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Worldwide Wireless Networks Announces 2nd Quarter Financial Results And Provides



ORANGE, Calif., Aug. 16 /PRNewswire/ -- Worldwide Wireless Networks Inc.
(OTC Bulletin Board: WWWN), announced financial results for its first fiscal
six months, ended June 30, 2001. The company also detailed its restructuring
and marketing progress.
For the six months ended June 30, 2001, the Company reported revenues of
$1,052,696 compared to $1,674,994 for the first six months of 2000. This
decline in revenue is attributable to on-going restructuring efforts that
resulted in the divestiture of unprofitable customers, a reduced focus on less
profitable equipment sales and an increase in customer attrition as a result
of the downturn in the economy.
The net loss for the second quarter 2001 was $626,976 as compared to a net
loss of $815,615 for the second quarter of 2000. Contributing to the decrease
in the loss as compared to the same period a year ago, was a 50% reduction in
sales and marketing costs as the company refocused it's marketing efforts to
it's core product and a 19% reduction in operational expenses that were
reduced by increasing operating efficiencies.
In another move to reduce costs and increase margins, Worldwide recently
signed an agreement to add another Internet backbone provider that will
function as the primary connection for Worldwide's customers. This new
contract will reduce Worldwide's cost-of-sales for bandwidth expenses by
approximately 60%.
Jerry Collazo, President and Acting CEO provided the following comments on
a number of issues regarding the status and direction of the company:

Current Company Status
"Our company is still challenged on a few fronts but we are fundamentally
stronger than we were last fall. A substantial reduction in our operating
costs resulted in a 61% decrease in operational losses for this past six
months as compared to the same period in 2000. This was accomplished through
a combination of restructuring operations and bringing in higher margin
revenues. Our sales team is continuing progress in bringing in business
accounts that are typically between 384Kbps to 1.5Mbps. Our focus is
expanding to capture higher bandwidth customers to capitalize on our wireless
technology that can deliver speeds up to 155Mbps. Our sales team is also
focused on establishing more alliance/referral partners in order to cost
effectively expand our marketing and sales efforts. Also, we have been very
aggressive in signing up 'e-buildings' which provide one large Internet
connection to a building and split it among multiple tenants. In addition, we
are also targeting large public sector/private sector accounts to leverage our
planning and design capabilities with a range of wireless services that we
have unique experience with.
"Even though the economy is causing us to incur a higher churn rate than
expected due to many of our dot.com and small to mid size customers closing
their doors, our goal of reaching P&L cash flow break-even this year is still
a possibility. Upon cash flow break-even, it will be much easier to attract
expansion capital and revisit markets that we have put on hold, like Los
Angeles. Instead of trying to expand right now, we are leveraging our
existing Orange County infrastructure to bring in additional revenues without
expending additional capital for new network build-outs. By concentrating our
efforts in Orange County we have the added benefit of increasing our existing
market presence and can create a stronger barrier to entry for competitors who
might consider this market. With the dot.com crash the capital markets are no
longer interested in market share at any cost. This is the basis of our
strategy -- to create value by growing profitably and to sustain value by
developing sound fundamentals. In line with this strategy, our focus this
year has been to eliminate revenues that were unprofitable and showed no signs
of ever being profitable. Also eliminated were revenues that were not part of
our core business. In addition, we have been restructuring operations to
eliminate unnecessary expenditures and streamline operations to make them more
cost effective. Finally, when the dust settles, we are a service
organization. Most of our recent efforts have been in developing world-class
capabilities to provide the most reliable and dependable Internet connectivity
service available for businesses of all sizes. And while we are a small
company and have all the restrictions of a small company, we also have all the
strengths of a small company -- fast response time, easier access to decision
makers and more flexibility with regards to internal issues and customer
interface."

Market Environment
"Many Telco companies closing their doors due to flawed business models;
but we have been providing wireless Internet service for four years and have a
profit-based business model that will work. We have seen WinStar, Teligent,
Advanced Radio Telecom and others come into this market and we are now seeing
them fail. This industry and economic storm provides opportunities for us as
well as challenges. The collapse of the independent DSL industry with
Northpointe gone, Rhythms chapter 11, Covad filing chapter 11 and many other
industry woes is providing new business opportunities for us with customers
that are now reluctant to depend on DSL as a primary service. But the DSL
collapse is also providing challenges for us in that many businesses are now
reluctant to accept service from a non-Bell provider. In addition to problems
in the DSL industry, the general economic climate has created opportunities by
inducing prospects from one, two and three years ago to call us to reduce
their T-1 costs. But on the flip side, the economic climate is making it more
difficult for our current customer base to pay their connectivity bills."

Current and Future Projects
"Some of our past projects are performing well and are providing on-going
revenue through service contracts and expansion of services. One project that
has created a lot of interest was a project last fall that we participated in
with Verizon and Marconi: the bid for the County of Orange. Even though
PacBell won the project, the County has been so pleased with our service that
they encouraged PacBell to use us as the wireless solution and Marconi has now
become a wireless customer. We are also continuing our project proposal to
provide connectivity with the City of Ontario. Unfortunately, such large
proposals have long lead times and are subject to competitive bidding in the
open market. The expertise we have developed with the County of Orange is
allowing us to prepare a competitive bid for the City of Ontario as well as
other municipalities."

Volumes, Share Price and Equity Line
"Even though we are reluctant to use our equity line, we are glad that it
is available as some of our other financing options have become very limited
by the tightening of the financial markets. Management is well aware of the
effects of dilution and is limiting the utilization of the equity line solely
to provide cash for current operations. We are actively exploring financing
options to carry us to profitability and we will choose the best available
means to fund the company. Many people are asking where our large trading
volumes and recent share price increase are coming from. Some of the volume
has come from the exercise of our equity line. Some has come from conversions
of our debt instruments, but as stated in a prior release, we cannot speculate
as to where all the activity is coming from. We are actively using a
technology that many believe has a bright future and we appreciate
shareholders looking at us as a long-term opportunity."

About Worldwide Wireless Networks
Worldwide Wireless Networks is a data-centric wireless communications
company headquartered in Orange, California. The Company specializes in
high-speed, broadband Internet access using an owned wireless network. Other
products and services include frame relay, collocation services and network
consulting. The Company serves all sizes of private and public sector
accounts. For more information, visit them on the Web at www.wwwn.com.

The statements made in this release, which are not historical facts,
contain certain forward-looking statements concerning potential developments
affecting the business, prospects, financial condition and other aspects of
the company to which this release pertains. The actual results of the
specific items described in this release, and the company's operations
generally, may differ materially from what is projected in such
forward-looking statements. Although such statements are based upon the best
judgments of management of the company as of the date of this release,
significant deviations in magnitude, timing and other factors may result from
business risks and uncertainties including, without limitation, the company's
dependence on third parties, market conditions, technical factors, the
availability of outside capital and receipt of revenues, and other factors,
many of which are beyond the control of the company. The company disclaims
any obligation to update information contained in any forward-looking
statement.

Contact: Curt Collier, Worldwide Wireless Networks, Inc.
([e-mail]) 714-937-5500.

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SOURCE Worldwide Wireless Networks, Inc.

/CONTACT: Curt Collier of Worldwide Wireless Networks, Inc.,[phone],
[e-mail]/

/Web site: http://www.wwwn.com /

Aug-16-2001 13:09 GMT
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