Unity Wireless Wins 4G Development Deal from North American Fortune 500 Wireless Manufacturer

Initial Phased Development Program for WiMax Related Technology Could Exceed $1,000,000

BELLINGHAM, WA--July 5, 2007 -- Unity Wireless Corporation (OTCBB: UTYW) today announced that it has been selected by one of North America’s largest wireless manufacturers to develop a new 4G, WiMax-like (UMB – Ultra Mobile Broadband) mobile high speed data product for use in the client’s latest mobile broadband base station line, now under development. Unity received the purchase order for the first phase of this program earlier this week.

Rick Byrd, Vice President, Sales for Unity’s OEM (Original Equipment Manufacturer) group commented, "Mobile broadband, or 4G, is the next big push in the wireless industry. Unity is now involved in several of the potential protocols, including WiMax and UMB (Ultra Mobile Broadband). This latest opportunity is a scheduled development that will start with prototype phases, moving to limited production deployment and test in the Fall of 2007, with full production deliveries anticipated for early ’08."

Nissim Atias, President and COO of Unity Wireless, said, "We are very please with this win and the potential of this client’s project to position Unity as a strong player in the growing Wi-Max related technology business. The OEM projects, like this one, that we are now involved in have the potential, once the manufacturer’s base station line is successful, to migrate into significant, recurring revenue orders for this client and its licensees."

For an easy to understand overview of 4G mobile broadband titled, "Mobile Broadband Explained", please visit the "Industry Info & Links" page on Unity’s web site at http://www.unitywireless.com/ind-info.html

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.

Investor Contact:
Talal Fouani, Wall Street Financial Corp. (403) 616-8472
David Orton, VP Marketing & Investor Relations, Unity Wireless: Toll Free 1-877-988-6489