----

|   | · | Proxim      Wireless sold substantially all assets of the Harmonix Divison of its      Terabeam Corporation subsidiary to Renaissance Electronics Corporation for      approximately $5.3 million grossproceeds. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Proxim’s      ORiNOCO® AP-4000      WLAN solutions were deployed to provide Wi-Fi connectivity for the      Dutch Olympic team at the Beijing 2008 Olympic  Games. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stephouse      Networks, a Portland, OR-based ISP, selected Proxim’s TsunamiTM MP.11      and ORiNOCO AP-4000 products to provide WiMAX and Wi-Fi service in      downtown Portland. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CTV      Infotech, a subsidiary of Chinese Television Company, Ltd., selected      Proxim's Tsunami MP.11 and Tsunami MP.16      point-to-multipoint products, Tsunami®.GX      point-to-point products, and ORiNOCO AP-4000 access point equipment      to deliver IPTV service to the Taiwanesemarket. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | NVIDIA      selected Proxim’s QuickBridge 60250      products to provide the wireless backhaul for all live streaming      video throughout its NVISION 08 event in San  Jose. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Proxim      announced the availability of its GigaLink family of carrier-class      point-to-point radios and its QuickBridge 60250 wireless bridges in the      Nordic Region. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| PROXIM      WIRELESS CORPORATION                                                                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                                                                                     |   |
| (in      thousands, except share data)                                                                                                               |   |
|                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                 |   | September      30, |   |   | Dec      31, |   |
|                                                                                                                                                 |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                 |   | (unaudited) |   |   |   |   |
| Assets                                                                                                                                               |   |   |   |   |   |   |
| Current      assets:                                                                                                                                 |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                                       |   | $ | 7,688 |   |   | $ | 6,329 |   |
| Accounts      receivable, net                                                                                                                        |   |   | 4,940 |   |   |   | 9,326 |   |
| Inventory                                                                                                                                            |   |   | 4,888 |   |   |   | 5,753 |   |
| Prepaid      expenses                                                                                                                                |   |   | 1,866 |   |   |   | 1,029 |   |
|   Assets      held for sale                                                                                                                |   |   | - |   |   |   | 2,085 |   |
| Total      current assets                                                                                                                            |   |   | 19,382 |   |   |   | 24,522 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Property      and equipment, net                                                                                                                     |   |   | 2,453 |   |   |   | 2,532 |   |
| Other      Assets:                                                                                                                                   |   |   |   |   |   |   |   |   |
| Restricted      cash                                                                                                                                 |   |   | 77 |   |   |   | 76 |   |
| Intangible      assets, net                                                                                                                          |   |   | 6,959 |   |   |   | 8,542 |   |
| Deposits      and prepaid expenses                                                                                                                   |   |   | 457 |   |   |   | 239 |   |
| Total      other assets                                                                                                                              |   |   | 7,493 |   |   |   | 8,857 |   |
| Assets      held for sale                                                                                                                            |   |   | - |   |   |   | 499 |   |
| Total      assets                                                                                                                                    |   | $ | 29,328 |   |   | $ | 36,410 |   |
| Liabilities      and Stockholders’ Equity                                                                                                      |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                                                                            |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued expenses                                                                                                           |   | $ | 11,117 |   |   | $ | 12,752 |   |
| Line      of credit payable                                                                                                                          |   |   | 1,500 |   |   |   | - |   |
