Proxim Agrees to Pay Symbol Approximately $23 Million in Patent Case



HOLTSVILLE, N.Y. -/16 September, 2004 - Wi-Fi Technology News/- Symbol Technologies, Inc., (NYSE:SBL), The Enterprise Mobility Company?, announced that it has settled its patent litigation with Proxim Corporation relating to wireless local area network (WLAN) technology. According to the settlement, Proxim will pay Symbol $22.75 million for previous sales of infringing products.

Proxim will also pay Symbol a royalty fee for future sales of WLAN products covered by Symbol patents for the life of those patents, as well as transfer certain patents and patent applications to Symbol. Symbol values these royalty payments and patent transfers as the equivalent of a six percent royalty rate.

On August 4, 2004, a judgment was entered in the United States District Court for the District of Delaware awarding Symbol $23 million in damages, plus $3 million in interest from Proxim. The judgment followed a jury award in Symbol's favor on September 12, 2003. The award was based on an assessment of a six percent royalty for sales of infringing products.


"We are extremely pleased with the outcome of this precedent-setting litigation, which has validated Symbol's wireless intellectual property and confirmed Symbol's entitlement to a six percent royalty on these patents," said Peter Lieb, Symbol senior vice president and general counsel. "We believe Symbol's intellectual property is an important corporate asset and this settlement agreement is another example of Symbol's superior track record in reaching favorable results in defending that intellectual property."

Under the terms of the settlement agreement, Proxim will make a series of payments to Symbol, beginning on September 30, 2004.

About Symbol Technologies

Symbol Technologies, Inc., The Enterprise Mobility Company?, manufactures and services enterprise mobility systems, delivering products and solutions that capture, move and manage information in real time to and from the point of business activity. Symbol enterprise mobility solutions integrate advanced data capture products, radio frequency identification technology, mobile computing platforms, wireless infrastructure, mobility software and services programs under the Symbol Enterprise Mobility Services brand. Symbol enterprise mobility products and solutions are designed to increase workforce productivity, reduce operating costs, drive operational efficiencies and realize competitive advantages for the world's leading companies. More information is available at http://www.symbol.com.