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YDI Wireless, Inc. is the result of a merger consummated on April
1, 2003 between Telaxis Communications Corporation and Young
Design, Inc. Telaxis was a publicly traded company that focused on
developing high capacity millimeter wave wireless products. Young
Design was a privately held company that developed, produced, and
sold wireless data products, primarily in microwave frequencies.
Subsequent to the merger, the company effected a 1 for 100 reverse
stock split followed by a 25 for 1 forward stock split,
re-incorporated in Delaware, and changed its name to YDI Wireless,
Inc. Prior to its merger with Telaxis, Young Design had grown
through a combination of organic growth and acquisitions. In March
2003, Young Design acquired certain assets and licensed
technologies to permit it to manufacture and sell the Link CX
product. In May 2002, Young Design acquired certain assets and
licensed technology to permit it to manufacture and sell the Link
EX, Link 4X and RAN products. In May 2001, Young Design purchased
Zeus Wireless, Inc., a manufacturer of low speed wireless data
equipment.
On May 14, 2004, YDI acquired KarlNet, Inc., a pioneer and
leader in software development for operating and managing wireless
networks. Founded in 1993, KarlNet had grown from a pioneer in
Internet firewall and security solutions to a leading provider of
wireless software and systems. KarlNet is being integrated into
the operations of YDI and will function as YDI’s software design
and support center as well as providing digital hardware design
and support.
On June 22, 2004, YDI acquired Terabeam Corporation. Terabeam
was a provider of broadband wireless solutions that extended and
optimized carrier and enterprise networks using high frequency
millimeter wave (60 GHz radio frequency) and free space optics
(invisible light beam) technologies. Terabeam had a history of
significant losses and cash burn. In connection with the merger
and subsequent consolidation, YDI reduced capital expenditures,
significantly reduced the personnel at Terabeam, closed
Terabeam’s two offices in the Redmond, Washington area, and
consolidated resources at Terabeam’s North Andover,
Massachusetts facility. The North Andover facility has been
integrated into YDI focusing on millimeter wave and microwave
hardware development and support.
Based on Terabeam’s high level of positive name recognition,
in mid-August, YDI decided to adopt the name “Terabeam
Wireless” for its go to market strategy. YDI is also
contemplating changing its actual corporate name to “Terabeam
Wireless” or a similar name.
On June 25, 2004, YDI acquired Ricochet Networks, Inc. Ricochet
is a leading mobile Wireless Internet Service Provider (WISP)
headquartered in Denver, Colorado. Ricochet provides high-speed
mobile Internet connectivity in San Diego, California and Denver
and has over 7,000 paying customers. Ricochet’s wireless
Internet services business is operated independent of YDI except
for certain overlapping personnel and functions. Ricochet used to
operate in many major metropolitan cities including New York, Los
Angeles, San Francisco, Seattle, Chicago, Philadelphia, Phoenix,
Baltimore, Philadelphia, Atlanta, Dallas/Fort Worth, Minneapolis,
and Washington, DC. Ricochet is investigating the feasibility of
restoring service in these markets. In addition, Ricochet is
pursuing opportunities to provide Homeland Defense and public
safety systems utilizing the Ricochet solution. Also, Ricochet is
offering equipment to service providers, WISPs, and municipalities
who wish to offer wireless Internet services and become part of
Ricochet’s network.
YDI has signed an agreement to acquire Phazar Corp. Phazar is a
holding company. Its wholly owned subsidiary, Antenna Products
Corporation, designs, manufactures, and markets standard and
custom antennas, guyed and self supported towers, support
structures, masts, and communication accessories worldwide.
Customers include the U.S. Government, both military and civil
agencies, U.S. Government prime contractors, and commercial
clients. This transaction is currently expected to be completed by
November 30, 2004.
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