| Deferred      revenue                                                                                                                                |   |   | 2,079 |   |   |   | 4,001 |   |
| License      agreement payable - current maturities                                                                                                  |   |   | 1,327 |   |   |   | 1,065 |   |
| Total      current liabilities                                                                                                                       |   |   | 16,023 |   |   |   | 17,818 |   |
| License      agreement payable, net of current maturities                                                                                            |   |   | - |   |   |   | 1,023 |   |
| Notes      payable, net of discount                                                                                                                  |   |   | 2,569 |   |   |   | - |   |
| Other      long term liabilities                                                                                                                     |   |   | 345 |   |   |   | - |   |
| Liabilities      related to assets held for sale                                                                                                     |   |   | 78 |   |   |   | 232 |   |
| Total      liabilities                                                                                                                               |   |   | 19,015 |   |   |   | 19,073 |   |
| Commitments      and contingencies                                                                                                                   |   |   |   |   |   |   |   |   |
| Stockholders’      Equity                                                                                                                      |   |   |   |   |   |   |   |   |
| Preferred      stock, $0.01 par value; authorized 4,500,000, none issued at September 30,      2008 and December 31, 2007                            |   |   | - |   |   |   | - |   |
| Common      stock, $0.01 par value, 100,000,000 shares authorized, 23,519,069 issued      and outstanding at September 30, 2008 and December 31,2007 |   | 235 |   |   |   | 235 |   |
| Additional      paid-in capital                                                                                                                      |   |   | 64,793 |   |   |   | 63,451 |   |
| Accumulated      deficit                                                                                                                             |   |   | (54,715 | ) |   |   | (46,349 | ) |
| Total      stockholders’ equity                                                                                                                |   |   | 10,313 |   |   |   | 17,337 |   |
| Total      liabilities and stockholders’ equity                                                                                                |   | $ | 29,328 |   |   | $ | 36,410 |   |

----

| PROXIM      WIRELESS CORPORATION                                                                              |          |
|---------------------------------------------------------------------------------------------------------------|---------------|
| CONSOLIDATED      STATEMENTS OF OPERATIONS                                                                    |          |
| (in      thousands, except per share data)                                                               |          |
|                                                                                                          |          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                          |          |   |   |   |   |   |   |   |   |
|                                                                                                          |          | Three      Months Ended |   |   | Nine      Months Ended |   |
|                                                                                                          | Sept      30, |   |   | Sept      30, |   |
|                                                                                                          |          | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Revenues                                                                                                      |          | $ | 12,067 |   |   | $ | 15,908 |   |   | $ | 37,397 |   |   | $ | 48,182 |   |
| Cost      of goods sold                                                                                       |          |   | 7,685 |   |   |   | 8,219 |   |   |   | 21,436 |   |   |   | 25,787 |   |
| Gross      profit                                                                                             |          |   | 4,382 |   |   |   | 7,689 |   |   |   | 15,961 |   |   |   | 22,395 |   |
| Operating      expenses:                                                                                      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      costs                                                                                            |          |   | 3,845 |   |   |   | 5,385 |   |   |   | 14,009 |   |   |   | 15,134 |   |
| Restructuring      charges                                                                                    |          |   | - |   |   |   | - |   |   |   | - |   |   |   | 91 |   |
| General      and administrative                                                                               |          |   | 3,101 |   |   |   | 2,926 |   |   |   | 9,525 |   |   |   | 8,728 |   |
| Research      and development                                                                                 |          |   | 1,019 |   |   |   | 1,035 |   |   |   | 3,146 |   |   |   | 5,187 |   |
