|   | · | Sales      Increased by 47% Over Q108 |
|--------|--------|---------------------------------------|

|   | · | Raised $3M      and Exploring Strategic Alternative for the Harmonix Division to Support      Core Business Growth |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | Narrowed      Non-GAAP Loss to $0.1M from $4.1M inQ108 |
|--------|--------|--------------------------------------------------------|

----

|   | · | The      introduction of Proxim’s TsunamiTM MP.11 HS      (High Security) line of products, the company’s ultra-secure      broadband wireless solution for wireless video, data connectivity, VoIP      and mobility |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      introduction of Proxim’s Lynx®.G5 family      of products, providing carriers, utilities and enterprises advanced      security and flexibility for high-performance voice and data      backhaul |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Multi-technology      deployment of Proxim’s Tsunami MP.16      and Tsunami MP.11 products by Televersa to      provide WiMAX service to 2.5 million people over 12,400 square miles in      Germany |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Multi-technology      deployment of Proxim’s Tsunami MP.11 and ORiNOCO®      AP-4000 MR-LR equipment to provide Wi-Fi network coverage for over      80,000 residents in Taiwan’s Kinmen      County |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Multi-technology      deployment of Proxim’s Tsunami MP.11 and ORiNOCO AP-4000 products to      provide Wi-Fi and WiMAX service to the city of Portland,      Oregon as a paid alternative for the now defunct MetroFi      network |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      complete end-to-end (Wi-Fi, WiMAX and Point-to-Point) deployment of      Proxim’s Tsunami MP.16, Tsunami MP.11, Tsunami.GX and      ORiNOCO AP-4000 MR-LR products to provide IPTV, VoIP and data services to      the Taiwanese market via CTV      Infotech |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      string of product awards, including receipt of Network Products Guide’s      “2008 Product Innovation Award” for our QuickBridge      60250 point-to-point wireless bridge, Internet Telephony’s      “2008 WiMAX Distinction Award” for our MeshMax 11      product, and Network      Products Guide’s “2008 Best Product & Services” award for our      Tsunami MP.11 HS product |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Azlan,      the central supply chain operation of Tech Data’s enterprise networking      and mid-range systems business, announced a European-wide agreement to      distribute Proxim’s entire end-to-end wireless portfolio throughout 16      European countries |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Opening      of a new technical services and support center in Hyderabad, India to      provide optional 24/7 technical support for customers across the APAC and      EMEA regions |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                                                                                              |   | 30-Jun      |    |   | December      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|-------------------|--------|
|                                                                                                                                              |   | 2008        |    |   | 2007              |   |
| Assets                                                                                                                                            |   | (unaudited) |    |   |              |   |
| Current      assets:                                                                                                                              |   |        |    |   |              |   |
| Cash      and cash equivalents                                                                                                                    |   | $           | 4,884   |   |              | $      | 6,329 |   |
| Accounts      receivable, net                                                                                                                     |   |        | 5,067   |   |              |   | 9,326 |   |
| Inventory                                                                                                                                         |   |        | 4,828   |   |              |   | 5,753 |   |
| Prepaid      expenses                                                                                                                             |   |        | 1,159   |   |              |   | 1,029 |   |
| Assets      held for sale                                                                                                                         |   |        | 2,293   |   |              |   | 2,085 |   |
| Total      current assets                                                                                                                         |   |        | 18,231  |   |              |   | 24,522 |   |
| Property      and equipment, net                                                                                                                  |   |        | 2,547   |   |              |   | 2,538 |   |
