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Craig Wireless acknowledges receipt of arbitration notice

^{Published on 2009-07-31 15:55:40, Last Modified on 2009-07-31 15:55:48 - Market Wire}
 

 WINNIPEG, July 31 /CNW/ - Craig Wireless Systems Ltd. ("Craig Wireless" or the "Company") (TSX: CWG), announces that its Greek operating subsidiary, Craig Wireless Hellas S.A. ("CWS Hellas") is in receipt of a notice of arbitration proceedings from Lannet Communications S.A. ("Lannet") in relation to a dispute among Lannet and CWS Hellas concerning a wholesale agreement among CWS Hellas and Lannet in Greece. As previously announced by the Company on December 4, 2008, the Company intends to vigorously and expeditiously contest the assertions made by Lannet. "As announced previously, our Company has shown substantial flexibility to Lannet during their time of serious financial and operational difficulties," said Boyd Craig, Co-Executive Chairman and Co-Chief Executive Officer of the Company. "We are surprised and disappointed by the actions of Lannet in this matter. Craig Wireless believes the arbitration claim to be a baseless attempt to hold our subsidiary Craig Wireless Hellas S.A. responsible for Lannet's own operational, managerial and financial deficiencies." Throughout 2008, Lannet filed for bankruptcy protection in Greece and its shares were suspended from trading on the Athens Stock Exchange. The Company maintains that the basis for the arbitration claim is completely unfounded and without merit, and is currently seeking legal advice in connection with the appropriate response to the application for arbitration proceedings including, without limitation, its right to counterclaim against Lannet and Lannet's principals. About Craig Wireless Systems Ltd. Craig Wireless and its affiliates (collectively, the "CWS Group") offer a broad range of telecommunications services, including, broadband Internet access, television programming delivery, business connectivity solutions, hosting, security and telecommunications solutions. Through certain members of the CWS Group, Craig Wireless holds or leases licenses for spectrum in the 2.5 GHz, 2.6 GHz or 3.5 GHz bands in Manitoba, British Columbia, the Coachella Valley region, California, United States, Greece, Norway and New Zealand. Spectrum in these ranges is effective for delivery of point-to-multipoint signals, possesses robust bandwidth capability and supports emerging WiMAX-based and other fourth generation (4G) applications, including portable and mobile applications. The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. Notice on forward-looking statements This release includes forward-looking statements regarding Craig Wireless and its business. Such statements are based on management's current expectations. The forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of known and unknown risk factors and uncertainties affecting Craig Wireless and its business. No forward-looking statement can be guaranteed. Forward-looking statements speak only as of the date on which they are made and Craig Wireless does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. 

For further information: J. Drew Craig, Co-Chief Executive Officer, Craig Wireless Systems Ltd., Tel: (416) 515-2222 ext. 2, email:craiginfo@craigwireless.com