Wavecom provides fourth quarter 2003 revenue update

Issy-les-Moulineaux, France -December 19, 2003

Wavecom SA (Nasdaq: WVCM; Euronext Nouveau Marché: AVM) today announced that it anticipates that its revenues for the fourth quarter of 2003 will be substantially below the previously announced range of €70 million to €78 million. Because a large portion of the quarter’s shipments are concentrated in the final two weeks of the quarter, it is difficult at this point for the Company’s management to predict with any certainty the final level of revenues for the fourth quarter. However, based upon information currently available and barring any unforeseen events, the Company’s management currently estimates that the quarterly revenues will be between €57 million and €63 million.

Wavecom’s management believes that a number of factors are contributing to the lower-than-expected revenues for the fourth quarter. Among these factors are the following:

Certain distributors have reached maximum levels of product inventory allowed under Wavecom’s revenue recognition policy, which is not to recognize revenues on shipments to distributors that hold more inventory than their current needs. A number of distributors in various geographic locations reached maximum inventory levels in December 2003.

Some of Wavecom’s Asian customers experienced market shortages of some key handset components, specifically digital cameras and color LCD screens, and were forced to delay or cancel their own new product introductions. Others have adjusted their marketing and product introduction plans until they have more conclusive information on product sell-through during the Chinese New Year holiday season. In addition, the technical issues which caused the delay of the introduction of the Wismo Pac P5186 in September, resulted in lower production volumes at certain customers. The combination of these situations led to a reduction in shipments of Wavecom products for the fourth quarter.

One of Wavecom’s main non-handset customers has been experiencing major delays in the implementation of a significant project that involves the use of Wavecom modules. Although the project delays are not related to Wavecom’s products, the customer has pushed out its delivery schedule until issues surrounding the project delays are resolved.

Finally, the US dollar continued to weaken against the euro throughout the fourth quarter of 2003, with the greatest decline in the month of December, when the largest portion of Wavecom’s products are expected to be shipped. The backlog of €93 million as of September 30, 2003 was valued at the US dollar versus euro exchange rate of €1 = $1.1597 whereas the closing rate as of December 18, 2003 was €1 = $1.2403 (ECB fixing rate). Wavecom does not anticipate that the dollar will strengthen against the euro during the remainder of December. For reporting purposes, Wavecom translates revenues generated in currencies other than the euro into euros at the average exchange rate each month.

Wavecom will release fourth quarter and full year 2003 results on February 11, 2004. Management will host a conference call February 11, 2004 at 3:00 pm, Paris time followed by a presentation to financial professionals at 5:30 pm in Paris.