EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Page 1 of 2
COMPANY CONTACTS:
Xxx Xxxxxxx, Vice President & Chief Financial Officer
P-COM, INC. ENTERS INTO AGREEMENTS FOR $40 MILLION
OF NEW EQUITY INVESTMENTS
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CAMPBELL, CA - June 21, 1999 - P-Com, Inc. (NASDAQ National Market: PCMS)
announced today that it has entered into seven separate agreements to sell a
total of 10,067,958 shares of newly issued common stock for an aggregate of $40
million. The Company priced the shares at a 7.5% discount to the 15-day average
of its closing sale prices for the period ended June 17, 1999, the day P-Com's
Board of Directors approved the transaction. These transactions are scheduled
to close on June 22, 1999.
The State of Wisconsin Investment Board is the lead investor, acquiring
5,033,979 additional shares of common stock for $20 million. This, together
with previous open market purchases, increases the State of Wisconsin Investment
Board's investment in P-Com from approximately 6% of the total outstanding
shares of the Company's common stock at December 31, 1998 to approximately 13.5%
today.
"The State of Wisconsin Investment Board is pleased to lead this investment
in P-Com's people and products," said Xxxx Xxxxxx, the State of Wisconsin
Investment Board's Investment Director of Small Company Stocks. "The potential
opportunity for all of us as partners going forward looks tremendous."
The Xxxxxxxx Fund, Baystar Capital, L.P. and investors led by Xxxxxx
McBaine Capital Management agreed to invest $10 million, $7.5 million and $2.5
million, respectively, for 2,516,990, 1,887,742 and 629,247 shares of common
stock, respectively.
PaineWebber Incorporated served as the Company's placement agent on these
transactions. The Company also agreed with the seven investors to register their
newly purchased shares with the SEC for resale.
"These funds will enable the Company to aggressively launch the production
effort for our new point-to-multipoint broadband access product line," said
Xxxxxx X. Xxxxxxx, the Company's Chairman of the Board and Chief Executive
Officer.
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P-COM, INC., ENTERS INTO AGREEMENTS FOR $40 MILLION
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P-Com, Inc. develops, manufactures, and markets network access systems for
the worldwide wireless telecommunications market. The point-to-point, spread
spectrum, and point-to-multipoint radio links provided by P-Com are designed to
satisfy the network requirements of cellular and personal communications
services, corporate communications, public utilities and local governments. In
addition, P-Com provides comprehensive network services including system
planning, program planning and management, path design, and installation.
Statements in this release that are forward looking involve known and
unknown risks and uncertainties, which may cause the Company's actual results in
future periods to be materially different from any future performance that may
be suggested in this release. Such factors may include, but are not limited to,
reliance upon subcontractors, fluctuations in customer demand and commitments,
both in timing and volume, introduction of new products, commercial acceptance
and viability of new products and expenses associated therewith, cancellations
of orders without penalties, pricing and competition, the Company's ability to
have available an appropriate amount of production capacity in a timely manner,
the ability of the Company's customers to finance their purchases of the
Company's products and/or services, the timing of new technology and product
introductions, the risk of early obsolescence, and the pending stockholder class
action lawsuits. Further, the Company operates in an industry sector where
securities values are highly volatile and may be influenced by economic and
other factors beyond the Company's control, such as announcements by competitors
and service providers. Reference is made to the discussion of risk factors
detailed in the Company's filings with the Securities and Exchange Commission,
including its reports on Form 10-K and 10-Q.
P-Com, Inc., with world headquarters in Campbell, California, USA and
offices in Florida, New Jersey, Virginia, the UK, Italy, France, Germany,
Poland, Mexico, Dubai and China, is an ISO 9001 certified company. For
additional information, contact P-Com at:
P-Com, Inc. . 0000 X. Xxxxxxxxxx Xxxxxxxxx . Campbell, CA 95008 . USA
TEL: (000) 000-0000 . FAX: (000) 000-0000
xxx.x-xxx.xxx
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