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Attention Business/Telecommunications Editors: CSI Wireless - Growth Strategies 3-Day Summit Focuses on Promising Wireless Markets Toronto Stock Exchange Symbol: CSY CALGARY, Aug. 17 /CNW/ - (TSE:CSY): CSI Wireless Inc, a leading provider of advanced wireless and GPS technologies for high growth automotive, commercial, and consumer markets has provided a status report on the successful integration of recently acquired Wireless Link Corporation. During a recent 3-day management summit, the Company refined its growth strategies to capitalize on the immense new markets emerging in the wireless products sectors. "This was the most exciting management summit that I have ever attended," said Stephen Verhoeff, President & CEO of CSI Wireless. "The merger with Wireless Link Corporation has given us significantly more growth potential than we expected. Prior to the merger, we were seldom asked to quote in quantities exceeding 100,000 units. Because we develop and own wireless technology, as a combined entity, we are now being solicited to quote on projects requiring millions of units." Targeted High Growth Markets As presented at the Annual General Meeting of Shareholders, CSI Wireless is determined to become a powerful force in a number of high growth, multi- billion dollar wireless and wireless-GPS markets. The following provides an overview of the top five high growth markets targeted by CSI Wireless: - Automotive and Consumer Telematics; - Fleet and Asset Management; - Fixed Telemetry; - Wireless Local Loop Telephone Terminals; and - High Bandwidth Products for Mobile Computing. Automotive and Consumer Telematics As a combined entity, the automotive opportunity for CSI Wireless has been substantially expanded. In addition to its patented AVL-1 automotive DGPS antenna coupler the Company has now become a significant supplier of wireless technology to the following automotive application markets: - Telematics; - Internet-in-the Vehicle; - Vehicle Tracking; and - Vehicle Security. Consultancy group Strategy Analytics projects the world market for in-car telematics will grow from $7.7 Billion USD by end 2000, to $24.3 Billion USD by 2006, with North America accounting for $9.4 Billion of that market. By integrating wireless and GPS, this technology can be used to protect against vehicle theft, to control car door locks and engines from remote locations or to monitor whether drivers or equipment users are traveling outside of customer designed geographic regions. The Company's high bandwidth TDMA technology will allow the delivery of Internet services to the vehicle. The Company has a development/supply agreement with LoJack Corporation ("LoJack") for an advanced low-cost telematics product. LoJack has been a telematics pioneer since 1985 and has successfully developed and marketed wireless stolen vehicle recovery systems for consumer and commercial vehicles in the US and 18 other countries. Fleet & Asset Management Other opportunities for GPS and Wireless integration are products that allow companies to remotely monitor their assets using the existing nation- wide cellular network to send and receive business-critical data. CSI Wireless offers AssetVisionO a complete wireless and GPS communications solution for remote asset management and "drop-in" cellular modem modules for easy integration by OEM developers into existing mobile and fixed asset management applications. Each of these applications requires the combination of GPS technology with two-way wireless data communications. Customers of CSI Wireless in this market segment today include large OEM's in the automotive, commercial trucking, heavy equipment, and rental car and security equipment industries. Strategis Group projects that wireless location services will be a $3.9 billion market in 2004 with commercial Automatic Vehicle Location (AVL) revenues at $1.5 billion annually by 2003. Customers of CSI Wireless in this market segment today include large OEM's in the automotive, commercial trucking, heavy equipment, and rental car and security equipment industries. The Company is currently developing AssetVision(TM) GSM an international fleet and asset management solution to address the needs of its global partners. Fixed Telemetry CSI Wireless' Fixed Telemetry products target the high growth automatic meter reading (AMR) market segment and security system and equipment monitoring. With increasing labor costs and utility deregulation the company anticipates that eventually in excess of 200 million meters will be wirelessly read. Wireless telemetry for security systems provides a more secure method of tying remote sites to a central monitoring center. Wireless Local Loop (WLL) CSI Wireless is also targeting growth opportunities in fixed wireless applications with the development of wireless telephone terminals. These terminals will form part of a complete solution in low cost telephone services for developing countries. Wireless telephone terminals are used where it is uneconomical to extend standard copper wire to provide basic telephone services. The Company is near production of its RFS-48 WLL terminal; IS-136 compliant; it supports voice, data, and fax, and operates at 400mhz or 800mhz. The company is currently in discussions with US and