<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-06-04</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000826326</issuerCik>
        <issuerName>ARC WIRELESS SOLUTIONS INC</issuerName>
        <issuerTradingSymbol>ARCS.OB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001188446</rptOwnerCik>
            <rptOwnerName>BALABAN SIGMUND A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>10 GRECIAN ST</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>PARSIPPANY</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07054</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-06-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1785</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>.14</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1438247</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Options: Right to Buy</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.13</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2002-07-05</value>
            </exerciseDate>
            <expirationDate>
                <value>2004-07-05</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>125000</value>
                    <footnoteId id="F2"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>125000</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>Options: Right to Buy</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>.16</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2004-02-26</value>
            </exerciseDate>
            <expirationDate>
                <value>2006-02-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>125000</value>
                    <footnoteId id="F3"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>125000</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Acquired pursuant to the Issuer's 1997 Stock Option And Compensation Plan in lieu of Mr. Balaban's outside Director's Meeting
Fee of $250 for the meeting of the Board Of Directors held on June 4, 2004. The amount of shares was determined according
to the closing price of the Common Stock on the meeting date.</footnote>
        <footnote id="F2">In accordance with the 1997 Stock Option and Compensation Plan and the Issuer's policies concerning option grants to outside
Directors on July 5, 2002, Mr. Balaban received a grant of options to purchase 125,000 shares with a two year term, 25,000
of which become exercisable for each meeting of the Board of Directors attended by Mr. Balaban as an outside director.</footnote>
        <footnote id="F3">In accordance with the 1997 Stock Option and Compensation Plan and the Issuer's policies concerning option grants to outside
Directors on February 26, 2004, Mr. Balaban received a grant of options to purchase 125,000 shares with a two year term,
25,000
of which become exercisable for each meeting of the Board of Directors attended by Mr. Balaban as an outside director.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Richard L. Anderson, As Attorney in Fact</signatureName>
        <signatureDate>2004-06-07</signatureDate>
    </ownerSignature>
</ownershipDocument>

