Exhibit
      99.1





**For
      Further Information Contact:**


David
      Renauld


Vice
      President, Corporate Affairs




(413)
      584-1425







**FOR
      IMMEDIATE RELEASE**








**TERABEAM
      PROVIDES UPDATED GUIDANCE**


**CONCERNING
      FIRST QUARTER 2006 FINANCIAL RESULTS**





**Company
      Exploring Strategic Alternatives for its Ricochet®
Business**





**SAN
      JOSE, CA, April 12, 2006** -
      Terabeam, Inc. (NASDAQ:TRBM), a leading developer and supplier of broadband
      wireless solutions, today provided updated guidance for its expected financial
      results for the first quarter 2006. The company currently believes that revenue
      for the first quarter will be between $18.0 million and $19.0 million. In
      addition, the company currently believes that its net loss for the quarter
      will
      be between $2.5 million and $4.5 million.





The
      updated guidance contained in this press release is based on information
      currently available to the company and is subject to change based on the
      completion of the company’s financial statements and the related review of its
      quarter-end financial results. The company expects to release its first quarter
      2006 financial results in early May 2006.





Exploration
      of Alternatives regarding Ricochet Business





The
      company also announced that it has retained Franklin Court Partners, LLC to
      explore a variety of possible strategic alternatives for its Ricochet® business.
      Given the recent interests that have been expressed in Ricochet, the company
      believes that now is an appropriate time to consider a wide variety of
      alternatives. These alternatives may include the acquisition of Ricochet, an
      investment in Ricochet, strategic relationships with Ricochet, sale of some
      or
      all of the assets of Ricochet, and a number of other possible alternatives.
      Interested parties may contact Scott C. Chandler, Managing Partner of Franklin
      Court Partners, at 303-888-0132.





There
      can
      be no assurance whatsoever that any transaction or other corporate action
      regarding Ricochet will result from this exploration of alternatives. Further,
      there can be no assurance whatsoever concerning the type, form, structure,
      nature, results, timing, or terms and conditions of any such potential action,
      even if such an action does result from this exploration. The company does
      not
      intend to make any additional comments regarding this matter unless and until
      a
      definitive transaction agreement has been reached, the exploration of
      alternatives has been terminated, or there are other definitive developments
      warranting further disclosure.


Terabeam
          Provides Updated Guidance Concerning
 First
          Quarter 2006 Financial Results
 April
          12,
          2006
 Page


**About
      Terabeam**


Terabeam,
      Inc. has two primary subsidiaries Proxim Wireless Corporation and Ricochet
      Networks, Inc. Proxim Wireless Corporation is a global leader in providing
      Wi-Fi
      and other broadband wireless solutions to meet the performance, scalability,
      and
      security requirements of enterprises, government, and service providers.
      Ricochet Networks, Inc. is a leading portable Wireless Internet Service Provider
      (WISP) with operational markets in Denver and Aurora, Colorado and San Diego,
      California. Additional information about the company can be found at the
      company's website located at http://www.terabeam.com or
      by
      contacting the company by telephone at 413-584-1425 or by email at IR@terabeam.com .





**Safe
      Harbor Statement**


*Statements
      in this press release that are not statements of historical facts are
      forward-looking statements that involve risks, uncertainties, and assumptions.
      Terabeam’s actual results may differ materially from the results anticipated in
      these forward-looking statements. The forward-looking statements involve risks
      and uncertainties that could contribute to such differences including those
      relating to and arising from the completion of Terabeam’s financial statements
      for the quarter ended March 31, 2006 and related review of those financial
      statements; the impact of required stock option expense; our ability to identify
      desirable strategic alternatives for our Ricochet business, as well as our
      ability to execute such alternatives or the transactions associated with such
      alternatives; the level of interest of third parties in pursuing possible
      strategic transactions relating to our Ricochet business; our desire and ability
      (or lack thereof) to continue to explore possible strategic alternatives and
      opportunities relating to our Ricochet business; the desire and ability (or
      lack
      thereof) of us and any relevant third parties to reach mutually acceptable
      definitive documentation to effect a possible strategic transaction and, if
      that
      occurs, whether the conditions to closing would then be satisfied; the time
      and
      costs required to explore and investigate possible transactions and other
      corporate actions; management and board interest in and distraction due to
      exploring and investigating possible transactions and other corporate actions;
      reactions, either positive or negative, of investors, competitors, customers,
      employees, and others to our exploring possible strategic alternatives and
      opportunities relating to our Ricochet business and to any specific strategic
      alternative or opportunity selected by us; difficulties in predicting Terabeam’s
      future financial performance; the intense competition in our industries and
      resulting impacts on our pricing, gross margins, and general financial
      performance; difficulties or delays in developing and supplying new products
      with the contemplated or desired features, performance, compliances,
      certifications, cost, price, and other characteristics; Terabeam’s recent
      acquisition of Proxim Corporation’s operations, assets, and relationships; and
      the impacts and effects of any other strategic transactions Terabeam may
      evaluate or consummate. Further information on these and other factors that
      could affect Terabeam’s actual results is and will be included in filings made
      by Terabeam from time to time with the Securities and Exchange Commission and
      in
      its other public statements.*