WebSky, Inc. Sells WebSky Argentina S.A. to NextWave Wireless and Enters into a Services Agreement with NextWave Argentina



    SAN FRANCISCO, December 4 /CNW/ - WebSky, Inc. (Pink Sheets:  WKYN), an
international developer of broadband spectrum today announced that NextWave
Wireless Inc. (NASDAQ:  WAVE), a global provider of mobile broadband products
and technologies, has acquired its Argentine subsidiary, WebSky Argentina,
S.A. WebSky Argentina operates Infotel Argentina S.A. and Callbi S.A.;
companies whose assets include telecommunications licenses and an aggregate of
42 MHz spectrum in the 2.5 GHz band, covering the Buenos Aires metro region
and an area of 180 kilometers surrounding the city. The transfer of the
licenses is subject to approval by telecommunications regulatory authorities
in Argentina. Under the terms of the agreement, part of the purchase price is
being held in escrow that will be released on occurrence of one of a number of
specified events.

    In addition, and in connection with WebSky's sale of its Argentine
subsidiary, WebSky has entered into a services agreement with NextWave
Argentina, a subsidiary of NextWave Wireless, to support NextWave's operations
in the country. Under this services agreement NextWave will pay to WebSky,
Inc. an aggregate of $2.5 million, payable in monthly installments, with up to
an additional $2.0 million upon the consummation of long-term contracts for
wireless services as specified in the services agreement. In addition, the
services agreement provides for royalty payments to WebSky equal to 7% of
revenues derived over a period of four years from any supply and services
contracts with companies specified in the services agreement.

    "We are very pleased that our agreements with NextWave provide for
WebSky's continuing activities in Argentina," says Douglas Haffer, President
and CEO of WebSky, Inc. "Our services agreement in particular leverages
WebSky's operational expertise in Argentina's telecommunications industry."

    WebSky's broadband spectrum development is focused exclusively on
emerging markets and the company is developing broadband spectrum
opportunities similar to its WebSky Argentina S.A. operation in other areas of
the world. In addition to Latin America, WebSky is developing wireless
broadband capabilities in South East Asia and Africa, and has recently opened
an office for its Asian operations in Bangkok, Thailand.

    "We believe that wireless broadband growth, particularly with the
emergence of WiMAX fixed and mobile technologies, will be most pronounced in
emerging countries where the capital expenditures required for hardwired
broadband networks are prohibitive," added Eduardo Axtle, WebSky's Vice
President for Business Expansion.

    About WebSky, Inc.

    WebSky, Inc. (Pink Sheets:  WKYN) secures and develops frequency spectrum
for broadband services in developing economies throughout the world, with
emphasis on emerging markets in Latin America, South East Asia, and Africa.
The company also provides technical, regulatory, and market development
services in those same markets. WebSky, Inc. is headquartered in San
Francisco, California and has offices elsewhere, including in Buenos Aires
and, in the near future, in Bangkok, Thailand. For more information please see
www.websky.us.

    Note Regarding Forward-Looking Statements

    This press release contains "forward-looking statements" for purposes of
the Private Securities Litigation Reform Act of 1995 that involve risks and
uncertainties. There can be no assurances that forward-looking statements will
be achieved, and actual events or results could differ materially from the
events or results predicted by such statements. WebSky makes no commitment to
update any forward-looking statements in order to reflect subsequent changes
in events or circumstances except as may be required pursuant to applicable
law.




For further information:

For further information: WebSky, Inc. Douglas P. Haffer, +1-415-992-7447
dhaffer@websky.us Eduardo A. Axtle, +1-415-992-7447 eaxtle@websky.us

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