Announces FiOS Gateway Win and Manufacturing Outsourcing Plans

AURORA, IL, MAY 21, 2007 - -Westell Technologies, Inc. (NASDAQ: WSTL), a leading provider of broadband access solutions and conferencing services, today announced the results for its fourth quarter and fiscal year 2007, ending March 31, 2007.

Total revenues for the March 2007 quarter decreased 18% to $59.7 million from $73.1 million in the March quarter of 2006. Breaking down revenues by product line for the March 2007 quarter compared to the March 2006 quarter showed Customer Networking Equipment (CNE) revenue decreased 35% to $32.1 million from $49.1 million, due to weaker demand for DSL devices and declining selling prices; Conferencing Services revenue increased 16% to $13.4 million from $11.5 million due to increased minutes in audio, web and video conferencing; Network Service Access (NSA) equipment revenue increased 14% to $14.2 million from $12.4 million, primarily due to the January 2007 acquisition of Noran Tel, Inc.

Total revenues for fiscal year 2007 decreased 8% to $260.1 million from $283.2 million for fiscal 2006. Customer Networking Equipment revenue decreased 21% to $153.8 million from $194.8 million in fiscal 2006. Conferencing Service revenue increased 8% to $48.5 million from $45.1 million in the prior year. Revenue from the Network Services Access business increased 33% to $57.7 million from $43.3 million in fiscal 2006.

Westell reported net income for the fourth quarter of $0.6 million, or $0.01 per diluted share, which includes an income tax expense of $0.7 million. Net income for fiscal 2007 was $8.7 million, or $0.12 per diluted share, including an income tax expense of $5.9 million. During the fourth quarter of last year, the Company recorded net income of $2.5 million, or $0.04 per diluted share including a tax expense of $3.2 million. For fiscal 2006, net income was $12.8 million or $0.18 per diluted share that included a tax expense of $10.1 million.

FiOS Gateway Win

“Since joining Westell, we have made progress in focusing the company on future market opportunities, and on gaining market share in emerging technologies”, said Thomas E. Mader, Westell’s President and CEO. “Westell was recently selected to provide FiOS MDU (Multiple Dwelling Unit) VDSL gateway product to Verizon. While we cannot discuss any specific details at this time, this win represents an important step in growing our CNE revenues, and in entering the rapidly growing FiOS marketplace”, Mader added.

Manufacturing Outsourcing

Westell also announced its intent to move the manufacturing of CNE and NSA products from Aurora, Illinois to offshore suppliers. This decision represents a new operating strategy, adopted by the Company’s Board of Directors, to better align Westell with the requirements of the marketplace. The aim of this new operating strategy is to reduce product costs, while maintaining Westell’s reputation for quality products and services. Westell will continue to be housed in the current Aurora facility. Alternative uses for the factory portion of the building made idle by this decision are being explored. Fiscal 2008 expenses associated with the implementation of the outsourcing decision are expected to be approximately $6.0 million after tax, or $0.08 per diluted share. In Fiscal 2009 the product cost savings are expected to exceed the Fiscal 2008 one-time costs associated with the outsource plan. The transition will affect approximately 300 Aurora employees.

Outlook

“We believe we have significant opportunities this year and next in Video/IPTV,
wireline/wireless convergence (FMC/IMS), and with our multi-functional broadband appliances”, Mader said. “We expect initial revenue in Fiscal 2008 from our TriLink, UltraLine and Westell MediaStation products, with more significant revenue to follow in Fiscal 2009,” Mader added.

Westell provided guidance for the first fiscal quarter ending June 30, 2007. The Companyexpects revenue to be in a range of $58 to $60 million. Westell expects EPS to be a loss in a range of $0.03 to $0.04 per diluted share, including after tax one-time costs associated with the outsource plan of approximately $1.0 million after.

Conference Call Information

Conference Plus, Inc. (ConferencePlus), a Westell subsidiary, will manage Westell’s fourth quarter Fiscal 2007 earnings conference call on Monday, May 21, at 4:00 PM ET using its new EventManager™ Service.

Participants can register for the Westell conference by going to the URL:

http://www.conferenceplus.com/westell

With EventManager, participants can quickly register online in advance of the conference through a customizable web page that can be used to gather multiple pieces of information from each participant, as specified by the event arranger. After registering, participants receive dial-in numbers, a passcode, and a personal identification number (PIN) that is used to uniquely identify their presence and automatically join them into the audio conference. A URL is also provided to join the web presentation portion of the conference. If a participant experiences any technical difficulties after joining the conference on May 21, simply press *0 for support.

If you do not wish to register, you can participate only in the audio portion of the call on May 21 by dialing ConferencePlus at 1-877-875-0056 no later than 3:45 PM, Eastern Time and using confirmation number 17848615. International participants may dial 1-847-585-4340.

The Company’s earnings press release and any related earnings information to be discussed on the earnings conference will be posted on the Investor Relations section of the Company’s website at http://www.westell.com An archive of the entire conference will be available on Westell’s website or via Digital Audio Replay one hour following the conclusion of the conference. The audio-only portion of the conference can be accessed by dialing 1-888-843-8996 or 1-630-652-3044 and entering 8554435#.


About Westell

Westell Technologies, Inc., headquartered in Aurora, Illinois, is a holding company for Westell, Inc. and ConferencePlus, Inc. Westell, Inc. manufactures 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.

