July 27, 2006

PCTEL Posts $26.8 Million In Revenue; 46 Percent Increase Includes $7 Million From Patent Dispute Resolution; High Margin Software and Scanner Sales Up 45 Percent

CHICAGO, Jul 27, 2006 (BUSINESS WIRE) -- PCTEL, Inc. (NASDAQ:PCTI), a leader in wireless broadband solutions, announced results for the second quarter ended June 30, 2006. Financial highlights of the quarter were:

-- $26.8 million in revenue for the quarter, an increase of 46 percent over the same period last year. Most of the increase - $7 million - reflects the resolution of PCTEL's intellectual property dispute with Agere. Revenue from product operations was up 8 percent over the same period last year.

-- $12.8 million in revenue for the quarter from the Antenna Products Group. This is a decrease of 5 percent over the second quarter last year. Revenue for the six months ended June 30, 2006 was up 6 percent from the same period a year ago. Results were unfavorably impacted by the termination of the SDARS (satellite radio antennas for retail outlets) late last year, but favorably impacted by the acquisition of the iVET(TM) product line during the third quarter of 2005.

-- $2.7 million in revenue for the quarter from the Mobility Solutions Group. This is an increase of 104 percent over the second quarter last year. Revenue for the six months ended June 30, 2006 was up 97 percent from the same period a year ago.

-- $4.0 million in revenue for the quarter from the RF Solutions Group. This is a 21 percent increase over the second quarter of last year. Revenue for the six months ended June 30, 2006 is also up 21 percent from the same period a year ago.

-- $7.4 million in licensing revenue for the quarter, an increase of $7.1 million from the second quarter last year. Again, this sharp increase includes the aforementioned patent dispute resolution.

-- $1.3 million gain on restructuring related to the closure of the Company's Dublin Factory and the termination of the local pension plan there.

-- GAAP net income of $6.3 million for the quarter, or $0.29 per diluted share, compared to $(0.3) million net loss, or $(0.02) per share for the same period in 2005.

-- Non-GAAP net income of $8.4 million for the quarter, or $0.39 per diluted share compared to $1.5 million of net income, or $0.07 per share for the same period in 2005. The Company's reporting of non-GAAP income excludes non-cash based expenses for stock compensation and amortization of intangible assets related to the Company's acquisitions. Those expenses were $2.1 million in the second quarter 2006 compared to $1.8 million for the same period a year ago.

-- $63.8 million of cash at June 30, 2006.

"The past quarter has been one of significant accomplishment for PCTEL," said Marty Singer, PCTEL's Chairman and CEO. "During the quarter, we resolved a long-standing patent dispute, kept on schedule our transition to a contract manufacturer for the iVET(TM) product line, achieved record revenues for our Mobility Solutions Group, continued to aggressively grow our scanner business, and introduced several new WiMax antennas. We are poised for a strong second half and a stronger 2007," added Singer.

PCTEL's management team will discuss the company's results during its scheduled earnings teleconference today at 6:15 PM EDT.

CONFERENCE CALL / WEBCAST

The company will hold a conference call at 6:15 PM EDT (5:15 PM CDT) today, Thursday, July 27, 2006 with Marty Singer, Chairman and Chief Executive Officer, and John Schoen, Chief Financial Officer. PCTEL will not be responding to inquiries regarding its financial results until the conference call. The session can be accessed by calling (800) 289-0508 (U.S. / Canada) or (913) 981-5550 (international).

To listen via the Internet, please visit, www.pctel.com, or http://investor.pctel.com/eventdetail.cfm?eventid=28080

REPLAY: A replay will be available for two weeks after the call on PCTEL's web site at www.pctel.com or by calling (888) 203-1112 (U.S. / Canada) or (719) 457-0820 (international) access code: 5652483.

About PCTEL

PCTEL, Inc. (Nasdaq:PCTI), which is headquartered in Chicago, is a global leader in wireless broadband solutions. PCTEL's Antenna Products Group (http://antenna.pctel.com) designs, distributes, and supports innovative antenna solutions for public safety applications, unlicensed and licensed wireless broadband, fleet management, network timing, and other GPS applications. PCTEL's Mobility Solutions' (http://mobilitysolutions.pctel.com) software tools provide secure, access independent, remote connectivity to the Internet and VoIP capability for converged handsets. PCTEL's RF Solutions' (http://rfsolutions.pctel.com) portfolio of OEM receivers, receiver based products and interference management solutions are used to measure, monitor and optimize cellular networks.