| Total      operating expenses                                                                                 |          |   | 7,965 |   |   |   | 9,346 |   |   |   | 26,680 |   |   |   | 29,140 |   |
| Operating      loss                                                                                           |          |   | (3,583 | ) |   |   | (1,657 | ) |   |   | (10,719 | ) |   |   | (6,745 | ) |
| Other      income (expenses):                                                                                 |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                          |          |   | 9 |   |   |   | 89 |   |   |   | 29 |   |   |   | 161 |   |
| Interest      expense                                                                                         |          |   | (186 | ) |   |   | (29 | ) |   |   | (300 | ) |   |   | (98 | ) |
| Other      income (loss)                                                                                      |          |   | (211 | ) |   |   | 4 |   |   |   | 395 |   |   |   | 2,604 |   |
| Gain      on sale of assets                                                                                   |          |   | - |   |   |   | - |   |   |   | - |   |   |   | 23 |   |
| Total      other income (expenses)                                                                            |          |   | (388 | ) |   |   | 64 |   |   |   | 124 |   |   |   | 2,690 |   |
| Loss      before income taxes                                                                                 |          |   | (3,971 | ) |   |   | (1,593 | ) |   |   | (10,595 | ) |   |   | (4,055 | ) |
| Benefit      (provision) for income taxes                                                                     |          |   | (39 | ) |   |   | (57 | ) |   |   | (152 | ) |   |   | (125 | ) |
| Loss      from continuing operations                                                                          |          |   | (4,010 | ) |   |   | (1,650 | ) |   |   | (10,747 | ) |   |   | (4,180 | ) |
| Income/(loss)      from discontinued operations, net of tax                                                   |          | $ | 2,282 |   |   | $ | (1,086 | ) |   | $ | 2,381 |   |   | $ | (1,880 | ) |
| Net      income (loss)                                                                                        |          | $ | (1,728 | ) |   | $ | (2,736 | ) |   | $ | (8,366 | ) |   | $ | (6,060 | ) |
| Weighted      average number of shares-basic and diluted used in computing net earnings      (loss) per share |          |   | 23,519 |   |   |   | 25,241 |   |   |   | 23,519 |   |   |   | 22,703 |   |
|                                                                                                          |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted net earnings (loss) per share:                                                         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          Continuing      operations                              |          | $ | (0.17 | ) |   | $ | (0.07 | ) |   | $ | (0.46 | ) |   | $ | (0.19 | ) |
| Discontinued      Operations                                                                                  |          | $ | 0.10 |   |   | $ | (0.04 | ) |   | $ | 0.10 |   |   | $ | (0.08 | ) |
|     Total                                                                                 |          | $ | (0.07 | ) |   | $ | (0.11 | ) |   | $ | (0.36 | ) |   | $ | (0.27 | ) |

----

|        RECONCILIATION      OF GAAP TO NON-GAAP FINANCIAL RESULTS |
|-----------------------------------------------------------------------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                            |   | Three      Months Ended |   |   | Three      Months Ended |   |
|-----------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                                                                            |   | 30-Sep-08               |   |   | 30-Jun-08               |   |
|                                                                                                            |   | GAAP                    |   |   | Adjustments             |   |   | Non-GAAP |   |   | GAAP |   |   | Adjustments |   |   | Non-GAAP |   |
| Revenues                                                                                                        |   | $                       | 12,067 |   |                    |   |   |   | $ | 12,067 |   |   | $ | 15,088 |   |   |   |   |   | $ | 15,088 |   |
|                                                                                                            |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of goods sold                                                                                         |   |                    | 7,685  |   |                    |   | (52 | )(a) |   |   | 7,517 |   |   |   | 7,831 |   |   |   | (143 | )(a) |   |   | 7,554 |   |
|                                                                                                            |   |                    |   |   |                    |   | (116 | )(c) |   |   |   |   |   |   |   |   |   |   | (134 | )(c) |   |   |   |   |
|                                                                                                            |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit                                                                                               |   |                    | 4,382  |   |                    |   | 168 |   |   |   | 4,550 |   |   |   | 7,257 |   |   |   | 277 |   |   |   | 7,534 |   |
| Operating      expenses:                                                                                        |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      costs                                                                                              |   |                    | 3,845  |   |                    |   | (5 | )(a) |   |   | 3,817 |   |   |   | 5,137 |   |   |   | (9 | )(a) |   |   | 5,040 |   |
