2000 CTIA: TRW and Endgate Merge to form Endwave Corp.

TRWAutomotivep. (Sunnyvale, CA) and <%=company%> (Cleveland, OH) have signed a definitive agreement to merge Endgate and TRW Milliwave Inc. to create a new company, Endwave Corp. TRW and Endgate's current shareholders will each have 50% ownership of the offshoot. Both TRW and current Endgate shareholders will contribute cash to Endwave. The new company will be headquartered in Sunnyvale, and maintain design and manufacturing facilities in Sunnyvale, Santa Clara and Diamond Springs, CA.

The union creates a leading supplier of broadband access equipment, including specialized antennas, transceivers and Outdoor Units (ODUs)—units that transmit and receive radio signals and serve as the engines of broadband wireless Internet access systems and cellular backhaul. Endwave products will include transceivers, antennas, and ODUs already being produced by Endgate and TRW, as well as new products to be developed by Endwave. The transaction includes a supply agreement ensuring Endwave's access to TRW's GaAs MMIC foundry.

"Endwave's products will provide the cost-effective wireless solutions customers are demanding for the expansion of e-business," said Edward Keible, president, chief executive officer and director of TRWAutomotiveporation, who will become Endwave president and CEO. "We are strategically positioned in a rapidly growing industry segment, and we begin operations with financial backing from TRW and Endgate and the unparalleled design, engineering and volume manufacturing strengths of both. We also will have a strong customer base that includes Nokia, Hughes Network Systems and other major broadband system developers."

Timothy Hannemann, TRW executive vice president and general manager of the Space and Electronics Group, said that the formation of Endwave advances TRW's strategy to create value through the execution of alliances, new ventures and mergers that bring the company's broad array of communication technologies to the marketplace. "TRW is a world leader in the manufacture of transceiver modules employing gallium arsenide millimeter-wave monolithic integrated circuits (GaAs MMICs) for broadband systems. Our transceiver capabilities fit perfectly with Endgate's products, which include transceivers, antennas, and ODUs—the outdoor units that enable high-speed, wireless telecommunications links. TRW's ownership in Endwave will expand our involvement in the broadband telecommunications marketplace."

Broadband wireless
Broadband wireless technology is expanding rapidly because it is relatively inexpensive, quick to install, and provides data rates up to 155 million bits per second—more than 2,700 times faster than the modems used in today's personal computers. To achieve these data rates, broadband systems operate at radio frequencies above 15 billion cycles per second.

The transceiver technologies for broadband access systems are also used for wireless infrastructure connectivity in cellular networks. As the density of cellular users continues to increase, this trend represents a strong growth opportunity for Endwave.