Carl A. Thomsen, (408) 944-1816, investor_relations@dmcwave.com


FOR IMMEDIATE RELEASE:

                          DIGITAL MICROWAVE CORPORATION
                             ANNOUNCES SALE OF STOCK

         SAN JOSE, CALIF., MARCH 10, 2000--Digital Microwave Corporation
(Nasdaq: DMIC) today announced that it has sold 1,347,368 shares of its common
stock from its shelf registration statement. The shares of its common stock were
sold in a block trade through Dain Rauscher Wessels, a division of Dain Rauscher
Incorporated. Digital Microwave Corporation received net proceeds of
approximately $44.8 million from the sale before expenses, which the Company
will use for general corporate purposes, including working capital, and may use
a portion of such net proceeds to fund potential strategic investments and
acquisitions.

         This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sales of these
securities in any jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of any such jurisdiction.

         This offering was made by means of a prospectus supplement to a
prospectus that is part of the Company's shelf registration previously filed
with the Securities and Exchange Commission. Copies of the prospectus and the
prospectus supplement can be obtained from Dain Rauscher Wessels, a division of
Dain Rauscher Incorporated at Dain Rauscher Plaza, 60 South Street, Minneapolis,
MN 55402-4422 or by calling the Company.

         Headquartered in San Jose, California, Digital Microwave Corporation
provides microwave radio solutions to connect, enable and grow communications
networks worldwide. The Company's industry-leading broadband, medium-capacity
and low-capacity radios transport data, voice, and video for public and private
networks in a wide range of global environments. Digital Microwave Corporation
brings value to a diverse range of customers through its vast array of quality
systems, services and support.




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For more information visit the Company's web site at http://www.dmcwave.com.