Q1 Results

MTI Wireless Edge Limited
08 May 2007


                             MTI WIRELESS EDGE LTD
                  FINANCIAL RESULTS FOR THE THREE MONTHS ENDED
                                 MARCH 31, 2007

MTI Wireless Edge Ltd., (ticker: MWE) ('MTI' or 'the Company'), a market leader 
in the manufacture of flat panel antennas for fixed wireless broadband, today 
announces its unaudited results for the three months ended 31 March 2007.

Highlights

   •Revenue increased by 39% year on year to US$4.7m (Q1 2006: US$3.4m)
   •Profit before tax up 53% year on year to US$944k (Q1 2006: US$617k)
   •Net profits improved by 47% year on year to US$855k (Q1 2006: US$583k)
   •Gross profit margin of 42%
   •Net cash at 31 March 2007 of $13.4m
   •Cash flow from operating activities of $1M

Dov Feiner, Chief Executive Officer, commented:
'The Board is pleased to deliver a seventeenth consecutive quarter of growth.
The first quarter of the year has shown continued solid trading with the Group
performing in line with management's expectations. The current military backlog
and sales have already surpassed the whole of 2006 while the overall company
order book and prospects remain fully consistent with our expectations for the
year as a whole - as a result we look forward to the rest of the year with
confidence.

'Our markets remain strong with good demand for WiMax compliant antennas as well
as growing interest for our radio frequency identification (RFID), providing the
Company with a wider product offering. Our ability to provide high specification
technology to our military customers as well as catering to the growing needs of
our other clients has enabled us to maintain our dominant position in the
wireless fixed broadband market.

Contacts:
MTI Wireless Edge                                               [phone]
Dov Feiner, CEO
Moni Borovitz, Financial Director

Blue Oar Securities Plc                                        [phone]
Luke Ahern
David Seal

Threadneedle Communications                                    [phone]
Graham Herring
Josh Royston

About MTI Wireless Edge

MTI designs and manufactures flat panel antennas, largely supplied to
international OEMs of fixed broadband wireless access systems. With over 30
years of technical 'know-how', flexible high volume manufacturing capabilities
and low failure rates, MTI's antennas now comprise approximately 25% of the
global fixed broadband wireless antenna market. In addition, the Company has
successfully developed products for new commercial applications as wireless
systems become increasingly prevalent in new markets.



                           PROFIT AND LOSS STATEMENT


                         For the three months ended                  Year ended 
                                     March 31, 2007           December 31, 2006
                                                    U.S. $ in thousands

Revenues                                      4,722                      16,463
Cost of sales                                 2,750                       9,159

Gross profit                                  1,972                       7,304
Research and development
expenses                                        332                       1,121
Selling and marketing
expenses                                        546                       1,783
General and administrative
expenses                                        275                       1,088

Operating profit                                819                       3,312
Financial expenses                               32                         102
Financial income                                157                         574

Profit before taxation                          944                       3,784
Tax on profit                                    89                         161

Net profit                                      855                       3,623

Earnings per share:
Basic                                        0.0159                      0.0736

Diluted                                      0.0156                      0.0708

Weighted average number of shares
outstanding:
Basic                                    53,779,998                  49,262,202

Diluted                                  54,735,714                  51,182,578




                                 BALANCE SHEET


                                       31.3.2007                    31.12.2006
                                                 U.S. $ in thousands
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                  2,488                         2,167
Short-term investments                    10,925                        11,133
Trade receivables                          5,100                         5,154
Other receivables                            248                           206
Inventories                                2,034                         1,724

Total current assets                      20,795                        20,384

LONG TERM PREPAID EXPENSES                    31                            32

PROPERTY AND EQUIPMENT, NET                1,563                         1,435

OTHER ASSETS, NET                            481                           475

                                          22,870                        22,326


                                            31.3.2007               31.12.2006
                                                  U.S. $ in thousands

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term loans              87                       87
Trade payables                                  3,003                    2,470
Other accounts payables                         1,112                    1,047

Total current liabilities                       4,202                    3,604

LONG-TERM LIABILITIES:
Liabilities to banks                                -                       22
Accrued severance pay                             242                      231