PCTEL protects its leadership position with a portfolio of more than 130 analog and broadband communications, wireless and antenna patents, issued or pending. The company's products are sold or licensed to wireless carriers, wireless ISPs, distributors, system integrators, wireless test and measurement companies, wireless network equipment and handset manufacturers, PC card manufacturers and government agencies. For more information, please visit the company's web site at: http://www.pctel.com.

PCTEL Safe Harbor Statement

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Specifically, the statements regarding PCTEL's expectations regarding the future growth of its broadband wireless products, the discontinuance of the manufacturing operations in Dublin, Ireland, and the outsource of the manufacture of certain antenna product lines are forward looking statements within the meaning of the safe harbor. These statements are based on management's current expectations and actual results may differ materially from those projected as a result of certain risks and uncertainties, including the ability to successfully grow the wireless products business, the ability to implement new technologies and obtain protection for the related intellectual property, the ability to realize product and manufacturing efficiencies, the ability to achieve reductions in costs as a result of the discontinuance of manufacturing operations and relocation or outsourcing of certain antenna products. These and other risks and uncertainties are detailed in PCTEL's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and PCTEL disclaims any obligation to update or revise the information contained in any forward-looking statement, whether as a result of new information, future events or otherwise.

                             PCTEL, Inc.

           Consolidated Condensed Statements of Operations
       (unaudited, in thousands, except per share information)


                             Three Months Ended     Six Months Ended
                                  June 30,              June 30,
                           --------------------- ---------------------
                              2006       2005       2006       2005
                           ---------- ---------- ---------- ----------

REVENUES                   $  26,758  $  18,313  $  45,324  $  33,320
COST OF REVENUES               9,702      9,609     19,546     17,178
                           ---------- ---------- ---------- ----------
GROSS PROFIT                  17,056      8,704     25,778     16,142
                           ---------- ---------- ---------- ----------
OPERATING EXPENSES:
  Research and development     3,336      2,434      6,253      4,905
  Sales and marketing          3,196      2,934      6,738      6,048
  General and
   administrative              3,725      3,865      7,473      8,031
  Amortization of other
   intangible assets           1,056        854      2,093      1,737
  Restructuring benefit       (1,269)       (70)      (716)       (70)
  Gain on sale of assets
   and related royalties        (250)      (500)      (500)    (1,000)
                           ---------- ---------- ---------- ----------
    Total operating
     expenses                  9,794      9,517     21,341     19,651
                           ---------- ---------- ---------- ----------
INCOME (LOSS) FROM
 OPERATIONS                    7,262       (813)     4,437     (3,509)
OTHER INCOME, NET                747        431      1,368        970
                           ---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE INCOME
 TAXES                         8,009       (382)     5,805     (2,539)
PROVISION (BENEFIT) FOR
 INCOME TAXES                  1,683        (60)     1,676        101
                           ---------- ---------- ---------- ----------
NET INCOME (LOSS)          $   6,326  $    (322) $   4,129  $  (2,640)
                           ========== ========== ========== ==========

Basic income (loss) per
 share                     $    0.30  $   (0.02) $    0.20  $   (0.13)
Shares used in computing
 basic income (loss) per
 share                        20,837     20,108     20,656     20,014

Diluted income (loss) per
 share                     $    0.29  $   (0.02) $    0.19  $   (0.13)
Shares used in computing
 diluted income (loss) per
 share                        21,586     20,108     21,371     20,014



                              PCTEL Inc.

