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The use of multiple antennas at both ends of a wireless link, popularly known as multiple-input multiple-output (MIMO) wireless, has been shown to offer significant improvements in spectral efficiency and link reliability through spatial multiplexing and space-time coding, respectively. This paper demonstrates that similar performance gains can be obtained in wireless relay and adhoc networks employing terminals with MIMO capability. In the relay case a source terminal communicates with a destination terminal assisted by multiple relay terminals. For this scenario, assuming that transmitter and receiver employ M antennas and operate in spatial multiplexing mode, we show that the network capacity scales as C= M