CellStar Adds Three New Sierra Wireless Products for Distribution


CellStar Corporation (NASDAQ:CLST), a value-added wireless logistics services leader, and Sierra Wireless (NASDAQ: SWIR - TSX: SW) today announced that CellStar will add three new products to its Sierra Wireless product lineup for distribution in North America.

CellStar will begin distributing Sierra Wireless’ newest additions to its AirCard® product line – the AirCard 580 for use on CDMA 1x EV-DO networks and the AirCard 775 for use on EDGE networks—both of which deliver high-speed wireless data connectivity to road warriors. In addition, the company will distribute the Sierra Wireless MP 775 GPS, a rugged in-vehicle modem for use in public safety, field service, and transportation industries.

“Our customers demand world-class, cutting-edge products for business customers. These three mobile solutions from Sierra Wireless will help meet the growing demand for robust, on-the-road wireless data access,” said Maria Hernandez, vice president, product development for CellStar.

“CellStar provides significant value to our company, as they bring our products to their extensive U.S.-wide network of resellers and dealers,” said Dan Schieler, senior vice president, worldwide sales for Sierra Wireless. “Because of their strong industry relationships and turnkey offerings, the company delivers quality product solutions that meet the needs of today’s enterprise customer.”

CellStar also distributes Sierra Wireless’ AirCard 555 CDMA 1x PC Card and its Voq Professional Phone™, a Windows Mobile™ based Smartphone for use on global GSM/GPRS networks.

AirCard 580
The AirCard 580 wireless wide area network card operates on a CDMA2000 1x EV-DO network. Offering average user speeds of 300 to 500 kilobits per second (kbps), it was built for mobile users that require instant, high-speed access to mission-critical enterprise applications such as sales force automation and customer relationship management tools, as well as streaming audio, video and the Internet. The product enables mobile professionals to extend their corporate experience outside the office with “always on” access in a Type II PC Card format, improving productivity and giving enterprise users a vital competitive advantage while traveling or meeting with customers.

AirCard 775
With quad-band operation that enables worldwide roaming, the AirCard 775 provides anywhere-access to EDGE and GSM/GPRS networks. About the size of a credit card, the AirCard 775 allows for wireless access to the Internet and corporate networks at speeds up to three times faster than on GPRS networks. Ideal for mobile professionals who are heavy data users, the AirCard 775 allows users to transfer data at speeds averaging between 100 and 130 kbps, with bursts up to 200 kbps.

The MP 775 GPS is designed for use in public safety, field service, and transportation industries and includes an integrated GPS module for vehicle tracking. Built for demanding environments and worldwide connectivity, the quad-band MP 775 GPS operates in extreme temperatures (-40C to +75C) and meets U.S. Military and Society of Automotive Engineers (SAE) J1455 specifications for vibration, shock, drop, splash, and humidity.

Resellers interested in purchasing Sierra Wireless products from CellStar, please
call 1-800-530-4664.

About Sierra Wireless
Sierra Wireless is a leader in delivering highly differentiated wireless solutions that enable our customers to improve their productivity and lifestyle. Sierra Wireless develops and markets the AirCard, the industry-leading wireless PC card line for portable computers; embedded modules for OEM wireless applications; the MP line of rugged vehicle-mounted connectivity solutions; and Voq, a line of mobile phones with easy-to-use, secure software solutions for mobile professionals. For more information about Sierra Wireless please visit www.sierrawireless.com.

Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply conditions, channel and end customer demand conditions, revenues, gross margins, operating expenses, profits, and other expectations, intentions, and plans contained in this press release that are not historical fact. Our expectations regarding future revenues and earnings depend in part upon our ability to successfully develop, manufacture, and supply products that we do not produce today and that meet defined specifications. When used in this press release, the words "plan", "expect", "believe", and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in the wireless data communications market. In light of the many risks and uncertainties surrounding the wireless data communications market, you should understand that we cannot assure you that the forward-looking statements contained in this press release will be realized.

About CellStar Corporation
CellStar Corporation is a leading global provider of value-added logistics services to the wireless communications industry, with operations primarily in the Asia-Pacific, North American and Latin American regions. CellStar facilitates the effective and efficient distribution of handsets, related accessories and other wireless products from leading manufacturers to network operators, agents, resellers, dealers and retailers. CellStar also provides activation services in some of its markets that generate new subscribers for wireless carriers. For the year ended November 30, 2003, the Company generated revenues of $1.8 billion. Additional information about CellStar may be found on its Web site at www.cellstar.com.

Forward Looking Statements
This news release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. A variety of risk factors, including the Company's ability to implement its business strategies, to maintain its channels of distribution, continue to secure an adequate supply of competitive products on a timely basis and on commercially reasonable terms, improve its operating margins, secure adequate financial resources, maintain an adequate system of internal control, comply with debt covenants, and continually turn its inventories and accounts receivable, as well as changes in foreign laws, regulations and tariffs, new technologies, system implementation difficulties, competition, handset shortages or overages, terrorist acts, a decline in consumer confidence and continued economic weakness in the U.S. and other countries in which the Company does business and other risk factors, are discussed in the Company's Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Any one, or a combination of these risk factors could cause CellStar's actual results to vary materially from anticipated results or other expectations expressed in the Company's forward-looking statements.

For Media Enquiries:

Sharlene Myers
Sierra Wireless
Phone: +1 (604) 232-1445
Email: [email protected]

Alicia Thomas
Phone: 972-462-2730
Email: [email protected]

Sherrian Gunn
Phone: 972-466-5031
Email: [email protected]