Craig Wireless Systems Ltd. signs definitive agreement to sell interest in New Zealand and Norway Spectrum Holdings

    WINNIPEG, Feb. 9 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or
the "Company") (TSX: CWG), announced today that it has signed an agreement
with Everest Wireless Partners I LP ("Everest"), to sell a one half interest
in the licenses for spectrum rights held by the Company in Norway and New
Zealand for aggregate consideration of USD$5.75 million (approximately
CDN$7.04 million based upon Friday, February 6, 2009 exchange rate).
    It is a condition of the sale that Craig Wireless and Everest receive all
required government and regulatory approvals by March 31, 2009. In order to
give effect to the sale, once all requisite approvals have been obtained, the
licenses will be transferred into two new wholly-owned subsidiary companies of
the Company, both of which are to be incorporated under the laws of the Cayman
Islands. Fifty percent of the issued and outstanding shares of each new
subsidiary will be sold to Everest for aggregate consideration of USD$5.75
million. T. Boyd Craig and J. Drew Craig have consented to the transaction in
their capacity as the Company's senior lenders and have agreed that they will
not require that the proceeds of the sale be used to reduce amounts owing to
them by the Company.
    "We are very pleased to announce this joint venture with Everest."
commented T. Boyd Craig, Co-Chief Executive Officer of the Company. Mr. Craig
went on to state: "The investment by Everest Wireless in our Norway and New
Zealand spectrum assets demonstrates the relative stability of the value of
our current spectrum asset portfolio in spite of the current condition of the
global markets. We are excited to be entering into this venture with Everest
and look forward to working with them to maximize the value of our holdings in
Norway and New Zealand over time."
    "We are pleased to be participating in this joint venture with industry
pioneer, Craig Wireless." commented Rahul Prakash, of Everest. Mr. Prakash
commented further "We are strong believers in the inherent value of spectrum.
We also believe that as global markets recover, and with ever increasing
demand for wireless broadband systems and applications, spectrum assets offer
attractive investment returns."
    The Company acquired the subject licenses in late 2007. The license for
spectrum rights in Norway is for the use of 50 MHz of 2500-2690 MHz spectrum,
and the license in New Zealand is for spectrum management rights relating to
the use of 40 MHz of spectrum in two separate lots, in the 2500-2520 and
2620-2640 MHz (2.5 GHz and 2.6 GHz) bands.

    About Everest Wireless Partners I LP

    Everest is a Virginia, USA based venture capital firm, with a focus on
investment in communications companies under the direction of experienced
investor Rahul Prakash. Mr. Prakash is the President and Chairman of ET GP I,
Inc., the corporate general partner of Everest, a Galleon group sponsored
private investment firm.

    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 and other fourth generation (4G) 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, Co-Chief Executive Officer,
Craig Wireless Systems Ltd., Tel: 416-515-2222 ext. 2; email:
craiginfo@craigwireless.com