Westell Technologies Announces Workforce Changes

AURORA, Ill.--(BUSINESS WIRE)--

Westell Technologies, Inc. (NASDAQ: WSTL), a leading provider of broadband products, gateways and conferencing services, today announced it was eliminating approximately 58 positions across the organization. This reduction is in addition to previously announced reductions related to the outsourcing of manufacturing.

"We believe we have made the right decisions necessary to achieve the full benefit of our outsourcing strategy and to help us achieve our corporate goals," said Thomas Mader, Westell Chief Executive Officer. "All of our staffing decisions are made after a very careful examination of our operations. We value the contributions that were made by individuals leaving the company, and wish them well in their ongoing endeavors."

The positions being eliminated cross all disciplines including engineering, marketing, operations and sales. The headcount reductions will result in an annual cost savings of approximately $6 million. The company anticipates these recent actions will result in an estimated charge of $1.4 million for severance and related costs during its fiscal fourth quarter.

About Westell

Westell Technologies, Inc., headquartered in Aurora, Illinois, is a holding company for Westell, Inc. and ConferencePlus, Inc. Westell, Inc. designs and develops broadband telecommunications access products. ConferencePlus, Inc. is a collaborative Application Service Provider that manages and hosts voice, video, IP applications and back-office services. Additional information can be obtained by visiting Westell's Web site at www.westell.com.

    "Safe Harbor" statement under the Private Securities Litigation
                           Reform Act 1995:

Certain statements contained herein that are not historical facts or that contain the words "believe", "expect", "intend", "anticipate", "estimate", "may", "will", "should", or derivatives thereof and other words of similar meanings are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, product demand and market acceptance risks, need for financing, an economic downturn in the U.S. economy and telecom market, the impact of competitive products or technologies, competitive pricing pressures, new product development, excess and obsolete inventory, commercialization and technological delays or difficulties (including delays or difficulties in developing, producing, testing and selling new products and technologies), the effect of Westell's accounting policies, the need for additional capital, the effect of economic conditions and trade, legal social and economic risks (such as import, licensing and trade restrictions) and other risks more fully described in the Company's Form 10-K for the fiscal year ended March 31, 2007 under the section Risk Factors. The Company undertakes no obligation to publicly update these forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or otherwise.

Source: Westell Technologies, Inc.

Released January 24, 2008