Novatel Wireless Reaffirms Fourth Quarter Financial Guidance

SAN DIEGO, Jan 4, 2005 (BUSINESS WIRE) -- Novatel Wireless, Inc. (Nasdaq:NVTL), a leading provider of wireless broadband access solutions, is reaffirming its financial guidance for its fourth quarter ended December 31, 2004.

Revenues for the fourth quarter are expected to grow to $33 to $34 million, in line with previous guidance, representing an over 215% sequential increase over $10.6 million reported in the same period last year and bringing annual 2004 revenues to the range of $103 to $104 million. Net income for the fourth quarter is expected to grow to approximately $0.17 per diluted share -- the highest in the Company's history and also in line with previous guidance. This compares to a net loss applicable to common stockholders of $2.1 million or $0.23 per basic and diluted share in the prior year period. The Company also expects to report strong positive cash flow from operations for the fourth quarter.

"Sales growth was driven primarily by strong shipments across all technologies to new and existing customers and channels, especially our UMTS products in Europe," commented Peter Leparulo, Novatel Wireless' Chief Executive Officer. "In December, we began shipping our new 3G products to two of the world's largest carriers and expect new customers to play an important role in our continued growth in 2005. Overall, we are very optimistic for the coming year and we currently expect a continuation of strong opportunities for top line growth and bottom line profitability based on a more diversified portfolio of products and customers. We also expect to announce new customer wins with our existing product portfolio, next generation technologies and our new Ovation line of multimedia application consoles."

Novatel Wireless will host a conference call for analysts and investors to discuss its quarterly results at 5:00 p.m. ET on February 10, 2005. A live Web cast of the conference call will also be accessible from the "Investor Relations" section of the Novatel Wireless Web site (www.novatelwireless.com). Following the live Web cast, an archived version will be available on the Novatel Wireless Web site.

ABOUT NOVATEL WIRELESS, INC.

Novatel Wireless, Inc. is a leading provider of wireless broadband access solutions. Novatel Wireless' Merlin(TM) PC Cards, Expedite(TM) Embedded Modems, Freedom Box(TM) Ruggedized Modems, MobiLink(TM) Communications Software Suite, Ovation(TM) 3G Multimedia Application Consoles and Conversa(TM) Software Suite enable high-speed wireless access to personal, corporate and public information. The Company delivers innovative 3G solutions to operators, distributors and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information on Novatel Wireless visit www.novatelwireless.com (nvtlg)

(C) 2005 Novatel Wireless. All rights reserved. The Novatel Wireless logo, Merlin, Merlin U630, Expedite, Freedom Box, MobiLink, Ovation, and Conversa are trademarks of Novatel Wireless, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

Some of the information presented in this release, is forward-looking in nature within the meaning of the Private Securities Litigation Reform Act of 1995. Although Novatel Wireless believes that the expectations reflected in such forward-looking statements are reasonable, it cannot guarantee future results, performance or achievements. Certain factors that could cause actual results to differ materially from Novatel Wireless' expectations are set forth as risk factors in the Company's SEC reports and filings. Included among these factors are the future demand for wireless access to data, the future growth of wireless wide area networking, changes in wireless transmission standards and technologies, continued acceptance of and market demand for Novatel Wireless' products, dependence on intellectual property rights, dependence on a small number of customers, and the Company's general business and strategy, including plans and expectations relating to technology, product development, strategic relationships, customers, manufacturing, service activities, international expansion, sales initiatives and gross margin and cost containment initiatives. These factors, as well as other factors detailed from time to time in the Company's SEC reports and filings, could cause actual results to differ materially. Forward-looking statements are not guarantees of performance. Novatel Wireless assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: Novatel Wireless

Novatel Wireless
Dan Halvorson, 858-320-8821
www.novatelwireless.com
or
The Blueshirt Group, Investor Relations
Chris Danne, 415-217-7722
chris@blueshirtgroup.com
Rakesh Mehta, 415-217-7722
rakesh@blueshirtgroup.com

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