About ConferencePlus

ConferencePlus, a Westell Technologies, Inc. (NASDAQ: WSTL - News) subsidiary, is a leading global provider of audio, web, video and IP conferencing services. ConferencePlus is dedicated to providing high quality, innovative conferencing solutions to its domestic and international clients and telecommunications resellers. ConferencePlus is recognized for outstanding customer service and support to help clients meet their business objectives. The company is headquartered in Schaumburg, Illinois with an international headquarters in Dublin, Ireland. Additional information can be obtained by visiting the ConferencePlus web site at http://www.conferenceplus.com

“Safe Harbor” statement under the Private Securities Litigation Reform Act 1995:
Certain statements contained herein including, without limitation, statements containing the words "believe," “on track, “ "anticipate," “focus,” “should,” “committed” "expect," "estimate", "await," "continue," "intend," “may,” “will,” “should,” and similar expressions are forward looking statements that involve risks and uncertainties. These risks include, but are not limited to, product demand and market acceptance risks, need for financing, the economic downturn in the U.S. economy and telecom market, the impact of competitive products or technologies, competitive pricing pressures, product development, excess and obsolete inventory due to new product development, 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 Westell’s Annual Report on Form 10-K for the fiscal year ended March 31, 2007 under the section “Risk Factors”. Westell undertakes no obligation to release publicly the result of any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Financial Tables to Follow:

                      Westell Technologies, Inc.
                        Financial Results
                       (Dollars in thousands)

                                         March 31, 	    March 31,
                                           2007             2006
                                      ---------------  ---------------
Cash and Short term Investments               72,167           42,215
Receivables                                   25,986           30,121
Inventory                                     18,604           23,918
Total current assets                         124,585          107,401
Goodwill and intangibles                      20,383           18,479
Total assets                                 207,350          191,813
Total current liabilities                     36,154           30,859
Total liabilities and minority
 interest                                     40,012           34,536
Shareholders' Equity                         167,339          157,276

Days Sales Outstanding                            39               37

                      Westell Technologies, Inc.
                          Financial Results
         (Dollars in thousands except per share amounts)
   
              Three Months ended March 31, Twelve Months ended March 31,
                                      %                           %
                  2007      2006   Change    2007     2006     Change
                --------- -------- ------  -------- --------   ------

Revenues
    NSA          $14,187  $12,422     14%  $57,702  $43,319       33%
    CNE           32,111   49,100    -35%  153,844  194,782      -21%
    Services      13,355   11,543     16%   48,544   45,070        8%

                --------- --------         -------- --------
Total revenues    59,653   73,065    -18%  260,090  283,171       -8%
                --------- --------         -------- --------

Gross profit
    Equipment     12,850   15,837           61,816   63,306
    Services       6,764    5,945           24,108   22,493

                --------- --------         -------- --------
  Total gross
   profit         19,614   21,782    -10%   85,924   85,799        0%
                --------- --------         -------- --------

Gross margin
    Equipment       27.8%    25.7%            29.2%    26.6%
    Services        50.6%    51.5%            49.7%    49.9%

                --------- --------         -------- --------
  Total gross
   margin           32.9%    29.8%            33.0%    30.3%
                --------- --------         -------- --------

Operating expenses
    Sales &
     marketing     7,151    6,513     10%   29,786   24,852       20%
      Expense to
       revenue      12.0%     8.9%            11.5%     8.8%

    General &
     adminis-
     trative       4,972    4,199     18%   18,064   16,543        9%

     Expense to
       revenue       8.3%     5.7%             6.9%     5.8%

    Research
     & develop-
     ment          6,188    5,414     14%    24,387   20,274       20%
      Expense to
       revenue      10.4%     7.4%             9.4%     7.2%
   
    Restructuring    343      ---               343      443
     Expense to   
       revenue       0.6%     0.0%             0.1%     0.2%

    Intangibles
     amortization    453      414             1,698    1,386
      Expense to
       revenue       0.8%     0.6%             0.7%     0.5%

                --------- --------         -------- --------
    Total operating
     expenses     19,107   16,540     16%    74,278   63,498       17%
                --------- --------         -------- --------
      Expense to
       revenue      32.0%    22.6%            28.6%    22.4%

Operating income     507    5,242    -90%    11,646   22,301      -48%

Other income         872      575             3,183      974
Interest expense      (4)      (1)   300%       (7)     (12)      -42%

                --------- --------         -------- --------
Income before
 minority interest
 and taxes         1,375    5,816    -76%    14,822   23,263      -36%
                --------- --------         -------- --------

Income taxes         718    3,202             5,892   10,112

Minority
 interest             85      104               236      304

Net income        $  572   $2,510           $ 8,694  $12,847
                ========= ========         ========  =======
Income per
 common share:
      Basic         0.01     0.04              0.12     0.18
               --------- ---------         --------  -------
 Diluted            0.01	  0.04   	 0.12     0.18
               --------- ---------         --------  -------

Average number
 of common shares
 outstanding:
      Basic       71,010   70,307            70,588   69,938
      Diluted     71,569   71,712            71,237   71,622
 

Contact:

     Westell Technologies, Inc.
     Senior Vice President and CFO:
     Nicholas C. Hindman, Sr. 
     630.375.4136
     nhind@westell.com
     or
     Trade/Business Press:
     Ken Trantowski
     KGT Communications Group
     630.469.8765
     kennethg_trantowski@msn.com