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The IEEE 802.11 and Bluetooth wireless networks can provide complimentary services and they are likely to be installed within the same environments. Since both networks operate in the same ISM frequency band, the networks will be impaired if the probability of packet collision between the networks is sufficiently large. In this paper, the performance of the Bluetooth medium access control (MAC) layer is quantified when the Bluetooth radio operates in close proximity to other Bluetooth piconets and IEEE 802.11 wireless local area networks (WLANs). The packet error rate and aggregated throughput are obtained.