WiFi Wireless Announces New Protocol

TIGARD, OR -- 12/10/2004 -- WiFi Wireless, Inc. (OTC: WFIW) announced today that they had contracted with AValon RF, Inc. of El Cajon, CA, to design and produce its first generation wireless terrestrial “last mile” mobile UHF, narrow band, high data rate, 802.22 based solution for it’s global communication network.

WiFi Wireless’ network, through its proprietary IP, will offer the following advantages:


-- Provide users with a seamless, highly mobile, high speed internet connection.
-- Use of UHF spectrum in conjunction with “Space-Time” technology will allow users operation at long range (up to 10miles) under very limited line of sight conditions, reducing the number of base stations per coverage area.
-- Allow a high speed (downlink data rates from 200Kb/sec up to 1.53MB/sec) connectivity over narrow band channels.
-- The utilization of narrow band channels in combination with proprietary segmented antenna technology allows clustering of up to 25,000 on-line subscribers per single base station.

Other companies in the “wi-fi” (wireless fidelity) sector utilize the 802.11 spectrums and are slated to also utilize the 802.16 as the new “WiMAX” standard, which is limited by distance, bandwidth and user terminals capacity. Currently, “wi-fi” standards are limited severely by their lack of spectrum and end users access to high-speed data rates supplied by the POP (Point Of Presence). 802.11 carries a maximum data rate of 54Mb/sec, per single user on a WLAN (wireless local area network) but degrade at a rate of 50% as another user is added to the limited network.

The actual data rate for the internet connection for the 802.11 standards is also limited to the internet connection which it receives from the POP and is usually around 1.5Mb/sec to 3Mb/sec on a cable or DSL connection, making it impossible to obtain anything higher than the 3Mb/sec wireless internet connection if more than one user is utilizing the same network. Not only is the data transfer severely cramped if more than one user is on a network, but the distance in which the 802.11a networks function is limited to a maximum range of 1,000 feet (in a clear, outdoor environment). Since the 802.11 standard uses radio waves it has a very difficult time traveling through brick, wood and metal walls in a home or office setting and generally average about a range of 60-150ft for a data connection.

By first quarter 2005, WiFi Wireless will begin to offer orientation demos to all qualified distributors.

About WiFi Wireless, Inc.

WiFi Wireless Incorporated (OTC: WFIW). WiFi Wireless provides an expanded network technology to the traditional wi-fi (802.11) system. Currently, wi-fi (802.11) systems are confined to “Hot Spot” locations within a limited radius. WiFi Wireless focuses on “Space-Time” technology applications by using current UHF frequencies that enables WiFi Wireless’ hardware to provide 10 miles of service from the POP Point Of Presence, rather than the conventional wi-fi (802.11) retail space application. WiFi Wireless utilizes a base station antenna with a capacity that will allow up to 25,000 simultaneous users without degradation in performance. Business franchises can now be part of the WiFi Wireless network by providing a POP site in one central location, instead of multiple, costly, small networks at a fraction of the price of current T-Span charges affiliated with standard “Hot Spot” networks.

Safe Harbor

This press release and oral statements made from time to time by representatives of the Company may contain “forward-looking statements” concerning the Company’s financial outlook, future expectations, financial and operating projections, plans and strategies, its share repurchase program and the trading markets for its securities. These forward-looking statements are subject to a number of risks and uncertainties. The Company wishes to caution readers that certain factors may impact the Company’s actual results and could cause results for subsequent periods to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. Such factors include, but are not limited to (i) the Company’s substantial capital requirements and debt, (ii) market conditions, (iii) the Company’s dependence on demand for wireless communications and related infrastructure, (iv) competition in the communications tower industry, including the impact of technological developments, (v) consolidation in the wireless industry, (vi) future regulatory actions, (vii) conditions in its operating areas and (viii) management’s estimates and assumptions included in the Company’s 2004 Outlook. These and other important factors are described in more detail in the “Risk Factors” and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s SEC filings and public announcements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

Contact Information

Investor Relations Department

Investor Relations Department

WiFi Wireless, Inc.

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