|                                                                                                            |   |                    |   |   |                    |   | (23 | )(c) |   |   |   |   |   |   |   |   |   |   | (88 | )(c) |   |   |   |   |
| General      and administrative                                                                                 |   |                    | 3,101  |   |                    |   | (46 | )(a) |   |   | 2,551 |   |   |   | 3,051 |   |   |   | (87 | )(a) |   |   | 2,372 |   |
|                                                                                                            |   |                    |   |   |                    |   | (435 | )(b) |   |   |   |   |   |   |   |   |   |   | (490 | )(b) |   |   |   |   |
|                                                                                                            |   |                    |   |   |                    |   | (69 | )(c) |   |   |   |   |   |   |   |   |   |   | (102 | )(c) |   |   |   |   |
| Research      and development                                                                                   |   |                    | 1,019  |   |                    |   | (58 | )(a) |   |   | 933 |   |   |   | 1,082 |   |   |   | (117 | )(a) |   |   | 927 |   |
|                                                                                                            |   |                    |   |   |                    |   | (28 | )(c) |   |   |   |   |   |   |   |   |   |   | (38 | )(c) |   |   |   |   |
| Total      operating expenses                                                                                   |   |                    | 7,965  |   |                    |   | (664 | ) |   |   | 7,301 |   |   |   | 9,270 |   |   |   | (931 | ) |   |   | 8,339 |   |
| Operating      profit (loss)                                                                                    |   |                    | (3,583 | )      |                    |   | 832 |   |   |   | (2,751 | ) |   |   | (2,013 | ) |   |   | 1,208 |   |   |   | (805 | ) |
| Other      income (expenses):                                                                                   |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                                                                            |   |                    | 9      |   |                    |   |   |   |   |   | 9 |   |   |   | 7 |   |   |   |   |   |   |   | 7 |   |
| Interest      expense                                                                                           |   |                    | (186   | )      |                    |   |   |   |   |   | (186 | ) |   |   | (75 | ) |   |   |   |   |   |   | (75 | ) |
| Other      income (loss)                                                                                        |   |                    | (211   | )      |                    |   |   |   |   |   | (211 | ) |   |   | 745 |   |   |   |   |   |   |   | 745 |   |
| Gain      on sale of assets                                                                                     |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      other income (expenses)                                                                              |   |                    | (388   | )      |                    |   |   |   |   |   | (388 | ) |   |   | 677 |   |   |   |   |   |   |   | 677 |   |
| Loss      before income taxes                                                                                   |   |                    | (3,971 | )      |                    |   | 832 |   |   |   | (3,139 | ) |   |   | (1,336 | ) |   |   | 1,208 |   |   |   | (128 | ) |
| Benefit      (provision) for income taxes                                                                       |   |                    | (39    | )      |                    |   |   |   |   |   | (39 | ) |   |   | (41 | ) |   |   |   |   |   |   | (41 | ) |
| Loss      from continuing operations                                                                            |   | $                       | (4,010 | )      |                    | $      | 832 |   |   | $ | (3,178 | ) |   | $ | (1,377 | ) |   | $ | 1,208 |   |   | $ | (169 | ) |
| Income      (loss) from discontinued operations, net of tax                                                     |   |                    | 2,282  |   |                    |   | 85 | (b)  |   | $ | 2,367 |   |   | $ | 13 |   |   |   | 38 | (b)  |   | $ | 51 |   |
| Net      income (loss)                                                                                          |   | $                       | (1,728 | )      |                    | $      | 917 |   |   | $ | (811 | ) |   | $ | (1,364 | ) |   | $ | 1,246 |   |   | $ | (118 | ) |
| 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                                                                                      |   | $                       | (0.17  | )      |                    |   |   |   |   | $ | (0.13 | ) |   | $ | (0.06 | ) |   |   |   |   |   | $ | (0.01 | ) |
| Discontinued      operations                                                                                    |   | $                       | 0.10   |   |                    |   |   |   |   | $ | 0.10 |   |   | $ | 0.00 |   |   |   |   |   |   | $ | 0.00 |   |
| Total                                                                                                           |   | $                       | (0.07  | )      |                    |   |   |   |   | $ | (0.03 | ) |   | $ | (0.06 | ) |   |   |   |   |   | $ | (0.01 | ) |
|                                                                                                            |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (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 |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|