Airport Extreme: Does it need to be connected to the internet to function?

I'm dealing with some wireless connectivity issues and I'll post a new thread once about that once I confirm that the issue isn't originating with my ISP. But for now I want to know:
*Should the AEBS still function to provide wireless connectivity between devices on my network if the cable-modem is unplugged?* For now when I unplug the cable modem, my wireless network disappears.
Thanks for the help!

I am having the same problem as well. It used to work as you would expect but clearly something has changed in one of the recent patches.

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