                 Consolidated Condensed Balance Sheets
                       (unaudited, in thousands)

                                              June 30,    December 31,
                                               2006          2005
                                           ------------- -------------
                  ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                $     63,611  $     58,307
  Restricted cash                                   208           208
  Accounts receivable, net                       19,367        13,725
  Inventories, net                                8,652         9,547
  Prepaid expenses and other assets               2,221         3,109
                                           ------------- -------------
    Total current assets                         94,059        84,896
PROPERTY AND EQUIPMENT, net                      11,603        11,190
GOODWILL                                         32,327        31,020
OTHER INTANGIBLE ASSETS, net                     15,009        16,457
OTHER ASSETS                                      1,807           941
                                           ------------- -------------
TOTAL ASSETS                               $    154,805  $    144,504
                                           ============= =============

   LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
  Accounts payable                                1,874         2,251
  Income taxes payable                            5,721         5,297
  Deferred revenue                                1,814         1,944
  Accrued liabilities                             6,964         5,595
  Short Term Debt                                   959             -
                                           ------------- -------------
    Total current liabilities                    17,332        15,087
Pension liabilities                                   -         3,046
LONG-TERM LIABILITIES                             2,623         2,344
                                           ------------- -------------
    Total liabilities                            19,955        20,477
                                           ------------- -------------

STOCKHOLDERS' EQUITY:
  Common stock                                       22            22
  Additional paid-in capital                    165,555       160,825
  Accumulated deficit                           (32,523)      (36,652)
  Accumulated other comprehensive income          1,796          (168)
                                           ------------- -------------
    Total stockholders' equity                  134,850       124,027
                                           ------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $    154,805  $    144,504
                                           ============= =============



                             PCTEL, Inc.

                  Revenue & Gross Profit by Segment
                      (unaudited, in thousands)

                            Three Months Ended      Six Months Ended
                                 June 30,              June 30,
                           --------------------- ---------------------
                              2006       2005       2006       2005
                           ---------- ---------- ---------- ----------
REVENUES:
---------
APG                        $  12,753  $  13,385  $  25,141  $  23,705
RFS                            3,990      3,299      7,697      6,382
MSG                            2,668      1,311      4,784      2,433
LICENSING                      7,382        331      7,772        823
Eliminations                     (35)       (13)       (70)       (23)
                           ---------- ---------- ---------- ----------
TOTAL REVENUES                26,758     18,313     45,324     33,320

GROSS PROFIT:
-------------
APG                        $   4,189  $   4,840  $   7,859  $   8,386
RFS                            2,834      2,262      5,403      4,590
MSG                            2,653      1,273      4,755      2,354
LICENSING                      7,379        329      7,764        816
Eliminations                       1         --         (3)        (4)
                           ---------- ---------- ---------- ----------
TOTAL GROSS PROFIT            17,056      8,704     25,778     16,142



                             PCTEL, Inc.

 Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
 --------------------------------------------------------------------
                      (unaudited, in thousands)


                                 Three Months Ended June 30, 2006
                           -------------------------------------------
                                As        Non-GAAP            Non
                             Reported    Adjustments  (a)     GAAP
                           ------------ ------------ ---- ------------
REVENUES:
---------
APG                             12,753                         12,753
RFS                              3,990                          3,990
MSG                              2,668                          2,668
LICENSING                        7,382                          7,382
Eliminations                       (35)                           (35)
                           ------------ ------------      ------------
TOTAL REVENUES                  26,758                         26,758
                           ------------ ------------      ------------

GROSS PROFIT:
-------------
APG                              4,189          (48)  (b)       4,237
RFS                              2,834          (38)  (b)       2,872
MSG                              2,653                          2,653
LICENSING                        7,379                          7,379
Eliminations                         1                              1
                           ------------ ------------      ------------
TOTAL GROSS PROFIT              17,056          (86)           17,142
                           ------------ ------------      ------------


                                 Three Months Ended June 30, 2005
                           -------------------------------------------
                                As        Non-GAAP            Non
                             Reported    Adjustments  (a)     GAAP
                           ------------ ----------------- ------------
REVENUES:
---------
APG                             13,385                         13,385
RFS                              3,299                          3,299
MSG                              1,311                          1,311
LICENSING                          331                            331
Eliminations                       (13)                           (13)
                           ------------ -------------     ------------
TOTAL REVENUES                  18,313                         18,313
                           ------------ -------------     ------------

GROSS PROFIT:
-------------
APG                              4,840            (4) (b)       4,844
RFS                              2,262            (2) (b)       2,264
MSG                              1,273                          1,273
LICENSING                          329                            329
Eliminations                        --                              -
                           ------------ -------------     ------------
TOTAL GROSS PROFIT               8,704            (6)           8,710
                           ------------ -------------     ------------


