P-Com Enters Into Agreements for $40 Million of New Equity Investments

Campbell, CA-based P-Com Inc. 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 Kaufmann Fund, Baystar Capital, L.P., and investors led by Gruber 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 served as the company's placement agent on these transactions. P-Com also agreed with the seven investors to register their newly purchased shares with the SEC for resale.