O2 introduces new Sierra Wireless USB Modem for wireless broadband in the United Kingdom

    The Compass 885 USB Modem from Sierra Wireless now available in the UK on
    the O2 network

    LONDON and VANCOUVER, July 3 /CNW/ - O2 and Sierra Wireless (NASDAQ:   SWIR
- TSX: SW) today announced the world's first commercial launch of the Sierra
Wireless Compass(TM) 885 USB Modem on the O2 network in the UK. Designed for
mobile professionals, laptop computer users and frequent travellers, the O2
Business USB modem has a smaller, more durable USB design with download speeds
of up to 7.2 Mbps (megabits per second) and upload speeds of up to 2 Mbps. The
O2 Business USB modem can be purchased through O2 direct, corporate and
business sales channels and online at www.o2.co.uk.
    The O2 Business USB modem packs user-friendly features into a small and
familiar USB connection design. Designed to offer a flawless user experience,
the modem includes TRU-Install(TM) automatic software installation to simplify
setup, a microSD memory card slot to expand its functionality, and offers
seamless high-speed wireless connectivity for both Mac and Windows notebook
and desktop computers.
    Enabling users to work at home, in the office or while travelling, the O2
Business USB modem features the ability to roam globally, with tri-band
HSPA/UMTS support and quad-band GSM/EDGE support, ensuring compatibility with
networks in many countries around the world. It also includes a connector for
an external antenna, allowing users in remote areas or fringe network coverage
to extend and strengthen their connection to the network.
    "The Compass 885 USB modem is designed to satisfy the pace and needs of
busy mobile professionals," said Jim Lahey, vice president, EMEA, for Sierra
Wireless. "It offers ease of use, worldwide high-speed roaming for simple,
reliable connectivity while travelling, with a small, minimalist design, and
we're pleased to be able to deliver it first to O2 customers in the UK."

    About O2

    -   O2 is a leading communications company for consumers and businesses
        in the UK, with over 18.4 million mobile customers and over 130,000
        fixed broadband customers as at 31 March 2008.
    -   O2 UK IS part of Telefsnica O2 Europe which owns O2 in the UK,
        Ireland, Slovakia, Germany and the Czech Republic, and has
        42.8 million customers.
    -   In 2006 Telefonica O2 Europe acquired Be, the UK fixed broadband
        provider, and in October 2007 O2 launched its broadband service using
        the Be network.
    -   Be Unlimited caused a stir in 2005 by launching the UK's fastest
        broadband, a 24Mbps ADSL2+ product.
    -   O2 UK is the naming rights partner of The O2, the world-class
        entertainment venue.
    -   O2 UK was ranked the 6th best place to work in the Best Companies to
        Work for 2008 List and has been awarded a three-star accreditation
        denoting an 'extraordinary' company.
    -   O2 UK was launched on 1 May 2002 and now has more customers than any
        other UK mobile network.
    -   O2's UK mobile network covers 99% of the UK's population. O2's 3G
        network covers 80% of the UK population and is fully HSDPA-enabled,
        providing speeds of up to 1.3 Mbps for customers with an HSDPA-
        enabled device.
    -   Telefsnica O2 Europe also owns 50% of the Tesco Mobile and Tchibo
        Mobilfunk joint venture businesses in the UK and Germany.
    -   (For b-roll footage of O2, please visit www.thenewshub.co.uk)
    -   Further press information about O2 can be found at

    About Sierra Wireless

    Sierra Wireless (NASDAQ:   SWIR - TSX: SW) modems and software connect
people and systems to mobile broadband networks around the world. The Company
offers a diverse product portfolio addressing enterprise, consumer, original
equipment manufacturer, specialized vertical industry, and machine-to-machine
markets, and provides professional services to customers requiring expertise
in wireless design, integration, and carrier certification. For more
information about Sierra Wireless, visit www.sierrawireless.com.
    "Compass" is a trademark of Sierra Wireless. Other product or service
names mentioned herein may be the trademarks of their respective owners.

    Sierra Wireless Forward Looking Statements

    This press release contains forward-looking statements that involve risks
and uncertainties. These forward-looking statements relate to, among other
things, plans and timing for the introduction or enhancement of our services
and products, statements about future market conditions, supply conditions,
channel and end customer demand conditions, revenues, gross margins, operating
expenses, profits, and other expectations, intentions, and plans contained in
this press release that are not historical fact. Our expectations regarding
future revenues and earnings depend in part upon our ability to successfully
develop, manufacture, and supply products that we do not produce today and
that meet defined specifications. When used in this press release, the words
"plan", "expect", "believe", and similar expressions generally identify
forward-looking statements. These statements reflect our current expectations.
They are subject to a number of risks and uncertainties, including, but not
limited to, changes in technology and changes in the wireless data
communications market. In light of the many risks and uncertainties
surrounding the wireless data communications market, you should understand
that we cannot assure you that the forward-looking statements contained in
this press release will be realized.

    %SEDAR: 00011917E

For further information:

For further information: Sharlene Myers, Sierra Wireless, Phone: (604)
232-1445, Email: smyers@sierrawireless.com

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