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Powerwave Technologies Updates Facilities Move And Current Business Outlook

IRVINE, Calif. - Mar. 20, 2001 - Powerwave Technologies, Inc. (NASDAQ:PWAV) today provided an update on its ongoing facility move and current business outlook.

Powerwave announced today that it has substantially completed the move of its manufacturing lines to its new facility located in Santa Ana, California, as well as the move of its engineering, sales and marketing and general administrative personnel. In addition, the Company has relocated its warehouse operations to a new Santa Ana facility.

Powerwave also announced today that its first quarter revenue is anticipated to be below the company's previous expectations. For the first quarter ending April 1, 2001, net sales are now expected to be in the range of $70 million to $80 million. Due to this revenue shortfall, the Company expects to report a loss for the first quarter.

"During the current quarter, we have been completing the planned relocation of our manufacturing facility to our new facility in Santa Ana," stated Bruce C. Edwards, President and Chief Executive Officer of Powerwave Technologies, Inc. "As we had previously stated, we anticipated that the move would have an impact on our production capabilities this quarter due to the requirement to stop production while individual product lines were being moved. These impacts brought our production capability for the quarter to the lower end of our previous estimated range at approximately $105 million. While our first quarter production capability was within our previously indicated range, we have recently experienced significant order quantity reductions and delivery push outs for the majority of our 2G single carrier products which has caused our expectations for 2G single carrier products to now be substantially below those from both our prior quarter and the year ago first quarter of fiscal year 2000. Additionally, the sharp economic slowdown occurring in the United States, coupled with more specifically, the slowdown in the wireless communications sector, has caused us to see delays in purchasing decisions at the network operator level."

"While we are clearly disappointed with the dramatic slowdown in the Company's 2G single carrier product lines and the impact that the current economic environment appears to be having on our overall demand level, based upon ongoing discussions, we expect to add additional top five base station OEM's as direct customers for our high powered multi-carrier products during the first quarter. We believe some of the recent slowdown in 2G single carrier demand might indicate a move to multi-carrier technology by this key customer base which could be beneficial to Powerwave in the future. In addition, while the market has been concerned about significant delays in 3G deployment, first quarter sales of Powerwave's 3G WCDMA products are expected to increase four fold from the level achieved in the immediately preceding fourth quarter and represent between 15% and 20% of our first quarter fiscal year 2001 sales."

Powerwave plans to release its financial results for the first quarter ending April 1, 2001, on April 12, 2001 and will provide updated expectations for the remainder of the year at that time.

About Powerwave Technologies
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, manufactures and markets both single carrier and multi-carrier RF power amplifiers for use in cellular, PCS and 3G base stations throughout the world. Corporate headquarters are located at 1801 E. St. Andrew Place, Santa Ana, Calif. 92705. Telephone (714) 466-1000. 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.

Forward-Looking Statements
The foregoing statements regarding financial results and revenue composition for the company's first quarter as well as the demand for multi-carrier products from OEM customers are "forward looking statements" and preliminary in nature. These statements reflect Powerwave's current beliefs and are based upon information currently available to Powerwave. Powerwave is 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: delays in deployment of wireless systems by wireless OEM's and delays in upgrading or expanding wireless systems by network operators and order cancellations and further order pushouts, all of which would cause us to have excess inventories which could have a negative impact on our operating results; variability in our gross margins on new products which could result in a negative impact on our operating results; 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 which are presently being negatively affected by the economic slowdown in the United States and 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.

NOTE: Powerwave and Powerwave Technologies are registered trademarks of Powerwave Technologies, Inc. and the Powerwave logo is a trademark of Powerwave Technologies, Inc.

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