June, 2005

Dear Proxim Partner:

We’re very pleased to announce an agreement for the acquisition of significant assets of Proxim Corporation by Moseley Associates, a private, global and diversified company ranked for the past three years on the Deloitte Technology Fast 500, a ranking of the 500 fastest growing technology companies in North America. This union is designed to make us a stronger company with much greater combined market share and market opportunity. Moseley Group is acquiring all assets of Proxim, including our ORiNOCO, Tsunami and Lynx product lines.

Moseley, the parent company of Microwave Data Systems (MDS), Axxcelera Broadband Wireless, CarrierComm, and Moseley Broadcast, provides industry-leading wireless solutions for both point-to-point and point-to-multipoint applications for the industrial (SCADA), broadcast, broadband enterprise and carrier marketplaces. Combining our product lines will enable us to offer a differentiated portfolio of products covering spectrum from 900 MHz to 38 GHz, bringing us much closer to number one position in the market with both licensed and unlicensed broadband, Wi-Fi, and WiMAX technology for an extremely broad spectrum range.

Our objective and that of our new parent company is to merge talent and technology to gain time-to-market advantage, exceed the expectations and needs of our combined customers, and grow the overall adoption of wireless networking.

In conjunction with the Moseley asset acquisition and Proxim filing, we have received a commitment for financing. The financing, combined with our cash from operations, will give us sufficient resources to pay our expenses going forward. This will permit us to continue to do business, serving our customers without interruption while we develop a plan of reorganization that will strengthen our balance sheet and create a capital structure that can be a foundation for long-term success.

We will continue to make serving your needs our top priority. We value our relationships with all our customers and we greatly appreciate your loyalty and understanding.

We will do our best to keep you informed of significant developments in Proxim’s reorganization. If you would like additional information, please call your Proxim Channel Manager.

Thank you for your continued support.

Kevin Duffy
President and CEO
Proxim Corporation
(408) 731-2614
kduffy@proxim.com

Proxim Corporation 2115 O'Nel Drive San Jose, CA 95131