Exhibit 99.1

Novatel Wireless Announces Second Quarter 2010 Financial Results

SAN DIEGO, CA — August 3, 2010 — Novatel Wireless, Inc. (NASDAQ: NVTL), a leading provider of wireless broadband access solutions, today reported financial results for the second quarter ended June 30, 2010.

“We continue to execute on our business strategies of launching open-software platforms with tier-one operators, migrating our next generation air interfaces with key customers across our entire product portfolio, and securing new customers for our embedded-module business,” said Peter Leparulo, chairman and CEO of Novatel Wireless. “We have new design wins across several OEM platforms, including PCs, netbooks, and various consumer products that will integrate mobility into their devices.

“We are seeing strong demand for our MiFi® product line, and have added new wireless operators and retail outlets that will add to sales in the second half. The MiFi Intelligent Mobile Hotspot is proving to be an ideal complement to mobile devices such as the iPad, laptops, tablets, MP3 players and gaming devices, allowing people to consolidate all their mobile broadband connectivity needs in one economical solution rather than having several subscriptions. We expect this momentum to continue to build as consumers recognize that the MiFi device is a superior connectivity option for new Wi-Fi enabled devices.”

Operating Results

Second quarter revenues exceeded our guidance of $70 million. As compared to the second quarter of 2009, revenue grew 34 percent to $46.4 million in core product lines, which include USB modems and PC cards. MiFi sales increased 85 percent to $25.0 million. However, embedded module sales declined by $35.4 million primarily due to the previously disclosed end of a contract to supply modules to a producer of e-reader devices.

GAAP gross margins of 18.9% and Non-GAAP gross margins of 19.2% were below our expectations due to various factors, including customer mix that reduced average selling prices, expedited freight costs as a result of component shortages, and foreign exchange impacts from Euro-based sales.

GAAP operating expenses were $21.6 million. Non-GAAP operating expenses, which exclude stock-based compensation expense and charges related to M&A activities (see below), were $18.0 million compared to $18.4 million in the second quarter of 2009.

M&A Activities

The merger and acquisition activities that impacted financial results were related to the company’s participation in an insolvency proceeding for the sale of Cinterion Wireless Modules, which has the leading market share in cellular machine-to-machine (M2M) modules. This proceeding was conducted in Germany and Novatel Wireless was notified on May 5 that it was a qualified bidder.

The insolvency administrator required that offers be supported by deposited funds or bank guaranteed funds equal to prices offered. To meet this requirement, Novatel Wireless converted cash and marketable securities, plus proceeds from a bridge financing, into Euros and transferred the funds to an escrow account upon submitting its offer.

The insolvency administrator announced the auction results at a Creditor’s Assembly meeting held on June 28. Since Novatel Wireless was not the highest bidder, the funds in escrow were returned to Novatel Wireless’ investment account and reconverted to U.S. dollars. The bridge loan was then repaid on July 1. The following table summarizes the transaction and financing charges related to this acquisition effort.

The above amounts have been excluded from non-GAAP results.

Deferred Tax Assets

During the second quarter of 2010, the company recorded a valuation allowance of $15.5 million against the book value of deferred tax assets generated prior to 2010. This resulted in a non-cash charge to earnings of $0.49 per share. This adjustment has been excluded from non-GAAP results.

Recent Business Highlights

Third Quarter 2010 Business Outlook

The following statements are forward-looking and actual results may differ materially. Please see the section titled, “Cautionary Note Regarding Forward-Looking Statements” at the end of this press release. A more detailed description of risks related to our business is included in the reports filed by the company with the Securities and Exchange Commission.

The following summarizes the company’s financial guidance for the third quarter of 2010, which is based on our current business outlook as of the date of this press release.

Conference Call Information

Novatel Wireless will host a conference call and live webcast for analysts and investors today at 5:00 p.m. ET. For parties in the United States and Canada, call 877-941-4776 to access the conference call. International parties can access the call at 480-629-9762.

Novatel Wireless will offer a live webcast of the conference call, which will also include forward-looking information. The webcast will be accessible from the “Investor Relations” section of the Company’s website at www.novatelwireless.com. The webcast will be archived for a period of 90 days. A telephonic replay of the conference call will also be available two hours after the call and will run for two days. To hear the replay, parties in the United States and Canada should call 800-406-7325 and enter pass code 4329927. International parties should call 303-590-3030 and enter pass code 4329927. In addition, Novatel Wireless’ press release will be accessible from Novatel Wireless’ website before the conference call begins.

ABOUT NOVATEL WIRELESS

Novatel Wireless, Inc. is a leader in the design and development of innovative wireless broadband access solutions based on 3G and 4G wireless technologies. Novatel Wireless’ Intelligent Mobile Hotspot products, software, USB modems and embedded modules enable high-speed wireless Internet access on leading wireless data networks. The Company delivers specialized wireless solutions to carriers, distributors, OEMs and vertical markets worldwide. Headquartered in San Diego, California, Novatel Wireless is listed on NASDAQ: NVTL. For more information please visit www.novatelwireless.com. (NVTLG)

Cautionary Note Regarding Forward-Looking Statements

Some of the information presented in this release constitutes forward-looking statements based on management’s current expectations, assumptions, estimates and projections. In this context, forward-looking statements often address expected future business and financial performance and often contain words such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will” and similar words and phrases indicating future results. The information presented in this release related to our outlook for the third quarter of 2010 and statements regarding the future performance of our products are forward-looking. Forward-looking

statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. The Company therefore cannot guarantee future results, performance or achievements. Actual results could differ materially from the Company’s expectations.