| Other      Assets:                                                                                                                                |   |        |    |   |              |   |   |   |
| Restricted      cash                                                                                                                              |   |        | 77      |   |              |   | 76 |   |
| Intangible      assets, net                                                                                                                       |   |        | 7,439   |   |              |   | 8,400 |   |
| Deposits      and prepaid expenses                                                                                                                |   |        | 489     |   |              |   | 239 |   |
| Total      other assets                                                                                                                           |   |        | 8,005   |   |              |   | 8,715 |   |
| Assets      held for sale                                                                                                                         |   |        | 511     |   |              |   | 635 |   |
| Total      assets                                                                                                                                 |   | $           | 29,294  |   |              | $      | 36,410 |   |
| Liabilities      and Stockholders’ Equity                                                                                                   |   |        |    |   |              |   |   |   |
| Current      liabilities:                                                                                                                         |   |        |    |   |              |   |   |   |
| Accounts      payable and accrued expenses                                                                                                        |   | $           | 10,312  |   |              | $      | 12,752 |   |
| Line      of credit payable                                                                                                                       |   |        | 3,000   |   |              | -      |   |
| Deferred      revenue                                                                                                                             |   |        | 2,840   |   |              |   | 4,001 |   |
| License      agreement payable - current maturities                                                                                               |   |        | 851     |   |              |   | 1,065 |   |
| Total      current liabilities                                                                                                                    |   |        | 17,003  |   |              |   | 17,818 |   |
| License      agreement payable, net of current maturities                                                                                         |   |        | 756     |   |              |   | 1,023 |   |
| Long      term liabilities of discontinued operations held for sale                                                                               |   |        | 153     |   |              |   | 232 |   |
| Total      liabilities                                                                                                                            |   |        | 17,912  |   |              |   | 19,073 |   |
| Commitments      and contingencies                                                                                                                |   |        |    |   |              |   |   |   |
| Stockholders’      Equity                                                                                                                   |   |        |    |   |              |   |   |   |
| Preferred      stock, $0.01 par value; 4,500,000 shares authorized, none issued at June      30, 2008 and December 31, 2007                       |   |        | -       |   |              |   | - |   |
| Common      stock, $0.01 par value, 100,0000,000 shares authorized, 23,519,069 issued      and outstanding at June 30, 2008 and December 31, 2007 |   |        | 235     |   |              |   | 235 |   |
| Additional      paid-in capital                                                                                                                   |   |        | 64,132  |   |              |   | 63,451 |   |
| Retained      earnings  (accumulated deficit)                                                                                           |   |        | (52,985 | )      |              |   | (46,349 | ) |
| Total      stockholders’ equity                                                                                                             |   |        | 11,382  |   |              |   | 17,337 |   |
| Total      liabilities and stockholders’ equity                                                                                             |   | $           | 29,294  |   |              | $      | 36,410 |   |

