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Powerwave Technologies Announces Letter Of Intent With Nortel Networks For 3g Deployments

IRVINE, Calif. - Jan. 24, 2001 - Powerwave Technologies, Inc. (NASDAQ:PWAV) today announced that it has entered into a letter of intent to amend its existing supply agreement with Nortel Networks to cover the supply of third generation multi-carrier RF power amplifiers designed for UMTS networks. Nortel Networks purchase commitment is estimated to generate a minimum of approximately $140 million in revenue for these third generation products during 2001.

"Powerwave is very excited to announce this 3G purchase arrangement with Nortel Networks," stated Bruce C. Edwards, president and chief executive officer of Powerwave Technologies. "As the leading independent RF power amplifier manufacturer, we are excited to expand our relationship with Nortel Networks and we look forward to building upon this relationship in the years ahead."

"We are pleased to announce our purchase arrangement with Powerwave and we are impressed with the responsiveness that they have demonstrated in working towards common goals," stated Ken Bradley, Chief Procurement Officer, Nortel Networks. "We believe that the demand for next generation wireless networks is strong and will continue to grow in the years ahead and we look forward to working with Powerwave to help us supply the advanced wireless networks that customers want."

Company Background - Powerwave
Powerwave Technologies, Inc., an ISO 9001 quality certified company, is a leading supplier of high performance RF power amplifiers for use in wireless communications networks. Powerwave designs, manufacturers and markets both single carrier and multi-carrier RF power amplifiers. Powerwave's products are utilized in both cellular and PCS base stations in both digital and analog networks. Corporate headquarters are located at 2026 McGaw Avenue, Irvine, Calif. 92614. Telephone (949) 809-1100. For more information on Powerwave's high performance ultra-linear RF power amplifiers and amplifier systems, please call (888)-PWR-WAVE (797-9283) or visit our web site at www.Powerwave.com.

Powerwave Forward-Looking Statements
The foregoing statements regarding the existence and size of Nortel Networks purchase commitment and the demand and growth prospects for next generation wireless networks are "forward looking statements." All of these statements are subject to risks and uncertainties which could cause our actual results to differ materially from those projected or implied. Such potential risks and uncertainties include, but are not limited to, in no particular order: Nortel Networks purchase commitment is subject to the execution of a definitive binding amendment to the existing supply agreement between Nortel Networks and Powerwave; the inability of the parties to agree upon a mutually acceptable amendment; our ability to meet Nortel Networks delivery requirements; delays in deployment of 3G systems by wireless OEM's and delays in acceptance of 3G systems by network operators which could lessen Nortel Networks purchases from Powerwave; unexpected technical difficulties in developing 3G products; we require continued success in the design of new amplifier products and such products must be manufacturable and of good quality and reliability; our dependence on single source suppliers for certain key components used in our amplifiers exposes us to potential material shortages; variability in our gross margins on new products, including 3G products, which could result in a negative impact on our operating results; manufacturing delays or interruptions resulting from the movement and relocation of our production lines to new facilities in the first quarter of 2001; the ramp up of new production lines may take longer than planned and any such delays may have a negative impact on our operating results; our business requires continued favorable business conditions and growth in the wireless communications market.

More detailed information on these and additional factors which could affect Powerwave's operating and financial results are described in the Company's Form 10-K for the fiscal year ended January 2, 2000, and its Form 10-Q for the quarterly period ended October 1, 2000, both of which are filed with the Securities and Exchange Commission, and other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. Powerwave urges all interested parties to read these reports to gain a better understanding of the many business and other risks that the Company faces. Additionally, Powerwave undertakes no obligation to publicly release the results of any revisions to these forward-looking statements which may be made to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Nortel Networks is a trademark of Nortel Networks.

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