International distributors of wireless telecommunications products for consumers and businesses, and major telecommunications equipment manufacturers for fixed wireless applications. Next Generation Wireless Technologies CSI Wireless is creating patent pending multi-protocol DSP-based wireless technology, for delivering low and high bandwidth data for the many mobile and fixed telemetry applications, which will include mobile computing (handheld and notebook PC's) and internet-in-the-vehicle. Much of the technology necessary for this core has already been developed by CSI Wireless and is being used in one of its many current products. Management Team - post merger The management team leaders, post merger, for the combined company are: Stephen Verhoeff President & CEO Hamid Najafi Chief Technology Officer Brian Hamilton Executive Vice President & CFO Michael Brower Senior Vice President, Sales & Marketing David Kinley Vice President, Manufacturing Operations & Quality Control Research & Development CSI Wireless' engineering group has pooled its resources under Dr. Najafi, CSI Wireless Chief Technology Officer. Research & Development efforts have been re-prioritized to be consistent with accessing these targeted billion dollar wireless opportunities. Investment in Research & Development has been increased to fund product development and integration as the Company pursues these growth markets. CSI Wireless views its Next Generation wireless product to be potentially revolutionary and has prioritized accelerating the development program. Sales & Marketing "CSI Wireless is in the process of expanding its Sales & Marketing organization to complement these high growth opportunities", commented Michael Brower, Senior Vice President of Sales & Marketing. "Additional sales and marketing professionals will enable us to sell further into our existing vertical markets and define products for our targeted high growth segments". Special Warrants - Final Prospectus Filed To complete its $2.4 million special warrant financing which closed on June 12, 2000, CSI Wireless has filed its final prospectus with the Ontario and Alberta securities commissions, dated August 15, 2000. Strong Balance Sheet With the $2.6M Rights Offering, the recent closing of a $2.4M Special Warrants financing, and an increase in the Company's operating line of credit to $7M, CSI is well positioned to take advantage of these high growth markets. CSI Wireless is successfully integrating its financial, manufacturing, engineering, and Sales & Marketing operations. Cost sharing and resource consolidation will produce cost savings to help offset increased R&D investment. "With the increased investment in R&D and Marketing & Sales, we anticipate posting losses for the next several quarters," stated Brian Hamilton, CSI Wireless' Chief Financial Officer. "The acquisition also added a large amount of goodwill that will impact earnings going forward, but it is important to look at the cash flows and EBITDA." Backlog Reaches $13.9 Million As of July 28, 2000 CSI Wireless's backlog was $13.9 million. Second Quarter Results The Company anticipates reporting its second quarter results next week. CSI Wireless expects to report losses for the second quarter and remaining quarters of 2000, primarily as a result of the increased strategic investment in research & development, sales & marketing, and the associated goodwill costs of the acquisition of Wireless Link. A conference call for investors and analysts will follow the release of the second quarter results. About CSI Wireless With offices in Calgary, Silicon Valley, and Phoenix, CSI Wireless provides innovative, cost-effective, wireless and high accuracy GPS communications products for mobile and fixed applications in both commercial and consumer markets. Through the integration of GPS and wireless, CSI is actively pursuing the emerging high growth markets with mobile-location solutions for Fleet Management, Asset Tracking, Consumer Telematics, and Mobile computing applications. The Company owns a number of patents and intellectual property relating to a variety of wireless networks and GPS technology. CSI has licensed its cellular technology to GPS, cellular handset, and chipset manufacturers. The common shares of CSI Wireless trade on The Toronto Stock Exchange under the trading symbol "CSY", with approximately 12.75 million shares outstanding. Forward Looking Statements The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward- looking statements are subject to numerous risks and uncertainties, certain of which are beyond CSI Wireless's control, including: the impact of general economic conditions, industry conditions, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. CXSI Wireless's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceed, that CSI Wireless will derive therefrom. %SEDAR: 00004587E -30- For further information: please contact: Cory Pala, Investor Relations., E-vestor Communications Inc., [phone], [phone] Fax, E-mail: [e-mail]; Stephen Verhoeff, President & CEO, CSI Wireless Inc., [phone], [phone] Fax, Email: [e-mail], www.csi-dgps.com; Michael Brower, Senior Vice President, Sales & Marketing, CSI Wireless Inc., [phone], x149, [phone] Fax, E-Mail: [e-mail]; To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw. www.wireless-link.com