----

|  PROXIM      WIRELESS CORPORATION                                                                         |          |
|----------------------------------------------------------------------------------------------------------------|---------------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                                                                     |          |
| (in      thousands, except per share data)                                                                     |          |
|        (unaudited)                                                                                        |
|                                                                                                           |          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                           |          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                           |          | Three      Months Ended |   |   | Six      Months Ended |   |
|                                                                                                           | June      30, |   |   | June      30, |   |
|                                                                                                           |          | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Revenues                                                                                                       |          | $ | 15,088 |   |   | $ | 16,874 |   |   | $ | 25,331 |   |   | $ | 32,273 |   |
| Cost      of goods sold                                                                                        |          |   | 7,831 |   |   |   | 9,296 |   |   |   | 13,752 |   |   |   | 17,568 |   |
| Gross      profit                                                                                              |          |   | 7,257 |   |   |   | 7,578 |   |   |   | 11,579 |   |   |   | 14,705 |   |
| Operating      expenses:                                                                                       |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      costs                                                                                             |          |   | 5,137 |   |   |   | 5,094 |   |   |   | 10,164 |   |   |   | 9,748 |   |
| Restructuring      Charges                                                                                     |          |   | 0 |   |   |   | 91 |   |   |   | 0 |   |   |   | 91 |   |
| General      and administrative                                                                                |          |   | 3,089 |   |   |   | 2,884 |   |   |   | 6,500 |   |   |   | 5,891 |   |
| Research      and development                                                                                  |          |   | 1,082 |   |   |   | 2,009 |   |   |   | 2,127 |   |   |   | 4,152 |   |
| Total      operating expenses                                                                                  |          |   | 9,308 |   |   |   | 10,078 |   |   |   | 18,791 |   |   |   | 19,882 |   |
| Operating      loss                                                                                            |          |   | (2,051 | ) |   |   | (2,500 | ) |   |   | (7,212 | ) |   |   | (5,177 | ) |
| Other      income (expenses):                                                                                  |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                           |          |   | 7 |   |   |   | 28 |   |   |   | 21 |   |   |   | 72 |   |
| Interest      expense                                                                                          |          |   | (75 | ) |   |   | (34 | ) |   |   | (114 | ) |   |   | (68 | ) |
| Other      income (loss)                                                                                       |          |   | 745 |   |   |   | 2576 |   |   |   | 664 |   |   |   | 2600 |   |
| Realized      gain/loss from AFS securities                                                                    |          |   | 0 |   |   |   | 0 |   |   |   | (59 | ) |   |   | 22 |   |
| Total      other income (expenses)                                                                             |          |   | 677 |   |   |   | 2,570 |   |   |   | 512 |   |   |   | 2,626 |   |
| Loss      before income taxes                                                                                  |          |   | (1,374 | ) |   |   | 70 |   |   |   | (6,700 | ) |   |   | (2,551 | ) |
| Benefit      (provision) for income taxes                                                                      |          |   | (41 | ) |   |   | (45 | ) |   |   | (112 | ) |   |   | (68 | ) |
| Loss      from continuing operations                                                                           |          |   | (1,415 | ) |   |   | 25 |   |   |   | (6,812 | ) |   |   | (2,619 | ) |
| Loss/income      from discontinued operations (loss)                                                           |          |   | 51 |   |   |   | (364 | ) |   |   | 176 |   |   |   | (706 | ) |
| Net      income (loss)                                                                                         |          |   | (1,364 | ) |   |   | (339 | ) |   |   | (6,636 | ) |   |   | (3,325 | ) |
| Weighted      average number of shares -basic and diluted used in computing net earnings      (loss) per share |          |   | 23,519 |   |   |   | 21,554 |   |   |   | 23,519 |   |   |   | 21,554 |   |
|                                                                                                           |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net earnings (loss) per share:                                                          |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                                     |          | $ | (0.06 | ) |   | $ | 0.00 |   |   | $ | (0.29 | ) |   | $ | (0.12 | ) |
| Discontinued      operations                                                                                   |          | $ | 0.00 |   |   | $ | (0.02 | ) |   | $ | 0.01 |   |   | $ | (0.03 | ) |
| Total                                                                                                          |          | $ | (0.06 | ) |   | $ | (0.02 | ) |   | $ | (0.28 | ) |   | $ | (0.15 | ) |

