San Jose, CA, December 5, 2006–Proxim Wireless Corporation, a global pioneer of end-to-end solutions in Wi-Fi mesh, WiMAX, WLAN, and wireless backhaul and wholly owned subsidiary of Terabeam, Inc. (NASDAQ: TRBM), today announced that Max Telecom Ltd., a newly established telecom operator offering a full spectrum of telecommunication services, has selected Proxim’s WiMAX product line and network management system to build a broadband wireless network serving Bulgaria’s domestic and business customers. Bulgaria, which is located in Southeastern Europe, has a population of nearly eight million people.

Max Telecom is deploying Proxim Tsunami MP.16 WiMAX base stations and subscriber units first in major cities like Sofia and Plovdiv, then country-wide in 2007. The company plans to offer its customers a broad portfolio of services that support the “triple play” of Internet access, voice-over-IP (VoIP), and video streaming. To help install and support the network, Max Telecom is working with VIDEOMAX AVS, a Proxim Wireless Platinum Partner and leading provider of end-to-end broadband solutions for the Bulgarian market.

“Proxim Wireless and VIDEOMAX AVS are helping us bring to the Bulgarian market a new dimension in fast data access by replacing existing expensive links and providing customers with an inexpensive upgrade from dial-up to broadband,” said Krassimir Stoitcheff, Chief Executive Officer, Max Telecom. “Proxim’s WiMAX TDD-based products and network management system offer us the best price/performance available and an easy upgrade path to 802.16e when it is available. We are pleased to have Proxim as our partner as we offer our customers, who will no longer be constrained by the limitations of cable, faster and more reliable Internet access and other services at significantly reduced prices.”

Lionel Chmilewsky, Senior Vice President, Proxim International, commented, “Max Telecom’s deployment of this new network, based on our award-winning WiMAX products and network management, will offer Bulgaria’s citizens and businesses a welcome alternative to their current choices for Internet access and, over time, voice-over-IP and video streaming. We are pleased to work with Max Telecom to deliver this cost-effective solution and to drive WiMAX technology into the mainstream.”

The Proxim Tsunami MP.16 3500 product line is compliant with the IEEE 802.16d-2004 WiMAX standard. It operates within the 3.4-3.6 GHz frequency band and offers time-division duplex (TDD) method, which is optimal for asynchronous traffic patterns as typically experienced by service providers. The system is comprised of base stations and subscriber units in integrated, outdoor form factors for easy installation. With its pico-cell architecture, the system is ideal for residential last mile access. The Tsunami MP.16 was awarded a 2006 Product Innovation Award by Frost & Sullivan for “truly innovative WiMAX solutions.”

Proxim Wireless is the only vendor in the industry to develop both a TDD base station and a subscriber unit based on the Intel® PRO/Wireless 5116 Broadband Interface, assuring its customers the maximum possible system compatibility and interoperability.

Proxim Tsunami MP.16 3500 also offers a scalable approach to system deployment, beginning with entry-level, single-sector base stations and growing into six-sector macro base stations with GPS synchronization. This, coupled with the availability of other technologies from within Proxim’s industry-leading product portfolio, not only lowers the barrier to deploy WiMAX systems for service providers, but also positions Proxim to enable truly scalable broadband wireless networks.

About Proxim Wireless

Proxim Wireless Corporation is a wholly owned subsidiary of Terabeam, Inc. (NASDAQ: TRBM). Proxim Wireless is a global pioneer in developing and supplying scalable broadband wireless networking systems for enterprises, governments, and service providers. From Wi-Fi to wireless Gigabit Ethernet–our WLAN, mesh, point-to-multipoint, and point-to-point products are available through our extensive global channel network, backed by world-class support. Proxim is a Principal Member of the WiMAX Forum and is ISO-9001 certified. Information about Proxim and its products and support can be found at http://www.proxim.com.

About Max Telecom

Max Telecom is a recently-licensed start-up telecommunications company in Bulgaria, which is developing a nation-wide new generation network moving towards the IEEE 802.16e standard for its access network, backed by IP based leading edge core network technology. Max Telecom is able to guarantee the provision of a full range of fast, high quality, reliable and cost effective telecommunication products and services, mobile or fixed. The ambition is to develop a competitive service offering, providing customers high quality, up-to-date services making use of the latest in New Generation Network technology coupled to an advanced billing system (both post and pre pay), and a state-of-the art call centre. More information about Max Telecom can be found at http://www.maxtelecom.bg or contact Plamen Vutov at p.vutov@maxtelecom.bg.

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