                                                  242                      253

SHAREHOLDERS' EQUITY
Share capital                                     115                      115
Additional paid-in capital                     16,357                   16,357
Retained earnings                               1,954                    1,997

Total shareholders' equity                     18,426                   18,469

                                               22,870                   22,326




                  STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY


For the three months ended March 31, 2007:

                            Share     Additional         Retained       Total
                          capital        paid-in         earnings
                                         capital  
                                             U.S. $ in thousands

Balance at January 1,
2007                          115          16,35            1,997      18,469

Changes during the three
months ended March 31, 
2007:
Profit for the year             -              -              855         855
Dividend distributed            -              -             (898)       (898)

Balance at March 31, 2007     115         16,357            1,954      18,426



For the year ended December 31, 2006:

                           Share    Additional     Retained earnings/     Total
                         capital       paid-in   (accumulated deficit)
                                       capital  
                                            U.S. $ in thousands


Balance at January 1,
2006                           2         7,561                    374     7,937

Changes during 2006:
Profit for the year            -             -                  3,623     3,623
Issuance of share 
capital                       *-            79                      -        79
Share capital as a 
result of split               80           (80)                     -         -
Additional capital
raised in AIM listing         33         8,797                      -     8,830

Divided distributed            -             -                 (2,000)   (2,000)

Balance at December 31,      
2006                         115        16,357                  1,997    18,469


* Less than 1 thousands dollar.



                            STATEMENTS OF CASH FLOWS

                                             For the three 
                                              months ended           Year ended 
                                            March 31, 2007    December 31, 2006
                                                     U.S. $ in thousands

Cash Flows from Operating Activities:
Net profit                                             855                3,623
Adjustments to reconcile net income to net 
cash provided by operating activities:
Depreciation and amortization                           73                  281
Gain from short-term investments                      (152)                (340)
Deferred taxes                                          (6)                 (13)
Issuance of share capital                                    -               79
Changes in operating assets and 
liabilities:

Decrease (increase) in inventories                    (310)                (716)
Decrease (increase) in trade receivables                54               (1,749)
Decrease (increase) in other accounts
receivables for short and long term                    (41)                  43
Increase (decrease) in trade payables                  477                  789
Increase (decrease) in other accounts                   
payables                                                62                  446
Severance pay, net                                      11                   57

Net cash provided by operating activities            1,023                2,500




                            STATEMENTS OF CASH FLOWS


                                             For the three 
                                              months ended           Year ended 
                                            March 31, 2007    December 31, 2006
                                                   U.S. $ in thousands

Cash Flows From Investing Activities:
Sale (purchase) of short-term investment,
net                                                    360              (10,793)
Purchase of property and equipment                    (142)                (263)

Net cash (used in) provided by investing               
activities                                             218              (11,056)

Cash Flows From Financing Activities:
Dividend distributed                                  (898)              (2,000)
Issue of ordinary shares                                 -                8,830
Repayment of long-term loans                           (22)                 (87)

Net cash (used in) provided by financing              
activities                                            (920)               6,743

INCREASE (DECREASE) IN CASH AND 
CASH EQUIVALENTS                                       321               (1,813)
CASH AND CASH EQUIVALENTS                            
AT BEGINNING OF PERIOD                               2,167                3,980

CASH AND CASH EQUIVALENTS AT END OF PERIOD           2,488                2,167




                       NOTES TO THE FINANCIAL STATEMENTS

Note 1 - General:

MTI Wireless Edge Ltd. (hereafter - the Company) is an Israeli corporation. It
was incorporated on December 30, 1998 as a wholly - owned subsidiary of M.T.I.
Computers & Software Services (1982) Ltd. (hereafter - the Parent Company) and
commenced operations on July 1, 2000 and since March 2006, the Company's shares
have been traded on the AIM Stock Exchange.

The Company is engaged in the development, design, manufacture and marketing of
antennas.

Note 2 - Significant Accounting Policies:

The significant accounting policies applied in the annual financial statements
of the Company as of December 31, 2006 are applied consistently in these interim
consolidated financial statements.

The Company prepares its financial statements in accordance with the
international reporting standards.






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