AvaLAN Wireless Acquires Intellectual Property from Eleven Engineering

PALO ALTO, Calif., Feb. 6, 2007—AvaLAN Wireless, an innovator in the wireless Ethernet market, has acquired intellectual property from Eleven Engineering, a fabless semiconductor company, in a cash and stock transaction. Terms of the transaction were not released.

AvaLAN Wireless purchased intellectual property related to Eleven Engineering's ETHx product line and acquired rights to produce custom silicon implementations based upon Eleven Engineering's XInC2 micro-processor core. The XInC family of processors were designed from the ground up specifically for use in wireless applications. AvaLAN Wireless had an exclusive license for the ETHx product for the past three years with Eleven Engineering.

"The purchase of the ETHx product line and the ability to produce custom silicon is a significant strategic move for AvaLAN Wireless," said Mike Derby, Chief Executive Officer of AvaLAN Wireless. "This transaction provides AvaLAN with strong intellectual property and enhanced barriers from competitive forces. With our business model now enabled to become an radio chipset manufacturer AvaLAN Wireless will continue to provide excellent returns for our shareholders as we address new and expanding market opportunities."

"Eleven is pleased to close this transaction and very pleased to be holding an equity stake in AvaLAN," said Eleven Engineering CEO John Sobota. "Eleven's XInC processor architecture has proven to deliver numerous advantages to wireless and real-time applications, and we feel AvaLAN is the best partner to bring these advantages to the growing market of commercial wireless Ethernet."

AvaLAN Wireless Systems, Inc. AvaLAN Wireless Systems, Inc. is a specialist in the long range Wireless Ethernet market, offering both non line-of-sight 900 MHz and line-of-site 5.8 GHz wireless Ethernet bridge products. AvaLAN's solutions offer affordable Ethernet connectivity at the network's edge. With both indoor and outdoor models available, and a full line of specialty 900 MHz and 5.8 GHz antennae, AvaLAN provides its customers with a way to replace costly wiring with a wireless Ethernet bridge that can remotely enable surveillance cameras, digital signage, biometric scanners, access control devices, remote printers, industrial networking and internet kiosks. AvaLAN's products offer the ideal combination of price, data rate, security, interference avoidance, quality-of-service and ease-of-use that professional installers and consumers are demanding.

AvaLAN Wireless Systems Inc. is headquartered in Palo Alto, Calif., and is online at www.avalanwireless.com.

Founded in 1992, Eleven Engineering is a fabless semiconductor company specializing in wireless baseband processors and digital wireless audio modules. Eleven's XInC family of multithreaded embedded processors deliver up to 8x benefits in MIPS/$ and MIPS/mW vs. conventional serial processors when used in wireless or realtime-intensive applications. Leveraging its XInC family of wireless processors, Eleven has become a global leader in digital wireless audio. The Squeak family of digital wireless audio modules employ Eleven's unique adaptive frequency hopping algorithm; WFD (Walking Frequency Diversity) to deliver superior audio quality of service (QoS), even in the crowded 2.4 GHz band. Eleven also offers evaluation kits, development kits, reference designs, and engineering services to facilitate easy integration and reduce time to market. More information about Eleven and how to incorporate Eleven's robust wireless solutions is available online at www.ElevenEngineering.com.