Clearwire Selects Key Infrastructure Providers; Announces Earnings and Reveals Build Out Plans for National Mobile WiMAX Network

Infrastructure Vendors for CLEAR Announced: Huawei and Ciena to help build
cost effective WiMAX network

Clearwire has signed an agreement with Chinese network equipment company Huawei
to supply Mobile WiMAX radio access network (RAN) equipment for the CLEAR
nationwide network in the U.S. Under the three-year deal, Huawei will provide
WiMAX base stations, element management system (EMS) components, and related
network hardware and software. Clearwire also named several other strategic
suppliers for its WiMAX network: Motorola and Samsung for RAN equipment; Cisco
for the core Internet Protocol (IP) Next-Generation Network infrastructure;
DragonWave for the network’s microwave backhaul transport; and Ciena for base
station switching. All of these except Ciena had been previously announced.
DragonWave was the microwave backhaul vendor for both Sprint’s Xohm network in
Baltimore as well as the old Clearwire’s planned WiMAX network. Motorola also
provides additional microwave backhaul equipment. Clearwire has said that by the
end of 2010 it wants to cover 80 markets and 120 million people for its CLEAR
network in the U.S. However, the ultimate scope and timing of Clearwire’s
network build-out will largely be driven by the Clearwire’s market- by-market
success and the availability of additional capital for network expansion.

For Huawei, the Clearwire deals marks its first top-tier player in the
U.S., where it has struggled to gain a foothold (Leap Wireless is its only other
wireless customer). A previous joint venture with 3COM did not result in any
material U.S. carrier business. "We view this as a major milestone in our
overall strategy in North America," Charlie Chen, a Huawei marketing and product
management executive, told the WSJ. "Clearwire’s vision for connecting the
Internet to people, not just places, and their dedication to building the first
nationwide WiMAX network in the United States is an exciting opportunity for
Huawei," said Wan Biao, President of Huawei Wireless Product Line. "Today’s
announcement is an important milestone and represents a significant step toward
establishing Huawei’s presence in North America and further demonstrates our
commitment to delivering high-quality products and services to our customers."

Huawei’s equipment will allow Clearwire to deploy its network at lower cost.
During a conference call for reporters, Clearwire’s CTO John Saw said improved
receiver performance means fewer cell sites, leading to cost-savings of 20 to 30
percent. Clearwire plans to deploy about 20,000 base stations at a cost of
$150,000 each. Saw stated that Huawei was selected for Clearwire’s network
because it is the first vendor to make a multicarrier, four-transport base
station that will provide extra capacity and streamlined deployment. "The cost
savings will help," he said.

Overseas, Huawei has been very successful in selling all types of networking
equipment (especially optical and wireless) by undercutting the competition.
Huawei is a private Chinese company, founded by Ren Zhengfei in 1988. As a
result, they don’t have to report financial results to the public. With access
to a huge workforce, which accepts far lower rates of pay than its Western
counterparts, Huawei initially competed on price, picking up business in
emerging markets from carriers with less money to spend. But now, the company
serves 36 of the world’s top 50 operators, along with over one billion users
worldwide. While other network equipment companies have struggled and slashed
costs in a frantic bid for survival, Ren Zhengfei has kept Huawei’s R&D budget
at a relatively high level. Ten per cent of Huawei’s annual revenue is diverted
into R&D. Huawei Senior Vice President of Marketing and Product Management
Charlie Chen said the company has more than 2,000 engineers working on WiMAX
R&D, and has already shipped more than 1 million WiMAX base stations.

In 2008, Huawei’s revenues were up 46 per cent year on year to $23.3bn (with 75
per cent of those sales coming from outside of China). It’s said that half of
the firm’s workforce are engaged in research and development. Huawei states it
is "committed to providing innovative and customized products, services and
solutions to create long-term value and growth potential for its customers." We
don’t doubt that at all. For more information on Huawei, go to: www.huawei.com.