(a) These adjustments reconcile the Company's GAAP gross profit to its
    non-GAAP gross profit. The Company believes that presentation of
    results excluding non-cash share-based compensation provides
    meaningful supplemental information to both management and
    investors that is indicative of the Company's core operating
    results and facilitates comparison of gross profit across
    reporting periods. The Company uses these non-GAAP measures when
    evaluating its financial results as well as for internal planning
    and forecasting purposes. These non-GAAP measures should not be
    viewed as a substitute for the Company's GAAP results.

(b) This adjustment reflects the non cash stock based compensation
    expense for restricted stock grants and stock bonuses awarded to
    the Company's employees. The adjustment for the three months ended
    June 30, 2006 also includes non cash stock based compensation
    expense for stock options in accordance with SFAS No. 123R.



                             PCTEL, Inc.

 Reconciliation of Non-GAAP to GAAP Revenue & Gross Profit by Segment
 --------------------------------------------------------------------
                      (unaudited, in thousands)


                                 Six Months Ended June 30, 2006
                           -------------------------------------------
                                As        Non-GAAP            Non
                             Reported    Adjustments  (a)     GAAP
                           ------------ ------------- --- ------------
REVENUES:
---------
APG                             25,141                         25,141
RFS                              7,697                          7,697
MSG                              4,784                          4,784
LICENSING                        7,772                          7,772
Eliminations                       (70)                           (70)
                           ------------ -------------     ------------
TOTAL REVENUES                  45,324                         45,324
                           ------------ -------------     ------------

GROSS PROFIT:
-------------
APG                              7,859           (92) (b)       7,951
RFS                              5,403           (71) (b)       5,474
MSG                              4,755                          4,755
LICENSING                        7,764                          7,764
Eliminations                        (3)                            (3)
                           ------------ -------------     ------------
TOTAL GROSS PROFIT              25,778          (163)          25,941
                           ------------ -------------     ------------


                                 Six Months Ended June 30, 2005
                           -------------------------------------------
                                As        Non-GAAP            Non
                             Reported    Adjustments  (a)     GAAP
                           ------------ ------------  --- ------------
REVENUES:
---------
APG                             23,705                         23,705
RFS                              6,382                          6,382
MSG                              2,433                          2,433
LICENSING                          823                            823
Eliminations                       (23)                           (23)
                           ------------ ------------      ------------
TOTAL REVENUES                  33,320                         33,320
                           ------------ ------------      ------------

GROSS PROFIT:
-------------
APG                              8,386           (5)  (b)       8,391
RFS                              4,590           (2)  (b)       4,592
MSG                              2,354                          2,354
LICENSING                          816                            816
Eliminations                        (4)                            (4)
                           ------------ ------------      ------------
TOTAL GROSS PROFIT              16,142           (7)           16,149
                           ------------ ------------      ------------


(a) These adjustments reconcile the Company's GAAP gross profit to its
    non-GAAP gross profit. The Company believes that presentation of
    results excluding non-cash share-based compensation provides
    meaningful supplemental information to both management and
    investors that is indicative of the Company's core operating
    results and facilitates comparison of gross profit across
    reporting periods. The Company uses these non-GAAP measures when
    evaluating its financial results as well as for internal planning
    and forecasting purposes. These non-GAAP measures should not be
    viewed as a substitute for the Company's GAAP results.

(b) This adjustment reflects the non cash stock based compensation
    expense for restricted stock grants and stock bonuses awarded to
    the Company's employees. The adjustment for the six months ended
    June 30, 2006 also includes non cash stock based compensation
    expense for stock options in accordance with SFAS No. 123R.



                             PCTEL, Inc.

     Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
     ------------------------------------------------------------
                      (unaudited, in thousands)


                                 Three Months Ended June 30, 2006
                             -----------------------------------------
                                  As        Non-GAAP          Non
                               Reported    Adjustments (a)    GAAP
                             ------------ ------------    ------------
REVENUES                         $26,758                      $26,758
COST OF REVENUES                   9,702          (86) (b)      9,616
                             ------------ ------------    ------------
GROSS PROFIT                      17,056           86          17,142
OPERATING EXPENSES:
  Research and development         3,336         (161) (b)      3,175
  Sales and marketing              3,196         (215) (b)      2,981
  General and administrative       3,725         (603) (b)      3,122
  Amortization of other
   intangible assets               1,056       (1,056)              -
  Restructuring benefit           (1,269)                      (1,269)
  Gain on sale of assets and
   related royalties                (250)                        (250)
                             ------------ ------------    ------------
    Total operating expenses       9,794       (2,035)          7,759
                             ------------ ------------    ------------
INCOME (LOSS) FROM OPERATIONS      7,262        2,121           9,383
OTHER INCOME, NET                    747                          747
                             ------------ ------------    ------------
INCOME (LOSS) BEFORE INCOME
 TAXES                             8,009        2,121          10,130
PROVISION (BENEFIT) FOR
 INCOME TAXES                      1,683                        1,683
                             ------------ ------------    ------------
NET INCOME (LOSS)                 $6,326       $2,121          $8,447
                             ------------ ------------    ------------

Earnings (loss) per share
  Basic                            $0.30                        $0.41
  Diluted                          $0.29                        $0.39
Shares used in computing
 EPS (in thousands)
  Basic                           20,837                       20,837
  Diluted                         21,586                       21,586



                                 Three Months Ended June 30, 2005
                             -----------------------------------------
                                  As        Non-GAAP          Non
                               Reported    Adjustments (a)    GAAP
                             ------------ ------------    ------------
REVENUES                         $18,313                      $18,313
COST OF REVENUES                   9,609           (6)          9,603
                             ------------ ------------    ------------
GROSS PROFIT                       8,704            6           8,710
OPERATING EXPENSES:
  Research and development         2,434          (70) (b)      2,364
  Sales and marketing              2,934         (183) (b)      2,751
  General and administrative       3,865         (663) (b)      3,202
  Amortization of other
   intangible assets                 854         (854)              -
  Restructuring benefit              (70)                         (70)
  Gain on sale of assets and
   related royalties                (500)                        (500)
                             ------------ ------------    ------------
    Total operating expenses       9,517       (1,770)          7,747
                             ------------ ------------    ------------
INCOME (LOSS) FROM OPERATIONS       (813)       1,776             963
OTHER INCOME, NET                    431                          431
                             ------------ ------------    ------------
INCOME (LOSS) BEFORE INCOME
 TAXES                              (382)       1,776           1,394
PROVISION (BENEFIT) FOR
 INCOME TAXES                        (60)                         (60)
                             ------------ ------------    ------------
NET INCOME (LOSS)                  $(322)      $1,776          $1,454
                             ------------ ------------    ------------

Earnings (loss) per share
  Basic                           $(0.02)                       $0.07
  Diluted                         $(0.02)                       $0.07
Shares used in computing
 EPS (in thousands)
  Basic                           20,108                       20,108
  Diluted                         20,108                       20,200


(a) These adjustments reconcile the Company's GAAP results of
    operations to its non-GAAP results of operations. The Company
    believes that presentation of results excluding items such as non-
    cash share-based compensation and amortization of intangible
    assets provides meaningful supplemental information to both
    management and investors that is indicative of the Company's core
    operating results and facilitates comparison of operating results
    across reporting periods. The Company uses these non-GAAP measures
    when evaluating its financial results as well as for internal
    planning and forecasting purposes. These non-GAAP measures should
    not be viewed as a substitute for the Company's GAAP results.

(b) This adjustment reflects the non cash stock based compensation
    expense for restricted stock grants and stock bonuses awarded to
    the Company's employees. The adjustment for the three months ended
    June 30, 2006 also includes non cash stock based compensation
    expense for stock options in accordance with SFAS No. 123R.



                             PCTEL, Inc.

