Subject: [NEXTEL-1] Terabeam, YDI Make Merger Pact

From: [email-masked]
Date: Wed, 14 Apr 2004 21:30:59 -0400

Terabeam, YDI Make Merger Pact
BY SUSAN RUSH
APRIL 14, 2004

In the name of convergence, two technologies are being brought under one
roof:
free space optics (FSO) and point-to-point millimeter wave (MMW).
Specifically, YDI Wireless has made a play to bring Terabeam under its
wing as a wholly owned subsidiary.

Because YDI offers MMW systems and Terabeam offers both MMW and FSO
systems, the combined company will have a complementary product mix.
Under the terms of the deal, each share of Terabeam's common stock will
be exchanged for 0.22 shares of YDI's common stock. The agreement
includes a clause that if YDI's stock price goes higher than $5.40 a
share, the exchange offer will be reduced to 0.22 shares of YDI common
stock for each Terabeam share. When the transaction is complete, YDI
shareholders will own about 53 percent of the combined entity. YDI's
current management team will run the combined entity, with Robert
Fitzgerald at the helm. Terabeam's head honcho Dan Hesse will become a
member of the company's board of directors.

Hesse, former AT&T Wireless CEO, joined Terabeam in 2000 and expected to
grow the company, but the fallout in the telecom sector hindered those
plans.  "Terabeam was one of the few survivors of the telecom meltdown,
which is a credit to Dan Hesse's ability to be flexible and smart,"
wireless analyst Jeff Kagan says.  Kagan speculates that Hesse will move
on to other opportunities that will enable him to run a larger company.
"That's where his experience and passion lies," he says.
News of the merger gave YDI's stock a shot in the arm. As of mid-day
EDT, the company's shares were up 15 percent o $4.80. The transaction is
expected to close in the second or third quarter of this year.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=4&pubdate=04/14/04

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