FOR IMMEDIATE RELEASE                               EXHIBIT 99.1


Investor Relations Contact:      Company Contact:
Michael Glickman                 James P. Ashman, CFO
Lippert/Heilshorn & Associates   CAI Wireless Systems, Inc.
212/838-3777                          518/462-2632


            CAI WIRELESS SYSTEMS, INC. ISSUES ADDITIONAL $2 MILLION
                          IN 13% SENIOR SECURED NOTES

     Albany, N.Y., January 29, 1998 - CAI Wireless Systems, Inc.  (OTC Symbol:
CAWS)("CAI") announced that it sold an additional $2 million of its 13% Senior
Secured Notes (the "Notes") to an existing investor that had previously
purchased $25 million of the Notes in November 1997.  The sale of the
additional Notes increases the total amount of Notes held by the investor to
$27 million.

     The Notes, which are secured by a blanket lien on all of CAI's assets, are
short-term obligations of CAI, maturing on February 20, 1998, and were sold
pursuant to the terms of the November 1997 Note Purchase Agreement which was
amended to provide for the additional $2 million Notes purchase.  Interest on
the Notes is payable at maturity.  CAI is required to pay an additional $20,000
commitment fee to the purchaser of the Notes, making the total commitment fee
for the Notes equal to $270,000, which fee is also due at maturity.

     CAI is continuing to work with its financial advisors to devise a
comprehensive plan for financing to meet the Company's on-going needs, which
plan may include a financial restructuring of its existing debt.

     CAI, based in Albany, NY, currently operates six analog-based MMDS
subscription video systems in New York City, Rochester and Albany, NY,
Philadelphia, PA, Washington, DC and Norfolk/Virginia Beach, VA, and provides
Internet access services in Rochester, New York City and Boston.  CAI also owns
a portfolio of MMDS channel rights in eight additional markets, including Long
Island, Buffalo and Syracuse, NY, Providence, RI, Hartford, CT, Boston, MA,
Baltimore, MD and Pittsburgh, PA. In addition, CAI owns approximately 50.7% of
CS Wireless Systems, Inc., an MMDS operator based in Plano, TX.


THE STATEMENTS CONTAINED IN THIS PRESS RELEASE RELATING TO CAI'S PLANS AND
OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS, INCLUDING PLANS OR OBJECTIVES
RELATING TO CAI'S PRODUCTS AND SERVICES, CONSTITUTE FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED.  ACTUAL RESULTS OF THE COMPANY MAY DIFFER MATERIALLY FROM THOSE IN THE
FORWARD-LOOKING STATEMENTS AND MAY BE AFFECTED BY A NUMBER OF FACTORS INCLUDING
THE RECEIPT OF REGULATORY APPROVALS FOR ALTERNATIVE USES OF ITS MMDS SPECTRUM,
THE AVAILABILITY OF NEW STRATEGIC PARTNERS AND THEIR WILLINGNESS TO ENTER INTO
ARRANGEMENTS WITH CAI, THE TERMS OF SUCH ARRANGEMENTS, THE SUCCESS OF CAI'S
TRIALS IN VARIOUS OF ITS MARKETS, THE COMMERCIAL VIABILITY OF ANY ALTERNATIVE
USE OF MMDS SPECTRUM, CONSUMER ACCEPTANCE OF ANY NEW PRODUCTS OFFERED OR TO BE
OFFERED BY CAI, SUBSCRIBER EQUIPMENT AVAILABILITY, TOWER SPACE AVAILABILITY,
ABSENCE OF INTERFERENCE AND THE ABILITY OF CAI TO REDEPLOY OR SELL EXCESS
EQUIPMENT, AS WELL AS OTHER FACTORS CONTAINED HEREIN AND IN CAI'S SECURITIES
FILINGS.  FURTHERMORE, THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL BE ABLE
TO SECURE FINANCING NECESSARY TO MEET ITS FUTURE CASH NEEDS ON TERMS AND
CONDITIONS SATISFACTORY TO THE COMPANY.