**Exhibit
      99.2**






**For
      Further Information Contact:**


Bert
      Williams


Vice
      President, Marketing and Investor Relations


(408)
      731-2610








**TERABEAM
      COMPLETES $7.5 MILLION PRIVATE PLACEMENT**





**San
      Jose, CA, July 24, 2007**– Terabeam, Inc. (NASDAQ:TRBM), a leader in
      core-to-client solutions for broadband municipal wireless networks, today
      announced that it has completed a private placement of its common stock raising
      proceeds of approximately $7,500,000.  Terabeam issued 4,300,000
      shares of its common stock at $1.75 per share and warrants to purchase an
      aggregate of 2,150,000 shares of its common stock at an exercise price of $2.45
      per share.  The net proceeds of the sale of the common stock and the
      warrants are to be used for working capital and general corporate
      purposes.





The
      securities issued in this private placement have not been registered under
      the
      Securities Act of 1933, as amended, and may not be offered or sold in the United
      States absent registration under the Securities Act and applicable state
      securities laws or an applicable exemption from those registration
      requirements.  Terabeam has agreed to file a registration statement
      with the Securities and Exchange Commission to register the resale of the shares
      of common stock issued and the shares of common stock issuable upon the exercise
      of the warrants sold in this private placement.  Terabeam will file a
      Form 8-K with the Securities and Exchange Commission shortly that will contain
      additional information about this transaction.




This
      press release shall not constitute an offer to sell or the solicitation of
      an
      offer to buy, nor shall there be any sale of these securities in any state
      in
      which such offer, solicitation or sale, would be unlawful prior to the
      registration or qualification under the securities laws of any such
      state.





**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 dilution
      resulting from the stock sale and warrant issuance described in this press
      release; possible stagnation and decline in the price of Terabeam’s common stock
      as a result of these transactions; and the reactions, positive or negative,
      of
      customers, investors, employees, competitors, and others to the stock sale
      and
      warrant issuance 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.*