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Sierra Wireless Announces Acquisition of AirLink Communications

Sierra Wireless, Inc. announced a definitive agreement to acquire AirLink Communications, Inc., a privately-held developer and supplier of high value fixed, portable and mobile wireless data solutions for industrial and public safety applications.

AirLink, founded in 1993, is located in Hayward, California and currently has 50 full time employees. The company has achieved solid growth with revenues of $24.8 million in 2006, compared to $19.8 million in 2005. AirLink had earnings from operations of $3.9 million in 2006 and gross margin of 44%. The company’s unaudited results are reported in US dollars and in accordance with United States generally accepted accounting principles.

"The acquisition of AirLink Communications is consistent with our strategy of renewing and strengthening our emphasis on higher gross margin products and solutions," said Jason Cohenour, President and Chief Executive Officer of Sierra Wireless. "We believe that combining AirLink’s leading modem and software products business with our rugged MP product line creates a focused, well-positioned leader in the mobile and machine to machine (M2M) segments of our market. Furthermore, we believe that the business from these market segments has solid growth prospects and an attractive gross margin and operating margin profile. We view AirLink as an important strategic addition to our overall business."

 [March 7, 2007]


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