SR Telecom & Co.
TSX : SRX

SR Telecom & Co.

November 19, 2007 10:40 ET

SR Telecom Files for Creditor Protection Under CCAA

- Operations to continue as usual during CCAA process - Actively pursuing sale of the Company - Eliminates some 35 positions

MONTREAL, QUEBEC--(Marketwire - Nov. 19, 2007) - SR Telecom Inc. (TSX:SRX), a leading vendor of broadband wireless access solutions through its WiMAX Forum-certified symmetryMX product line, today announced that it has filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA), with the Quebec Superior Court.

On November 8, the Company announced that, further to the strategic review initiated on May 10, 2007, its Board of Directors had evaluated the Company's strategic options and concluded that it is in the Company's best interests to actively pursue the sale of the Company and/or its assets. The Company believes that CCAA protection will enable SR Telecom to better position itself for an acquisition.

"Despite the CCAA filing, we remain focused on the design, delivery and deployment of our WiMAX solutions and are fully committed to ensuring the satisfaction of our customers around the world," said Serge Fortin, President and CEO of SR Telecom. "Today's filing provides a framework in which to optimize and leverage our Company's assets for all its stakeholders."

In conjunction with the CCAA filing, the Company announced that some 35 positions will be eliminated at its Montreal location and its other offices around the world. "We have taken the CCAA route to ensure the future of SR Telecom; the unfortunate side effect is that we must reduce our workforce," said Fortin. "We are maintaining appropriate staff levels to continue the development of our WiMAX solutions and sustain a strong level of customer support. This unfortunate, yet necessary, step will decrease our expenditures during the CCAA period and will reduce our operating cost base in order to facilitate an acquisition."

SR Telecom believes that filing for protection is a preventive measure. Protection under CCAA will provide SR Telecom with the ability to operate without interruption and continue to serve its customers around the world. Management believes that the sale and restructuring process will likely be completed during the first quarter of 2008.

About SR Telecom

SR Telecom (TSX: SRX) is a recognized global leader in delivering innovative broadband wireless access (BWA) solutions that enable service providers to efficiently deploy quality voice, Internet and next-generation services in urban, suburban and remote areas. A technological pioneer with more than 25 years of experience in wireless networking, SR Telecom is the only BWA vendor with extensive real-world expertise in deploying the advanced features of the WiMAX standard. It actively promotes standards-based BWA networking through its role as a principal member of the WiMAX Forum.

With its primary offices in Montreal and Mexico City, SR Telecom is an agile, customer-focused organization with a proven track record. SR Telecom's products are currently deployed in more than 110 countries worldwide. For more information, visit www.srtelecom.com.

FORWARD-LOOKING STATEMENTS

Certain information in this news release, in various filings with Canadian and US regulators, in reports to shareholders and in other communications, is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among others, information with respect to the Company's objectives and the strategies to achieve those objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of November 19, 2007.

The results or events predicted in such forward-looking information may differ materially from actual results or events. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

In making the forward-looking information contained in this news release, the Company does not assume any significant acquisitions, dispositions or one-time items. It does assume, however, the renewal of certain customer contracts. The Company has also assumed a certain progression, which may not be realized. Additionally, the Company made a number of assumptions about the market, operations, finances and transactions. Certain factors that could cause results or events to differ materially from our current expectations include, among others, our ability to implement our strategies and plans, the intensity of competitive activity and the ability to deliver our products on time while significantly reducing costs, the proper execution of our contract manufacturing arrangements, timely development of our WiMAX product offerings, the attainment of cost reduction targets, a sustained demand for symmetryone in 2007, the impact of competition on pricing and market share, and the ability to fund the required investment in working capital to sustain revenue growth.

It has also assumed that the material factors referred to in the previous paragraph will not result in such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

For a more complete discussion of the assumptions and risks underlying our forward-looking statements, please refer to the section entitled Assumptions, risks and uncertainties in the Company's management's discussion and analysis for the year ended December 31, 2006 as updated by the Company's Management's discussion and analysis for subsequent interim periods and the section entitled Risk factors in the Company's annual report on Form 20-F for the year ended December 31, 2006, which can be found under the Company's name at www.sedar.com, at www.sec.gov and on the Company's website at www.srtelecom.com.

The forward-looking information contained in this news release represents expectations of SR Telecom as of November 19, 2007 and, accordingly, is subject to change. However, SR Telecom expressly disclaims any intention or obligation to revise any forward-looking information, whether as a result of new information, events or otherwise, except as required by applicable law.

SR TELECOM, symmetry, symmetryONE and symmetryMX are trademarks of SR Telecom Inc. All rights reserved 2007. All other trademarks are property of their owners.

Contact Information

  • SR Telecom Inc.
    Investors:
    Marc Girard
    Senior vice-president and CFO
    514-335-2429, Ext. 4690
    or
    Media:
    Anna di Giorgio
    Vice-president-Communications
    514-335-2429, Ext. 4605
    www.srtelecom.com