**Exhibit
      99.1**




**For
      Further Information Contact:**


David
      Renauld


Vice
      President, Corporate Affairs




(413)
      584-1425







**FOR
      IMMEDIATE RELEASE**








**TERABEAM
      FORECASTS PROFITABILITY IN FOURTH QUARTER 2005**





**SAN
      JOSE, CA, January 10, 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 fourth quarter 2005. The company currently believes that revenue
      for the fourth quarter will be in the upper range of the previously-provided
      guidance of $23 to $27 million. In addition, the company currently believes
      that
      it will be both profitable on a net income basis and cash-flow positive for
      the
      fourth quarter 2005.





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 audit of its
      year-end financial results. The company expects to release its fourth quarter
      and full year 2005 financial results in late February or early March
      2006.





**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 and year ended December 31, 2005 and related audit of those
      financial statements; difficulties in predicting Terabeam’s future financial
      performance; risks arising from and relating to Terabeam’s recent acquisition of
      Proxim Corporation’s operations, assets, and relationships, including without
      limitation risks and effects of patent infringement claims and related
      litigation; 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.*