BURNABY, BC -- (MARKET WIRE) -- 10/20/2006 -- Unity Wireless Corporation (OTCBB: UTYW), an emerging developer of key network components for wireless carriers and OEM sub-components for network infrastructure manufacturers, has announced that it entered the fourth quarter in a strong starting position with purchase orders in excess of US$4 million.

"We are pleased to see current production orders at these levels so early in the quarter and still expect additional purchase orders to be received in Q4," commented Ilan Kenig, President and CEO of Unity Wireless Systems Corp.

Mr. Kenig continued, "The combined revenues of the 'NEW' Unity Wireless, including its three recently acquired subsidiaries, for the first six months of this year, was $8.8 million on a proforma basis. With the last of the three acquisitions being completed on August 14th, at mid-Q3, we anticipate that consolidating the four Unity operations into a single, streamlined corporation for the remainder of FY2006 will contribute significant visible cost savings during the second half of this year."

Final results for the third quarter will be available on or about November 14th. Production orders are generally for products that have been previously qualified by customers and are in production to meet supply chain and deployment schedules.

About Unity Wireless

Unity Wireless is a developer of key network components for wireless carriers and OEM sub-components for network infrastructure manufacturers. For more information about Unity Wireless, visit www.unitywireless.com.

Forward-Looking Statements

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "feel," "plan," "anticipate," "project," "could," "should" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation, inability to consummate the acquisitions, difficulty in integrating any of the proposed or future acquisitions, inability to raise the funds necessary for the continued operations of the Company and its acquisitions, changes in external market factors including the economy, and other risks and uncertainties indicated in the Company's most recent SEC filing on form SB-2. Actual results could differ materially from the results referred to in the forward-looking statements.