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A 2D model of an office building has been analysed at 1.0 GHz using the FDTD method. Results indicate inter-floor radio-wave propagation is supported by two distinct mechanisms: direct penetration and floor-edge diffraction. The power of the direct component decreases linearly by 10-15 dB/floor penetrated, whereas the diffracted component is significantly smaller and asymptotes toward a constant value. The presence of floor-edge diffraction is a noteworthy finding, as it provides a physical basis for previously reported, but hitherto, unexplained, results.