December 3, 2020

SIERRA

VANCOUVER, British Columbia–(BUSINESS WIRE)–Sierra Wireless (NASDAQ: SWIR) (TSX: SW) (the “Company” or “Sierra Wireless”), the leading IoT solutions provider that combines devices, network services and software to unlock value in the connected economy, today announced it has completed the previously announced sale of its Shenzhen, China-based automotive embedded module product line to Rolling Wireless (H.K.) Limited (“Rolling Wireless”) for US$165 million in cash. The sale of the automotive product line includes approximately US$19 million of cash and is subject to normal working capital adjustments.

“This divestiture of the Automotive product line enables Sierra Wireless to strengthen our focus and success in investment in our IoT Solutions that deliver high-value recurring revenue,” said Kent Thexton, President and CEO of Sierra Wireless. “Completing the transaction also gives us financial strength as we expand our position in the growing IoT solutions market as well as broaden our portfolio of new 5G modules and gateways for the Enterprise and Mobile Broadband markets.”

The automotive embedded modules were developed in China by Sierra Wireless and manufactured in China by outsourced contract manufacturers for sale to global electronics companies for integration into new vehicles assembled in China, Europe, and Mexico. Approximately 150 of the Company’s employees located in Mainland China, Europe and in the Asia Pacific region are becoming employees of Rolling Wireless upon the closing of the transaction.

The divested Automotive product line was a part of the Company’s Embedded Broadband reporting segment. Sierra Wireless has exited automotive applications but will continue to invest in high-speed cellular modules used in Enterprise and Mobile Broadband applications. These retained products include 4G LTE and LTE-Advanced cellular embedded modules that are ordered in large volumes as well as our new industry-leading 5G modules the company announced in the Fourth Quarter this year.

About Sierra Wireless

Sierra Wireless (NASDAQ: SWIR) (TSX: SW) is the leading IoT solutions provider that combines devices, network and software to unlock value in the connected economy. Companies globally are adopting IoT to improve operational efficiency, create better customer experiences, improve their business models and create new revenue streams. Whether it is a solution to help a business securely connect edge devices to the cloud, or a software/API solution to help manage processes associated with billions of connected assets, or a platform to extract real-time data to make the best business decisions, Sierra Wireless will work with you to create the right industry-specific solution for your next IoT endeavor. Sierra Wireless has more than 1,300 employees globally and operates R&D centers in North America, Europe and Asia. For more information, visit www.sierrawireless.com.

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

Cautionary Note Regarding Forward-Looking Statements

Certain statements and information in this press release constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws (“forward-looking statements”) with respect to the transaction, including statements with respect to

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