O2 introduces new Sierra Wireless USB Modem for wireless broadband in the United Kingdom

The Compass 885 USB Modem from Sierra Wireless now available in the UK on the O2 network

LONDON and VANCOUVER, July 3 -- O2 and Sierra Wireless (NASDAQ:SWIR) (NASDAQ:-) (NASDAQ:TSX:) (NASDAQ:SW) today announced the world's first commercial launch of the Sierra Wireless Compass(TM) 885 USB Modem on the O2 network in the UK. Designed for mobile professionals, laptop computer users and frequent travellers, the O2 Business USB modem has a smaller, more durable USB design with download speeds of up to 7.2 Mbps (megabits per second) and upload speeds of up to 2 Mbps. The O2 Business USB modem can be purchased through O2 direct, corporate and business sales channels and online at www.o2.co.uk.

The O2 Business USB modem packs user-friendly features into a small and familiar USB connection design. Designed to offer a flawless user experience, the modem includes TRU-Install(TM) automatic software installation to simplify setup, a microSD memory card slot to expand its functionality, and offers seamless high-speed wireless connectivity for both Mac and Windows notebook and desktop computers.

Enabling users to work at home, in the office or while travelling, the O2 Business USB modem features the ability to roam globally, with tri-band HSPA/UMTS support and quad-band GSM/EDGE support, ensuring compatibility with networks in many countries around the world. It also includes a connector for an external antenna, allowing users in remote areas or fringe network coverage to extend and strengthen their connection to the network.

"The Compass 885 USB modem is designed to satisfy the pace and needs of busy mobile professionals," said Jim Lahey, vice president, EMEA, for Sierra Wireless. "It offers ease of use, worldwide high-speed roaming for simple, reliable connectivity while travelling, with a small, minimalist design, and we're pleased to be able to deliver it first to O2 customers in the UK."

  About O2

  -   O2 is a leading communications company for consumers and businesses
      in the UK, with over 18.4 million mobile customers and over 130,000
      fixed broadband customers as at 31 March 2008.
  -   O2 UK IS part of Telefonica O2 Europe which owns O2 in the UK,
      Ireland, Slovakia, Germany and the Czech Republic, and has
      42.8 million customers.
  -   In 2006 Telefonica O2 Europe acquired Be, the UK fixed broadband
      provider, and in October 2007 O2 launched its broadband service using
      the Be network.
  -   Be Unlimited caused a stir in 2005 by launching the UK's fastest
      broadband, a 24Mbps ADSL2+ product.
  -   O2 UK is the naming rights partner of The O2, the world-class
      entertainment venue.
  -   O2 UK was ranked the 6th best place to work in the Best Companies to
      Work for 2008 List and has been awarded a three-star accreditation
      denoting an 'extraordinary' company.
  -   O2 UK was launched on 1 May 2002 and now has more customers than any
      other UK mobile network.
  -   O2's UK mobile network covers 99% of the UK's population. O2's 3G
      network covers 80% of the UK population and is fully HSDPA-enabled,
      providing speeds of up to 1.3 Mbps for customers with an HSDPA-
      enabled device.
  -   Telefonica O2 Europe also owns 50% of the Tesco Mobile and Tchibo
      Mobilfunk joint venture businesses in the UK and Germany.
  -   (For b-roll footage of O2, please visit www.thenewshub.co.uk)
  -   Further press information about O2 can be found at
      http://mediacentre.o2.co.uk/

  About Sierra Wireless

Sierra Wireless (NASDAQ:SWIR) (NASDAQ:-) (NASDAQ:TSX:) (NASDAQ:SW) modems and software connect people and systems to mobile broadband networks around the world. The Company offers a diverse product portfolio addressing enterprise, consumer, original equipment manufacturer, specialized vertical industry, and machine-to-machine markets, and provides professional services to customers requiring expertise in wireless design, integration, and carrier certification. For more information about Sierra Wireless, visit www.sierrawireless.com.

"Compass" is a trademark of Sierra Wireless. Other product or service names mentioned herein may be the trademarks of their respective owners.

Sierra Wireless 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.

CONTACT: Sharlene Myers, Sierra Wireless, Phone: (604) 232-1445, Email: smyers at sierrawireless.com