Craig Wireless announces filing of first quarter financials



    WINNIPEG, Jan. 14 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless"
or the "Corporation") (TSX: CWG), is pleased to announce that it has released
its first quarter unaudited financial statements for Fiscal 2008, for the
three months ended November 30, 2007.
    Revenue for the first quarter ended November 30, 2007, was $468,712, a
decrease from $534,520 compared to the same period in Fiscal 2007. This
decrease is a result of, among other things, the Corporation's shift of focus
away from its current services of fixed-wireless digital television
distribution business to a new suite of services that are focused on portable
and mobile applications utilizing WiMAX-enabled technology.
    Realized revenue was also impacted by the Corporation's change of primary
equipment suppliers in Greece. The Corporation had determined that its
previous primary equipment supplier for deployment in Greece was unable to
fulfill its commitments and as a result the Corporation has made a strategic
change to Motorola Inc. as its primary supplier in Greece. Motorola Inc. has
responded and has provided equipment and services to replace the existing
equipment to meet the deployment requirements under a wholesale agreement with
a local telephone operator, Lannet Communications S.A. ("Lannet"), for the
marketing of WiMAX services to consumers. The agreement with Lannet has been
amended to accommodate the change in suppliers and Lannet has responded
favourably to the change. These changes impacted the realized revenue from
Lannet for the three months ended November 30, 2007 and resulted in an
adjustment to the Corporation's revenue expectations for Fiscal 2008.

    HIGHLIGHTS
    ----------
    The Corporation undertook significant events during the first quarter,
which is the first quarter of the Corporation following its going public
transaction with SSQ Acquisitions Inc. that closed on September 1, 2007. These
significant events included:

    
    -   The successful bid in Norway to acquire a license to use 50 MHz of
        2500-2690 MHz spectrum at a cost of 72,391,000 Norwegian Kroners,
        which is the equivalent of approximately CDN $12.8 million, plus
        approximately $500,000 in expenses relating to the auction. The
        Norwegian spectrum license is technology and service neutral, is
        tradable and is valid until December 2022.

    -   The Corporation has entered into an agreement with Alcatel-Lucent
        Canada Inc. for the supply of equipment for the deployment of
        cellular sites in the Coachella Valley, California by the end of
        April 2008.

    -   Subsequent to the end of its first quarter, the Corporation
        participated in a spectrum auction in New Zealand. The Corporation
        was successful in winning spectrum management rights to use 40 MHz of
        spectrum, in two separate lots, in the 2500-2520 and 2620-2640 MHz
        bands. The price for the spectrum management rights was
        1,055,000 New Zealand Dollars, which is the equivalent of
        approximately CDN $800,000 on December 18, 2007, plus approximately
        $150,000 in expenses related to the auction.

    -   Also subsequent to the end of the Corporation's first quarter,
        Mr. William Fraser, former President and Chief Executive Officer of
        Manitoba Telecom Services Inc., was appointed to the board of
        directors of Craig Wireless, effective January 8, 2008.
    

    The first quarter unaudited financial statements of Craig Wireless, along
with the management discussion and analysis of financial condition and results
of operations, are available for viewing on the SEDAR website at
www.sedar.com.

    About Craig Wireless Systems Ltd.

    Craig Wireless Systems and its affiliates (collectively, the "CWS Group")
offer a broad range of telecommunications services, including, broadband
Internet access, television programming delivery, business connectivity
solutions, hosting, security and telecommunications solutions. Through certain
members of the CWS Group, Craig Wireless holds or leases licenses for spectrum
in the 2.5 GHz, 2.6 GHz or 3.5 GHz bands in Manitoba, British Columbia, the
Coachella Valley region, California, United States, Greece, Norway and New
Zealand. Spectrum in these ranges is effective for delivery of
point-to-multipoint signals, possesses robust bandwidth capability and
supports emerging WiMAX-based applications, including portable and mobile
applications.

    The Toronto Stock Exchange does not accept responsibility for the
    adequacy or accuracy of this release.

    Notice on forward-looking statements

    This release includes forward-looking statements regarding Craig Wireless
and its business. Such statements are based on management's current
expectations. The forward-looking events and circumstances discussed in this
release may not occur and actual results could differ materially as a result
of known and unknown risk factors and uncertainties affecting Craig Wireless
and its business. No forward-looking statement can be guaranteed.
Forward-looking statements speak only as of the date on which they are made
and Craig Wireless does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new information,
future events, or otherwise.





For further information:

For further information: J. Drew Craig, Executive Chairman, Craig
Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2, email:
craiginfo@craigwireless.com

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Craig Wireless Systems Ltd.

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