Wavecom streamlines its organization to focus on target markets and on wireless silicon development

Substantial headcount reductions expected to help profitability.
Issy-les-Moulineaux, France-January 23, 2004

Wavecom SA (NASDAQ: WVCM; Euronext: AVM; ISIN: FR0000073066) announced that it plans to begin the immediate implementation of a new organizational structure that sharpens the Company’s focus on its two principal target markets and on wireless silicon development. The restructuring is expected to result in a substantial headcount reduction across all functional lines, principally in France and the United States.

Following the restructuring, the Company expects its global workforce to be approximately 560 people, compared to 860 at December 31, 2003 with complete headcount reductions concluded by mid-2004. The amount of charges that will be incurred in connection with the restructuring has not yet been determined, but it is expected that they will be reflected in Wavecom’s reported results of the first and second quarters of 2004.

The new organization is built around four principal units. Two business units will serve as Wavecom’s face to the customer and include sales, business development, marketing, product management, engineering and customer support addressing the two key target markets. One business unit has been established for Personal Communications Devices, or PCDs, (mobile phones, smartphones and PDAs) and another business unit for Verticals (M2M, automotive and wireless local loop). The two other principal units are focused on products and technology: the Solutions product group and the Systems and Silicon product group. The Solutions product group is vertically integrated and is responsible for all aspects from design and development to production of Wavecom packaged solutions, incorporating both hardware and software “system-on-a-chip” development and high-performing core software.

The objective of the new organization is to allow Wavecom to drive growth and profitability, to maintain its place among the leaders in wireless communication, and to concentrate its efforts on innovative technology. Wavecom’s ambition continues to be to establish itself as a major global player in the wireless silicon sector.

Commenting on the changes, Aram Hékimian, Chief Executive Officer of Wavecom stated, “Wavecom’s new leaner organization will allow us to be more focused on our most important customers and markets, while maintaining our ambitious long-term goal of being one of the top three suppliers of wireless technology solutions to the PCDs and Verticals markets.”

Wavecom will release fourth quarter and full year 2003 results on February 11, 2004, at which time more information on Wavecom’s strategy and 2004 perspectives will be provided. 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.