The newswires did not pick up the importance of Ciena’s selection as a Clearwire
infrastructure vendor. The optical network transport and switching company had
not previously won any significant business from a WiMAX network operator. We
think this is an important milestone for the company. Ciena recently announced
that it was providing Carrier Ethernet based backhaul for Clearwire’s mobile
WiMAX service (CLEAR) in Las Vegas, in addition to deployments in Baltimore,
Atlanta and Portland. But no details were announced by Clearwire on what role
Ciena would play in "Base Station switching." For more information on Ciena, go
to: www.ciena.com.

In summing up the CLEAR network architecture and capabilities, CTO Saw stated,
"Our new network is specifically designed to deliver an unmatched combination of
4G speeds, capacity, and mobility to meet the growing demand for wireless
broadband services. As such, we have designed an all-IP network that is
efficient, low-cost and scalable using standards-based technology from
industry-leading providers. Our existing agreements with Motorola, Samsung,
Cisco, and DragonWave, plus today’s addition of Huawei, provide us with the
capabilities and support necessary to deliver super fast mobile Internet in more
ways for both our customers and strategic wholesalers."

In a press release and follow up conference call, Clearwire announced a second
quarter loss that was slightly less than a year ago. Clearwire had a quarterly
loss of $73.4 million, or 38 cents a share, compared with a year-earlier loss of
$74.6 million, or 38 cents a share. Revenue rose 9% to $63.6 million. Average
revenue per user edged up to $39.47, helped by increased sales of service
bundles. Churn, or customer cancellations during the quarter, rose to 2.8% from
2.6%.

While that disappointed stockholders who sold off the firm’s stock, the company
hinted that its rapidly-accelerating rollout of Mobile WiMAX service will begin
showing positive results later this year.

Clearwire has seen growth slow in recent months. The total subscriber count rose
11%, to 511,000, but net additions were down a third from a year earlier, to
12,000. The company predicted in May that net additions would shrink in the
second quarter. However, Clearwire stated that there was strong subscriber
sign-ups in Portland, OR and late in the quarter in Atlanta, GA. More
importantly, CEO Bill Morrow stated that Clearwire expected more new net
subscribers in the fourth quarter of 2009 then in all other quarters combined.

"We are already seeing average daily WiMAX subscriber uptake in July outpacing
what we achieved in June by over 75%," Morrow said in a statement. "It is
important to keep in mind that at the same time we are posting strong subscriber
adds in our three CLEAR 4G markets we are also seeing the expected customer
attrition in Clearwire’s large base of 46 U.S. pre-WiMAX markets." Morrow added
that several new market debuts for its WiMAX service in 2009 should help
Clearwire achieve the "critical mass of coverage and customers that will help
propel the company forward in the next year."

Editors Note: In addition to mobile WiMAX, Clearwire offers a "pre-WiMAX" fixed
wireless broadband service in 46 U.S. markets. As the company concentrates more
on mobile WiMAX, customer defections and subscriber growth are likely to be
adversely affected.

Clearwire’s Mobile WiMAX Deployments and Network Build Out Plans

CLEAR WiMAX service is currently offered in four U.S. cities: Baltimore,
Portland, Atlanta and Las Vegas. CEO Morrow stated, "The next wave of CLEAR
launches in 2009 is on track to extend our 4G network to over 30 million people
in more than 25 markets by the end of 2009 bringing Clearwire’s total network
coverage in both legacy and 4G markets to over 40 million people."

Morrow continued. "With the 2009 addition of new markets like Chicago,
Dallas/Ft. Worth and Philadelphia, and the migration of pre-WiMAX markets like
Seattle, Charlotte and Honolulu, CLEAR’s super fast mobile Internet service is
poised to achieve a critical mass of coverage and customers that will help
propel the company forward into next year. And as I hope you’ve read, we have
announced plans to add San Antonio and Austin, Texas, [Milledgeville], Georgia,
Raleigh and Greensborough, North Carolina, and Salem, Oregon. All of these new
markets are progressing towards a fourth quarter launch. We continue to target
true broadband mobility, covering up to 120 million people in 80 markets by the
end of 2010."

