ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

Effective February 25, 2008, the Company entered into an agreement for the sale of certain assets of the Company, including power amplifier and related products, design, IP (intellectual property), PO (purchase orders) and equipment located in its Burnaby, BC location with Moventis Wireless Inc. and PTL Electronics Ltd. of British Columbia, Canada.

Under the agreement, the purchase is non-cash with Unity receiving consideration of USD$3 million which will be offset against a portion of its account payable to its contract manufacturer, PTL Electronics. In addition, Unity will be entitled to a royalty for a period of 3 years.

Closing of the above transaction is subject to receiving the approval of the transaction by certain lien holders on the company's assets as well as other conditions to be met as specified in the agreement. There is no assurance that this transaction will be completed.

A copy of the Agreement is attached as Exhibit 2.1. The foregoing description of the Agreement is qualified in its entirety by reference to the full text of the exhibits. A copy of the press release issued by Unity on March 21, 2007 is furnished herewith as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

Exhibit Description 2.1 Asset Purchase Agreement dated February 25, 2008 by and among Unity Wireless Corporation, Unity Wireless Systems Corporation, Moventis Wireless Inc. and PTL Electronics Ltd. 99.1 Press Release dated March 21, 2008 by Unity Wireless Corporation