Exhibit
      99.1





**For
      Further Information Contact:**


Bert
      Williams


Vice
      President, Marketing and Investor Relations


(408)
      731-2610








**TERABEAM
      LAYS FOUNDATION FOR PROFITABLE GROWTH**





*Company
      Predicts Increased Revenue and Implements Cost-Saving Measures*





**San
      Jose, CA, July 24, 2007**– Terabeam, Inc. (NASDAQ:TRBM), a leader in
      core-to-client solutions for broadband municipal wireless networks, today
      announced preliminary financial results for the second quarter of 2007 and
      cost-saving measures which, together with the recently announced private
      investment, lay the foundation for profitable growth in the future.





Terabeam
      announced that it expects revenue as determined by its historical revenue
      recognition policy for the recently ended second quarter of 2007 to be
      approximately $19 million, a significant increase from the revenue of $17.7
      million in the first quarter of 2007. Key to this revenue growth was an increase
      in the company’s broadband wireless access product line sales.  The
      revenue expectations contained in this press release are based on information
      currently available to the company and are 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
      second quarter 2007 financial results in August 2007.





Terabeam
      has implemented cost savings initiatives that it anticipates will result in
      future reductions in operating expenses and costs of goods sold. As part of
      these initiatives, the company has also restructured its engineering operations,
      shifting additional research and development activities to its Hyderabad, India,
      facility. The company expects these changes to significantly lower its GAAP
      and
      cash flow break even points.





“The
      combination of our recently completed financing and our significant cost-savings
      measures create a firm foundation upon which Terabeam can build profitable
      growth,” said Robert Fitzgerald, Terabeam’s Chief Executive Officer. “We are
      encouraged by the increase in revenue we saw from our first to our second
      quarter, especially for our briskly selling broadband wireless access products.
      With our cost-saving measures in place, continuing our revenue growth trajectory
      is the key to generating future profitability.”





**About
      Terabeam**


Terabeam,
      Inc. has two primary subsidiaries Proxim Wireless Corporation and Ricochet
      Networks, Inc.  Proxim Wireless Corporation is a leader in
      core-to-client solutions for broadband municipal wireless
      networks.  Ricochet Networks, Inc. is a leading portable Wireless
      Internet Service Provider (WISP) with its primary operational market in Denver,
      Colorado.  Additional information about the company can be found at
      the company’s website located at www.terabeam.com or by contacting the
      company by telephone at 408-731-2610 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 June 30, 2007 and
      related review of those financial statements; possible impacts of any changes
      in
      accounting procedures followed by the company in preparing its financial
      statements; 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, which difficulties may be exacerbated by our recent cost
      savings initiatives; and the reactions, positive or negative, of customers,
      investors, employees, competitors, and others to the cost savings initiatives
      described in this press release and their ramifications.  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.*