DragonWave Inc.
TSX : DWI
AIM : DWI

DragonWave Inc.

September 14, 2007 20:51 ET

Dragonwave Inc. Announces Filing of Final Short Form Prospectus

THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

OTTAWA, CANADA--(Marketwire - Sept. 14, 2007) - DragonWave Inc. ("DragonWave" or the "Company") (TSX:DWI)(AIM:DWI) is pleased to announce that it has filed a final short form prospectus with the securities regulatory authorities in all provinces of Canada, except Quebec, in connection with public offering of common shares previously announced on September 6, 2007.

The Offering is made pursuant to an underwriting agreement entered into on September 7, 2007 with a syndicate of underwriters led by Canaccord Capital Corporation and including CIBC World Markets Inc., Genuity Capital Markets G.P., Orion Securities Inc. and Raymond James Ltd. (collectively, the "Underwriters") for the purchase by the Underwriters of 3,800,000 common shares issued from treasury and 3,200,000 common shares to be sold by certain selling shareholders, at a price of C$6.25 (pounds sterling 2.94) per common share, for aggregate gross proceeds of C$43,750,000 (pounds sterling 20,580,000) (the "Offering").

The Company has granted the Underwriters an over-allotment option (the "Over-Allotment Option"), exercisable for a period of 30 days following the closing of the Offering, to purchase up to that number of common shares equal to 15 percent of the number of common shares sold pursuant to the Offering. If the Over-Allotment Option is exercised in full, the gross proceeds of the Offering will increase to C$50,312,500 (pounds sterling 23,667,000).

As previously announced, the net proceeds from the proposed treasury offering will be used by the Company primarily to continue to fund its efforts to increase sales penetration in regions outside North America, to fund development of the Company's next generation of wireless Ethernet products and related improvements to existing products, to engage in marketing efforts to further raise the Company's profile, to strengthen the Company's balance sheet, to provide an available source of funding for potential future acquisition opportunities and for general corporate purposes.

An amended and restated preliminary prospectus for the Offering was filed on September 7, 2007 in each of the provinces of Canada (except Quebec) to include pricing and other terms of the Offering.

The Offering is expected to close on or about September 20, 2007.

This press release is not an offering of securities for sale in the United States. The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

About DragonWave

DragonWave™ is a leading provider of high-capacity wireless Ethernet equipment used in emerging IP networks. DragonWave designs, develops, and markets carrier-grade microwave radio frequency networking equipment that wirelessly transmit broadband voice, video and other data. DragonWave's wireless Ethernet products, which are based on a native Ethernet platform, function as a wireless extension to an existing fibre-optic core telecommunications network. The principal application for DragonWave's products is the backhaul function in a wireless communications network. Additional applications for DragonWave's products include point-to-point transport in private networks, including municipal and enterprise networks. DragonWave's corporate headquarters are located in Ottawa, Ontario, and have sales locations in Europe and North America. The company's Web site is http://www.dragonwaveinc.com

Contact Information