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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Interesting announcement today, I always wondered what
happened to Terrabeam and all of the cash that Lucent pumped into them….I
guess we know.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Cheers,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Dean<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
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font-family:Arial'><o:p> </o:p></span></font></p>
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font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
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font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>July
20, 2005 <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Dear
Proxim Customer: <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>We’re
contacting you with breaking news – Terabeam Wireless, <a
href="http://postsnet.com/r.html?c=515168&r=514532&t=393492468&l=1&d=86222704&u=http%3a%2f%2fwww%2eterabeam%2ecom&g=0&f=-1"
title="http://postsnet.com/r.html?c=515168&r=514532&t=393492468&l=1&d=86222704&u=http://www.terabeam.com&g=0&f=-1">www.terabeam.com</a>,
a leading provider of long-range, license-free wireless data equipment, is
acquiring substantially all of the assets of Proxim Corporation. <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Just
over a month ago we announced the intent of Moseley Associates to acquire
Proxim’s assets as well as its domestic and foreign operations. At the
time we indicated that the final acquisition would be completed after a bidding
process. Although we did not anticipate another company stepping in with a
higher offer, we are excited to announce that the higher bidder and future
parent is Terabeam. <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Terabeam
is a publicly-held company that is very well-respected in the wireless space
and well-aligned with Proxim’s long-range objectives. Terabeam is
acquiring all of the assets of Proxim and will continue to deliver and support
our <st1:place w:st="on">ORiNOCO</st1:place>, Tsunami and Lynx product lines. <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Rob
Fitzgerald, CEO of Terabeam Wireless, has stated his intent to move forward
quickly to close on the acquisition and, when practical, plans to move Terabeam
headquarters to the Proxim San Jose facility. Combining our product lines, our
talent and technology will allow us to continue to focus on the needs our
combined customers and to grow the overall adoption of wireless networking. <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>We
will continue to update you as Terabeam acquisition of Proxim is finalized. We
value our relationships with all our customers and we greatly appreciate your
loyalty and understanding. <o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Sincerely,
<o:p></o:p></span></font></p>
<p><font size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>Kevin
Duffy<br>
President and CEO<br>
Proxim Corporation<br>
<a href="mailto:kduffy@proxim.com" title="mailto:kduffy@proxim.com">kduffy@proxim.com</a><o:p></o:p></span></font></p>
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font-family:Arial'><o:p> </o:p></span></font></p>
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