NextWave Wireless to Restate Quarterly Results for 2006; Restatement to Have No Impact on Cash

    SAN DIEGO, March 23 /CNW/ - NextWave Wireless Inc. (NASDAQ:  WAVE) today
announced that upon the recommendation of management to the Audit Committee of
the Board of Directors of NextWave Wireless Inc. (the "Company"), the Company
determined that the Company's unaudited financial statements for the quarterly
periods ended March 31, 2006, June 30, 2006 and September 30, 2006 should no
longer be relied upon as a result of a required correction in its revenue
recognition pursuant to certain software contracts of its PacketVideo
Corporation ("PacketVideo") subsidiary and the incorrect deferral of certain
software development costs at PacketVideo.

    PacketVideo recognized revenue from certain software arrangements that
provide for ongoing maintenance and support in the incorrect reporting
periods. The contracts subject to the restatement typically include
engineering and development work, royalty revenue and post-contract customer
support ("PCS"). The total revenue recognized over the term of the
arrangements will remain unchanged. The Company will make an adjustment to the
timing of the recognition of revenue, and the related costs, under software
contracts which contain PCS. The Company will recognize the revenue and
associated costs over the entire PCS period. In addition, the Company will
also adjust the quarterly results to expense previously deferred costs,
classified as pre-contract development costs, into engineering, research and

    "This restatement is not expected to have any impact on cash or cash
flows," said NextWave's Executive Vice President and Chief Financial Officer
George Alex. "Moreover, this deferral of revenue is not expected to impact the
total amount of revenue to be recognized over the contractual period."

    The reduction to revenue for the quarterly periods ended March 31, 2006,
June 30, 2006 and September 30, 2006 is expected to be approximately $1.8
million, $2.0 million and $1.4 million, respectively. The Company expects to
recognize a portion of these deferred revenues in the fourth quarter of 2006
and expects to recognize the predominant portion of the deferred revenues in
2007 and 2008, with the majority being recognized in 2007.

    About NextWave Wireless Inc.

    NextWave Wireless is engaged in the development of next-generation mobile
broadband and wireless multimedia products, technologies, and services for
mobile device and network infrastructure manufacturers and for wireless
service operators. Founded in 2005 and comprised of highly experienced
wireless industry veterans from AT&T Wireless, Intel, Microsoft, Motorola,
Nokia, QUALCOMM, and Texas Instruments, NextWave Wireless develops WiMAX
semiconductors, network components and complete wireless LAN/WAN network
solutions. Its PacketVideo subsidiary, a global provider of embedded
multimedia software for mobile phones and converged devices, provides a wide
range of multimedia solutions to many of the leading wireless carriers and
handset manufacturers worldwide. NextWave has acquired a nationwide spectrum
footprint in the U.S. that covers 247 million people and owns nationwide WiMAX
spectrum in Germany through a majority-controlled joint venture. The Company
intends to partner with companies to deploy next-generation wireless broadband
networks on its spectrum that utilizes its next-generation wireless broadband
products and technologies. Visit NextWave Wireless at

    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 or from any other forward-looking statements made
by, or on behalf of, NextWave, and should not be considered as an indication
of future events or results. Important factors that could cause actual events
or results to differ materially include: the completion of our restatement,
which could result in changes in revenues actually reported for the quarterly
periods ended March 31, 2006, June 30, 2006 and September 30, 2006 that differ
from the amounts disclosed herein; our ability to complete the restatement in
a timely manner and timely file all required reports under the Securities
Exchange Act of 1934; our ability to remediate the material weakness in
internal controls over financial reporting; our ability to develop and
commercialize mobile broadband products and technologies; consumer acceptance
of WiMAX technology; our ability to enter into and maintain network partner
relationships; changes in government regulations; changes in capital
requirements; and other risks described in filings with the Securities and
Exchange Commission. NextWave makes no commitment to revise or update any
forward-looking statements in order to reflect changes in events or
circumstances after the date any such statement is made, except as may be
required pursuant to applicable law.

For further information:

For further information: NextWave Wireless Inc. Roy Berger, 203-742-2572
Executive Vice President, Corporate Communications

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