architecture that can be cost-effectively packaged in a variety of different ways to suit their specific purposes,” said Glenn Ehley, president and CEO for AirNet. “The iBSS feature is also a crucial building block for our next generation product line which we plan on unveiling next month.”

“The iBSS technology initiates the transition of our product line from the circuit-switched world to an IP-based backbone,” said Thomas R. Schmutz, vice president of engineering for AirNet. “By distributing processing resources to the base stations, we are improving the scalability of GSM networks while reducing cost and footprint.”

AirNet will unveil its next generation SDR product architecture at the 3GSM World Congress in Cannes, France on February 14 through February 17, 2005. Visit AirNet during 3GSM at Exhibit Stand A23 in Hall 1.

About AirNet

AirNet Communications Corporation is a leader in wireless base stations and other telecommunications equipment that allow service operators to cost-effectively and simultaneously offer high-speed wireless data and voice services to mobile subscribers. AirNet's patented broadband, software-defined AdaptaCell® SuperCapacity™ adaptive array base station solution provides a high-capacity base station with a software upgrade path to high-speed data. The Company's AirSite® Backhaul Free™ base station carries wireless voice and data signals back to the wireline network, eliminating the need for a physical backhaul link, thus reducing operating costs. The Company's RapidCell™ base station provides government and military communications users with up to 96 voice and data channels in a compact, rapidly deployable design capable of processing multiple GSM protocols simultaneously. AirNet has 69 patents issued or filed and has received the coveted World Award for Best Technical Innovation from the GSM Association, representing over 400 operators around the world. More information about AirNet may be obtained by visiting the AirNet Web site at www.airnetcom.com.

For More Information:

Stuart P. Dawley
Investor Relations Officer
Tel: +1 321-953-6780
sdawley@airnetcom.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The statements contained in this press release that are not historical information are forward-looking statements that relate to future events or our future financial performance, including statements regarding our expectations, beliefs, plans, estimates, intentions or strategies for the future. Forward looking statements include statements regarding the negotiation or conclusion of a financing transaction, the financial effects of a corporate restructuring, the transition and evolution to next generation products, and other statements relating to the companyís outlook. All forward-looking statements included in this release are based upon information available to AirNet Communications Corporation as of the date hereof and the Company assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause our actual results to differ materially from those projected. Potential risks and uncertainties include, but are not limited to, risks or uncertainties, that our sales revenue is concentrated around a few large customers; that the companyís new products may not be accepted by the market, and that the company may not be able to continue to operate as a going concern in the absence of investment capital. These and other risks are discussed in Company filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2003.

AirNet(R), AdaptaCell(R), and AirSite(R) are registered trademarks with the U.S. Patent and Trademark Office. Super Capacity™, TripCap™, Backhaul Free™, AdaptaSite™, iBSS™ and RapidCell™ are trademarks of AirNet. Other names are registered trademarks or trademarks of their respective holders.


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