Craig Wireless Systems Ltd. announces amendment to loan agreement with related parties

    WINNIPEG, Jan. 6 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or
the "Company") (TSX: CWG) announces that Mr. T. Boyd Craig and Mr. J. Drew
Craig, the Co-Chief Executive Officers of the Company, have agreed to amend
the terms of their existing $11.6 million dollar loan facility to the Company
(the "Loan").
    The amendment provides for the removal and waiver of the right to convert
all or part of the Loan into subordinate voting shares of the Company upon
maturity of the Loan (the "Conversion Right") at a price equal to the
weighted-average trading price of the subordinate voting shares of the Company
on the Toronto Stock Exchange for the five trading days preceding the date of
    In light of the recent volatility of capital markets and the inability to
predict the market price of the Company's shares upon maturity of the Loan,
Mr. T. Boyd Craig and Mr. J. Drew Craig have determined that it is in the best
interests of the shareholders of the Company to waive the Conversion Right,
thus protecting shareholders from the potential for significant dilution that
may have resulted in the event that the Conversion Right was exercised. A
formal waiver and amending agreement was executed on January 6, 2009 to that
    "We maintain that the best interests of the Company and its shareholders
is our first priority," stated Mr. J. Drew Craig. "As it became evident that
the possible conversion of the principal amount of our loan into shares could
result in very substantial dilution to shareholders, we made the decision to
waive the Conversion Right."
    Mr. Barry Reiter, an independent director, stated on behalf of the Board
of Directors of the Company: "The waiver of this significant right exemplifies
the Craig's commitment and support for this Company. The Board of the Company
applauds Boyd and Drew for recognizing the effects of current market
conditions and for making their decision for the benefit of the Company and
its shareholders."

    About Craig Wireless Systems Ltd.

    Craig Wireless Systems Ltd. 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

    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.

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

For further information:

For further information: J. Drew Craig, Co-Chief Executive Officer,
Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2; email:

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