"Some of the markets slated for 2010 include New York, Boston, Washington, D.C.,
Houston, and the San Francisco Bay area, among many others."

Editors Note: Clearwire groups it’s "4G" market expansion into two categories —
conversion markets, where it operate pre-WiMAX services, and the new mobile
WiMAX (CLEAR) markets. Last week Clearwire announced that it would complete its
first 10 conversion markets on September 1, 2009. These include Boise, Idaho,
[Bellingham], Washington, and eight Texas communities. In the fourth quarter,
Clearwire plans to convert Charlotte, Seattle, Honolulu, and Maui. For more
information, please see: Clearwire to Launch CLEAR Service in 10 Markets on
September 1, 2009
http://www.wimax360.com/profiles/blogs/clearwire-to-launch-clear

Key Operating Highlights:

• Atlanta and Las Vegas Markets Launch CLEAR? Adding nearly Five Million People
  and 1,800 Square Miles to Coverage Footprint
• Nationwide Roaming in CLEAR Markets Now Available via Clear 4G+ Mobile 4G/3G
  Service
• Now Targeting Over 40 Million Total Covered POPs for 2009; CLEAR 4G Network
  Set to Increase Five-Fold in 2H 2009 Reaching Over 30 Million People Across More
  Than 25 Markets by Year End
• Clearwire’s Wholesale Systems Platform Initialized; Sprint, Comcast and Time
  Warner Cable Announce 2009 4G Plans and Comcast Begins Launching Service
  Offerings

Key Performance Highlights – Q2 2009 vs. Pro Forma Q2 2008

• Portland and Late-Quarter Launch of Atlanta Generate Strong WiMAX Subscriber
  Additions Offsetting Higher Seasonal Churn in 46 US Pre-WiMAX Markets and Drive
  12,000 Net Adds During Q2 2009
• Revenues Increase 9 Percent Driven by 11 Percent Subscriber Growth and ARPU
  Stable at $39.47
• Network Covered POPs Increase Nearly 40 Percent to 23.1 Million
• Design and Development Pipeline Includes More Than 20,000 Cell Sites to Fuel
  First U.S. 4G Network Build Plans
• Ends Second Quarter with Cash and Short Term Investments of $2.5 Billion

For more information on Clearwire’s earnings report, please see: Clearwire
Reports Second Quarter 2009 Results
http://newsroom.clearwire.com/phoenix.zhtml?c=214419&p=irol-newsArticle&ID=1319733&highlight=

The Clearwire Webcast is at:
http://phx.corporate-ir.net/phoenix.zhtml?c=198722&p=irol-EventDetails&EventId=2333436

About Clearwire:

Clearwire Communications, LLC, an operating subsidiary of Clearwire Corporation
(NASDAQ: CLWR), offers a robust suite of advanced high-speed Internet services
to consumers and businesses. As part of a multi-year network build-out plan,
Clearwire’s 4G service, called CLEAR™, will be available in major
metropolitan areas across the U.S., and bring together an unprecedented
combination of speed and mobility. Clearwire’s open all-IP network, combined
with significant spectrum holdings, provides unmatched network capacity to
deliver next generation broadband access. Strategic investors include Intel,
Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. Clearwire
currently provides 4G service, utilizing WiMAX technology, in four markets and
provides pre-WiMAX communications services in 50 markets across the U.S. and
Europe. Headquartered in Kirkland, Wash., additional information about Clearwire
is available at www.clearwire.com.

Postscript: On the heels of Clearwire’s announcements, SPRINT said it’s
expanding its Mobile WiMAX (CLEAR reseller)service to 17 new cities by the end
of the year. The new additions for 2009 include Texas, Washington, Hawaii,
Idaho, North Carolina and Oregon joining the previously announced markets of
Atlanta, Chicago, Dallas-Fort Worth, Honolulu, Las Vegas, Portland, Philadelphia
and Seattle. The Overland Park, Kan.-based company also said it plans to sell
the service in Boston, Houston, New York City, San Francisco and Washington,
D.C., next year.