     Reconciliation Of Non GAAP To GAAP Results Of Operations (a)
     ------------------------------------------------------------
                      (unaudited, in thousands)

                                  Six Months Ended June 30, 2006
                             -----------------------------------------
                                  As        Non-GAAP          Non
                               Reported    Adjustments (a)    GAAP
                             ------------ ------------    ------------
REVENUES                         $45,324                      $45,324
COST OF REVENUES                  19,546         (163) (b)     19,383
                             ------------ ------------    ------------
GROSS PROFIT                      25,778          163          25,941
OPERATING EXPENSES:
  Research and development         6,253         (306) (b)      5,947
  Sales and marketing              6,738         (439) (b)      6,299
  General and administrative       7,473       (1,307) (b)      6,166
  Amortization of other
   intangible assets               2,093       (2,093)             --
  Restructuring benefit             (716)                        (716)
  Gain on sale of assets and
   related royalties                (500)                        (500)
                             ------------ ------------    ------------
    Total operating expenses      21,341       (4,145)         17,196
                             ------------ ------------    ------------
INCOME (LOSS) FROM OPERATIONS      4,437        4,308           8,745
OTHER INCOME, NET                  1,368                        1,368
                             ------------ ------------    ------------
INCOME (LOSS) BEFORE INCOME
 TAXES                             5,805        4,308          10,113
PROVISION FOR INCOME TAXES         1,676                        1,676
                             ------------ ------------    ------------
NET INCOME (LOSS)                 $4,129       $4,308          $8,437
                             ------------ ------------    ------------

Earnings (loss) per share
  Basic                            $0.20                        $0.41
  Diluted                          $0.19                        $0.39
Shares used in computing EPS
 (in thousands)
  Basic                           20,656                       20,656
  Diluted                         21,371                       21,371


                                  Six Months Ended June 30, 2005
                             -----------------------------------------
                                  As        Non-GAAP          Non
                               Reported    Adjustments (a)    GAAP
                             ------------ ------------    ------------
REVENUES                         $33,320                      $33,320
COST OF REVENUES                  17,178           (7)         17,171
                             ------------ ------------    ------------
GROSS PROFIT                      16,142            7          16,149
OPERATING EXPENSES:
  Research and development         4,905         (120) (b)      4,785
  Sales and marketing              6,048         (315) (b)      5,733
  General and administrative       8,031       (1,140) (b)      6,891
  Amortization of other
   intangible assets               1,737       (1,737)             --
  Restructuring benefit              (70)                         (70)
  Gain on sale of assets and
   related royalties              (1,000)                      (1,000)
                             ------------ ------------    ------------
    Total operating expenses      19,651       (3,312)         16,339
                             ------------ ------------    ------------
INCOME (LOSS) FROM OPERATIONS     (3,509)       3,319            (190)
OTHER INCOME, NET                    970                          970
                             ------------ ------------    ------------
INCOME (LOSS) BEFORE INCOME
 TAXES                            (2,539)       3,319             780
PROVISION FOR INCOME TAXES           101                          101
                             ------------ ------------    ------------
NET INCOME (LOSS)                $(2,640)      $3,319            $679
                             ------------ ------------    ------------

Earnings (loss) per share
  Basic                           $(0.13)                       $0.03
  Diluted                         $(0.13)                       $0.03
Shares used in computing EPS
 (in thousands)
  Basic                           20,014                       20,014
  Diluted                         20,014                       20,357

(a) These adjustments reconcile the Company's GAAP results of
    operations to its non-GAAP results of operations. The Company
    believes that presentation of results excluding items such as non-
    cash share-based compensation and amortization of intangible
    assets provides meaningful supplemental information to both
    management and investors that is indicative of the Company's core
    operating results and facilitates comparison of operating results
    across reporting periods. The Company uses these non-GAAP measures
    when evaluating its financial results as well as for internal
    planning and forecasting purposes. These non-GAAP measures should
    not be viewed as a substitute for the Company's GAAP results.

(b) This adjustment reflects the non cash stock based compensation
    expense for restricted stock grants and stock bonuses awarded to
    the Company's employees. The adjustment for the six months ended
    June 30, 2006 also includes non cash stock based compensation
    expense for stock options in accordance with SFAS No. 123R.


SOURCE: PCTEL, Inc.

PCTEL, Inc.                        
John Schoen, 773-243-3000   
or
Jack Seller (Public Relations), 773-243-3016  
jack.seller@pctel.com

Copyright Business Wire 2006

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