Proxim Wireless Modifies Lending Relationship

For Further Information Contact:

Proxim Wireless

David Renauld

Vice President, Corporate Affairs

(413) 584-1425                                                                                                                                                        

ir@proxim.com

Proxim Wireless Modifies Lending Relationship

Silicon Valley, December 17, 2009 – On December 11, 2009, Proxim Wireless Corporation (OTCQX: PRXM) received a countersigned document from its lender Bridge Bank, National Association modifying the lending relationship.  The primary terms of that modification agreement are summarized as follows:

• Bridge Bank waived financial covenant defaults that had arisen during the third quarter of 2009
• The required asset coverage ratio (being a ratio of cash plus eligible domestic and foreign accounts receivable to indebtedness to Bridge Bank) was increased to 1.75 to 1.00 from 1.50 to 1.00
• The financial covenant relating to performance to planned revenue was eliminated
• The financial covenant relating to performance to planned net income was changed to a quarterly covenant to be first tested for the quarter ended March 31, 2010
• A new financial covenant was added requiring Proxim’s EBDA (net income plus depreciation and amortization) net loss for the quarter ending December 31, 2009 to be no greater than $(350,000)
• Bridge Bank accepted a revised 2009 operating plan for Proxim and received a $25,000 covenant reset fee

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