----

|                                                                                                            |   | RECONCILIATION      OF GAAP TO NON-GAAP FINANCIAL RESULTS |   |   |                    |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------|--------|
|                                                                                                            |   |                                                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                            |   | Three      Months Ended                                   |   |   | Three      Months Ended |   |
|                                                                                                            |   | 30-Jun-08                                                 |   |   | 31-Mar-08               |   |
|                                                                                                            |   | GAAP                                                      |   |   | Adjustments             |   |   | Non-GAAP |   |   | GAAP |   |   | Adjustments |   |   | Non-GAAP |   |
| Revenues                                                                                              |   | $                                                         | 15,088 |   |                    |   |   |   | $ | 15,088 |   |   | $ | 10,243 |   |   |   |   |   | $ | 10,243 |   |
| Cost      of goods sold                                                                                    |   |                                                      | 7,831  |   |                    |   | (143)(a)      (134)(c) |   |   |   | 7,554 |   |   |   | 5,921 |   |   |   | (145)(a)      (129)(c) |   |   |   | 5,647 |   |
|                                                                                                            |   |                                                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                               |   |                                                      | 7,257  |   |                    |   | 277 |   |   |   | 7,534 |   |   |   | 4,322 |   |   |   | 274 |   |   |   | 4,596 |   |
| Operating      expenses:                                                                                        |   |                                                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      costs                                                                                              |   |                                                      | 5,137  |   |                    |   | (9)(a)(88)(c) |   |   |   | 5,040 |   |   |   | 5,027 |   |   |   | (10)(a)(78)(c) |   |   |   | 4,939 |   |
| General      and administrative                                                                                 |   |                                                      | 3,089  |   |                    |   | (87)(a)(481)(b)(102)(c) |   |   |   | 2,419 |   |   |   | 3,411 |   |   |   | (100)(a)(481)(b)(83)(c) |   |   |   | 2,747 |   |
| Research      and development                                                                                   |   |                                                      | 1,082  |   |                    |   | (117)(a)(38)(c) |   |   |   | 927 |   |   |   | 1,044 |   |   |   | (119)(a)(30)(c) |   |   |   | 895 |   |
| Total      operating expenses                                                                                   |   |                                                      | 9,308  |   |                    |   | 922 |   |   |   | 8,386 |   |   |   | 9,482 |   |   |   | 901 |   |   |   | 8,581 |   |
| Operating      profit (loss)                                                                                    |   |                                                      | (2,051 | )      |                    |   | 1,199 |   |   |   | (852 | ) |   |   | (5,160 | ) |   |   | 1,175 |   |   |   | (3,985 | ) |
| Other      income (expenses):                                                                                   |   |                                                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                            |   |                                                      | 7      |   |                    |   |   |   |   |   | 7 |   |   |   | 13 |   |   |   |   |   |   |   | 13 |   |
| Interest      expense                                                                                           |   |                                                      | (75    | )      |                    |   |   |   |   |   | (75 | ) |   |   | (39 | ) |   |   |   |   |   |   | (39 | ) |
| Other      income (loss)                                                                                        |   |                                                      | 745    |   |                    |   |   |   |   |   | 745 |   |   |   | (139 | ) |   |   |   |   |   |   | (139 | ) |
| Total      other income (expenses)                                                                              |   |                                                      | 677    |   |                    |   |   |   |   |   | 677 |   |   |   | (165 | ) |   |   |   |   |   |   | (165 | ) |
| Loss      before income taxes                                                                                   |   |                                                      | (1,374 | )      |                    |   | 1,199 |   |   |   | (175 | ) |   |   | (5,325 | ) |   |   | 1,175 |   |   |   | (4,150 | ) |
| Benefit      (provision) for income taxes                                                                       |   |                                                      | (41    | )      |                    |   |   |   |   |   | (41 | ) |   |   | (72 | ) |   |   |   |   |   |   | (72 | ) |
| Loss      from continuing operations                                                                            |   | $                                                         | (1,415 | )      |                    | $      | 1,199 |   |   | $ | (216 | ) |   | $ | (5,397 | ) |   | $ | 1,175 |   |   | $ | (4,222 | ) |
| Gain      (loss) from discontinued operations                                                                   |   | $                                                         | 51     |   |                    |   | 47(b) |   |   | $ | 98 |   |   | $ | 125 |   |   |   | 47(b) |   |   | $ | 172 |   |
| Net      income (loss)                                                                                          |   | $                                                         | (1,364 | )      |                    | $      | 1,246 |   |   | $ | (118 | ) |   | $ | (5,272 | ) |   | $ | 1,222 |   |   | $ | (4,050 | ) |
| Weighted      average number of shares - basic and diluted used in computing net      earnings (loss) per share |   |                                                      | 23,519 |   |                    |   |   |   |   |   | 23,519 |   |   |   | 23,519 |   |   |   |   |   |   |   | 23,519 |   |
| Basic      and diluted net earnings (loss) per share:                                                           |   |                                                      |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                                      |   | $                                                         | (0.06  | )      |                    |   |   |   |   | $ | (0.01 | ) |   | $ | (0.22 | ) |   |   |   |   |   | $ | (0.17 | ) |
| Discontinued      operations                                                                                    |   | $                                                         | 0.00   |   |                    |   |   |   |   | $ | 0.00 |   |   | $ | (0.0 | ) |   |   |   |   |   | $ | (0.0 | ) |
| Total                                                                                                           |   | $                                                         | (0.06  | )      |                    |   |   |   |   | $ | (0.01 | ) |   | $ | (0.22 | ) |   |   |   |   |   | $ | (0.17 | ) |

|   | (a) | The      effect of depreciation of fixedassets |
|--------|-----|------------------------------------------------|

|   | (b) | The      effect of amortization of intangibleassets |
|--------|-----|-----------------------------------------------------|

|   | (c) | The      effect of stock based compensation. The company adopted the provisions of      Statement of Financial Accounting Standards No. 123R, “Share-Based      Payment” on January 1, 2006 using the modified-prospective transition      method |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|