Subject: [NEXTEL-1] interWAVE Legal Counsel Completes Investigation of Allegations Made by Former Employee

From: [email-masked]
Date: Wed, 07 Apr 2004 14:38:30 -0400

interWAVE Legal Counsel Completes Investigation of Allegations Made by
Former Employee

*  interWAVE completes its 10-Q filing with the SEC

*  Company formally notifies Nasdaq that its 10-Q filing is now in
compliance, and requests "E" designation be removed from stock symbol

*  Board's Audit Committee commences process of selecting new
independent auditors

MOUNTAIN VIEW, Calif., March 31 /PRNewswire-FirstCall/ -- interWAVE
Communications International Ltd. (Nasdaq: IWAV; IWAVE) today announced
that the Company's external legal counsel has completed its
investigation of the allegations made by a former employee.

The Company filed an amendment to its report on Form 10-Q/A for the
quarter ended December 31, 2003 on March 25, 2004.  This latest
amendment removed the previous Explanatory Note contained in the prior
amendment on 10-Q/A filed on March 2, 2004.  That previous Explanatory
Note had disclosed that the Company's legal counsel was investigating
allegations from a former employee.  It also disclosed KPMG, LLP, the
Company's independent auditors, had informed interWAVE that its review
of the Company's financial statements in the 10-Q would not be completed
until KPMG, LLP had reviewed the results of legal counsel's
investigation of the allegations.  The independent auditors' review is
now complete.

As a result of submitting this latest amended 10-Q filing, interWAVE has
formally notified the Nasdaq Stock Market that its 10-Q filing for the
December 31, 2003 is now complete, which the Company believes places the
Company back into compliance with Nasdaq Marketplace Rule 4310(c)(14).
interWAVE has requested that Nasdaq remove the "E" designation from the
Company's stock symbol.

The Audit Committee of interWAVE's Board of Directors has initiated the
process of the selection of new independent auditors.  The Company has
been
advised by KPMG, LLP that such firm has resigned as the Company's
independent
auditors, and the Company today filed a report on 8-K relating to this
resignation.  This 8-K report states that there were no disagreements
with
KPMG LLP on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedures which
disagreements, if
not resolved to KPMG LLP's satisfaction, would have caused KPMG LLP to
make
reference to such disagreement in their report in connection with the
audits
of the consolidated financial statements as of and for the years ended
June 30, 2003 and June 30, 2002, and the subsequent interim period
through March 25, 2004.  Also, KPMG's audit report did not contain an
adverse opinion or a disclaimer of opinion and was not qualified or
modified as to uncertainty, audit scope or accounting principles on the
financial statements of interWAVE as of June 30, 2003 and June 30, 2002,
and for each of the years in the three-year period ended June 30, 2003,
except that their report included a separate paragraph emphasizing the
adoption of the provisions of Financial Accounting Standard No. 142
regarding goodwill and other intangible assets.  In addition, KPMG's
audit report did not contain an adverse opinion or a disclaimer of
opinion and was not qualified or modified as to uncertainty, audit scope
or accounting principles on the financial statements of interWAVE as of
June 30, 2002 and June 30, 2001, and for each of the years in the
three-year period ended June 30, 2002, except that their report included
a separate explanatory "going concern" paragraph.

The Company expects to have new independent auditors engaged in a time
frame that will enable the new auditors to timely review the Company's
financial statements for the quarter ended March 31, 2004.

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/03-31-2004/0002138864&EDATE=

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