Factors that could cause actual results to differ materially from Novatel Wireless’ expectations are set forth as risk factors in the Company’s SEC reports and filings and include (1) the future demand for wireless broadband access to data, (2) the growth of wireless wide-area networking, (3) changes in commercially adopted wireless transmission standards and technologies including 3G and 4G standards, (4) continued customer and end user acceptance of the Company’s current products and market demand for the Company’s anticipated new product offerings, (5) increased competition and pricing pressure from current or new wireless market participants, (6) dependence on third party manufacturers in Asia and key component suppliers worldwide, (7) unexpected liabilities or expenses, (8) the Company’s ability to introduce new products in a timely manner, (9) litigation, regulatory and IP developments related to our products or component parts of our products, (10) the outcome of pending or future litigation, including the current class action securities litigation, (11) the continuing impact of the recent global credit crisis on the value and liquidity of the securities in our investment portfolio, (12) dependence on a small number of customers, (13) the effect of changes in accounting standards and in aspects of our critical accounting policies and (14) the Company’s plans and expectations relating to strategic relationships, international expansion, software and hardware developments, personnel matters and cost containment initiatives.

These factors, as well as other factors described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause actual results to differ materially. Novatel Wireless assumes no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future, except as otherwise required pursuant to applicable law and our on-going reporting obligations under the Securities Exchange Act of 1934, as amended.

Non-GAAP Financial Measures

Novatel Wireless has provided in this release financial information that has not been prepared in accordance with GAAP. Non-GAAP operating expenses, net income and earnings per share exclude stock-based compensation expenses and charges related to M&A activities. Non-GAAP net income and diluted earnings per share also exclude the impact of establishing a valuation allowance related to deferred tax assets and assume a tax rate which management believes reflects its long-term effective tax rate.

Non-GAAP net income, diluted earnings per share, operating expenses, and gross margin are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures are not intended to be used in isolation and, moreover, they should not be considered as a substitute for net income, diluted earnings per share, operating expenses, gross margin or any other performance measure determined in accordance with GAAP. We present non-GAAP net income, diluted earnings per share, operating expenses, and gross margin because we consider each to be an important supplemental measure of our performance.

Management uses these non-GAAP financial measures to make operational decisions, evaluate the Company’s performance, prepare forecasts and determine compensation. Further, management believes that both management and investors benefit from referring to these

non-GAAP financial measures in assessing the Company’s performance when planning, forecasting and analyzing future periods. The stock-based compensation expenses are expected to vary depending on the number of new grants issued to both current and new employees, and changes in the Company’s stock price, stock market volatility, expected option life and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP operating expenses, net income and diluted earnings per share, management excludes stock-based compensation expenses and charges related to M&A activity to facilitate-comparability of the Company’s operating performance on a period-to-period basis because such expenses are not, in management’s review, related to the Company’s ongoing operating performance. Management uses this view of its operating performance for purposes of comparison with its business plan and individual operating budgets and allocation of resources.

We further believe that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision making. We believe that the use of non-GAAP operating expenses, net income and diluted earnings per share also facilitates a comparison of Novatel Wireless’ underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

Calculating non-GAAP operating expenses, net income and diluted earnings per share have limitations as an analytical tool, and you should not consider these measures in isolation or as substitutes for GAAP operating expenses, net income and diluted earnings per share. In the future, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring. Investors and potential investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Some of the limitations in relying on non-GAAP operating expenses, net income and diluted earnings per share are:

In addition, the adjustments to our GAAP operating expenses, net income and diluted earnings per share reflect the exclusion of stock-based compensation expenses that are recurring and will be reflected in the Company’s financial results for the foreseeable future. The Company compensates for these limitations by providing specific information regarding the GAAP amount excluded from the non-GAAP financial measures. The Company further compensates for the limitations of our use of non-GAAP financial measures by presenting comparable GAAP measures more prominently. The Company evaluates the non-GAAP financial measures together with the most directly comparable GAAP financial measures.

Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures contained within this press release with our GAAP operating expenses, net income, diluted earnings per share and gross margin. For more information, see the consolidated statements of operations and the “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income” contained in this press release.

(C) 2010 Novatel Wireless. All rights reserved. MiFi is a registered trademark of Novatel Wireless, Inc. The Novatel Wireless name and logo are trademarks of Novatel Wireless, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

Investor contact:

William A. Walkowiak, CFA

Novatel Wireless

(858) 431-3711

ir@nvtl.com

Media contact:

Charlotte Rubin

Novatel Wireless

(858) 812-3431

crubin@nvtl.com

NOVATEL WIRELESS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

NOVATEL WIRELESS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

NOVATEL WIRELESS, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands)

(unaudited)

Reconciliation of GAAP Net Loss to Non-GAAP Net Loss

Three and Six Months Ended June 30, 2010

(in thousands, except per share data)

(unaudited)

The Company incurred the following fees and other income associated with the unsuccessful acquisition. There is no tax benefit associated with these fees due to uncertainty in realization of this benefit.

See “Non -GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit

Three and Six Months Ended June 30, 2010

(in thousands)

(unaudited)

See “Non -GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP Operating Costs and Expenses

Three Months Ended June 30, 2010

(in thousands)

(unaudited)

See “Non -GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

Reconciliation of GAAP Operating Costs and Expenses to Non-GAAP Operating Costs and Expenses

Six Months Ended June 30, 2010

(in thousands)

(unaudited)

See “Non -GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.

Novatel Wireless, Inc.

Reconciliation of GAAP Loss before Income Taxes to EBITDA

Three and Six Months Ended June 30, 2010

(in thousands)

(unaudited)

See “Non -GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.