InnerWireless And Johnson Controls Agree To Jointly Develop, Market and Deploy In-Building Wireless Technologies Via New Strategic Alliance

InnerWireless Raises $12 Million in Series B Round

RICHARDSON– Texas – March 10, 2004 – InnerWireless, Inc., a turnkey in-building wireless distribution systems company, has formed a strategic alliance with Johnson Controls, Inc., the global leader in facility management and control, to offer an in-building wireless distribution system that provides complete wireless coverage for a full range of voice and data services. This innovative technology, the InnerWireless wireless distribution system, is installed once, then can be modified and expanded without intrusive, costly infrastructure changes.

Installed in commercial office buildings, campuses, shopping malls, hospitals, convention centers, parking structures – any institution or commercial enterprise – the InnerWireless system helps eliminate dead signal spots and facilitates the expanding number of wireless applications and devices. These include wireless LANs, personal communications services (PCS), cell phones, PDAs and two-way radios for maintenance and security.

The InnerWireless system will also enable wireless building automation in conjunction with the Johnson Controls Metasys® building management system. The wireless infrastructure will help the Metasys system access data from multiple enterprise applications and assimilate the data into meaningful information that helps busy managers operate more efficiently.

This technology will help customers seamlessly and cost effectively integrate fire and security systems and other building controls, whether they are in one building or spread across a corporate campus. The two companies expect the InnerWireless technology to become a necessary part of a facility’s infrastructure, providing building owners with solutions that simplify operations, reduce costs and improve efficiencies.

Healthcare institutions and commercial real estate facilities have shown the greatest initial interest in the wireless distribution system. Comer Children’s Hospital, a new facility that is part of the University of Chicago Hospitals system, plans to use the technology to improve access to patient medical information through PDAs or other handheld devices. This application will assist healthcare providers in making the best possible decisions regarding patient care.

InnerWireless technology uses a single broadband infrastructure comprised of passive antennae components installed throughout a building. Using patented and patent pending technology, InnerWireless' components transmit radio signals to distributed antennae across each floor enabling greater coverage than previously available with passive systems. The system also provides engineered signal containment, which helps prevent wireless “signal” leakage outside the building.

“The InnerWireless infrastructure gives its in-building users access to information anywhere, anytime, and allows them to act on that information through the system. It creates mobile productivity and enables numerous wireless applications in buildings,” said Ed Cantwell, president and chief executive officer of InnerWireless. “We’re excited to be working with Johnson Controls, the leader in building controls and infrastructure, to offer this technology to customers around the world.”

As part of the strategic alliance agreement, Johnson Controls and InnerWireless also signed a joint development agreement for development initiatives related to the InnerWireless system. Additionally, Johnson Controls is an equity investor in InnerWireless, a privately held company that is based in Richardson, Texas.

Johnson Controls was a lead investor in a Series B financing that InnerWireless recently closed. To date, InnerWireless has raised a total of $38 million in equity capital. The recent $12 million Series B financing was led by Johnson Controls, Rho Ventures, and Sevin Rosen Funds. Existing investors Technology Associates Management Company (TAMC), Massey Burch Capital Corp., HO2 Partners, Genesis Campus, and STARTech were also significant participants in the financing. The financing is projected to fund the expansion of InnerWireless’ business.

About InnerWireless
InnerWireless Inc., a leading in-building wireless systems company, provides turnkey wireless distribution systems for corporate enterprises, Class A office buildings, healthcare facilities, high-traffic public spaces and campuses. Its future-proof InnerWireless system, based on the company’s patented technology, converges multiple wireless voice and data services over a single broadband infrastructure, supporting the rapidly growing number of business-critical wireless applications, services and devices. A single InnerWireless system provides consistent coverage for current and future technologies and protocols, including wireless LAN, GSM, TDMA, CDMA, GPRS, EDGE, EvDO, 3G, iDEN®, paging, two-way radio and emergency services. InnerWireless, a privately held company based in Richardson, Texas, in the heart of Telecom Corridor®, can be found on the Web at www.innerwireless.com