Wavecom reports 2001 year-end revenues of €322.7 million

Annual Revenues Increase 392% - Q4 Revenues Increase 241%
Issy-les-Moulineaux, France-January 23, 2002
Wavecom S.A. (NASDAQ: WVCM; Nouveau Marche: 7306), a leading developer of digital wireless standard modules (WISMO), today announced revenues for the fourth quarter and full year ended December 31, 2001. All revenues are unaudited and reported in accordance with US GAAP.

For the quarter ended December 31, 2001, Wavecom reported total revenues of €105.3 million compared with €30.9 million in the same period last year, an increase of 241%. Fourth quarter product revenues rose 254% to €104.9 million versus €29.6 million a year ago. Sequentially, product revenues increased 17.9% to €104.9 million from €89.0 million in the third quarter of 2001. Wavecom's revenue growth for the period reflects strong sales into Asia and the impact of seasonal sales ahead of the Chinese New Year. Total product shipments grew to 1.4 million units in the fourth quarter from 1.1 million units in the previous quarter of 2001. Product shipments for all of 2001 totaled 4.0 million units compared to 580,000 units in 2000.

Total revenues for the full year ended December 31, 2001 increased 392% to €322.7 million compared with €65.6 million in 2000. Product revenues for the year were €317.6 million compared with €63.1 million for the full year 2000, an increase of 403%.

Revenues for the fourth quarter of 2001 by geographic region were as follows: Asia-Pacific: 86.3%; Middle-East and Africa: 12.8%; Americas: 0.9%. Product revenues by target market for the fourth quarter of 2001 were: telephony: 74.3%; multimedia: 7.8%; telemetry: 4.8%; automotive: 2.2%; indirect sales: 10.9%.

"We are pleased to report another quarter and full year of strong revenue growth as Wavecom continued to produce at maximum capacity," said Michel Alard, the Company's chairman. "We are confident in our outlook for 2002 as we successfully build on new and existing client relationships in all of our target markets and key geographic regions. In addition to the WISMO Pac, which we launched during the fourth quarter, Wavecom's product pipeline is robust and we plan to introduce several new products in 2002, including a CDMA version of the WISMO," he added.

Backlog declined to €129 million at December 31, 2001 from €134 million at September 30, 2001, reflecting the strong push to deliver product to our Asian customers by year-end, in preparation of the Chinese New Year. Management currently estimates that the backlog should cover 4-5 months of shipments with a concentration in the later months as customer deliveries are lower just after the Chinese New Year.

Wavecom estimates that full-year revenues for the year 2002 will continue to grow substantially as the Company introduces new products and as its customers continue to gain market share, particularly in China but also in other regions. Furthermore, as long as revenues are driven primarily by sales into the Chinese market, the Company expects to continue to see seasonality related to the Chinese New Year, with lower sales in the early part of the calendar year and a stronger second half as customers launch new products. Consequently, management expects that first quarter revenues will be down sequentially compared to the fourth quarter, but expects subsequent quarters of the 2002 fiscal year to show sequential growth. Wavecom's long-term strategic plans include further developing and penetrating market opportunities outside of Asia.

Full financial results will be announced on February 19, 2002, after the markets close.