DragonWave Inc.
TSX : DWI
AIM : DWI

DragonWave Inc.

September 20, 2007 09:28 ET

DragonWave Inc. Completes C$43,750,000 Common Share Offering

OTTAWA, ONTARIO--(Marketwire - Sept. 20, 2007) - THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

DragonWave Inc. ("DragonWave" or the "Company") (TSX:DWI)(AIM:DWI,) is pleased to announce the completion of the previously announced public offering involving the issuance of 3,800,000 common shares from treasury and the sale of 3,200,000 common shares by certain selling shareholders, at a price of C$6.25 (pounds sterling 2.94) per common share (the "Offering"). The Offering was completed through a syndicate 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"), pursuant to an underwriting agreement dated September 7, 2007. The Offering resulted in aggregate gross proceeds of C$43,750,000 (pounds sterling 20,580,000).

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).

"We are extremely excited with the magnitude of investor interest in DragonWave which has enabled this successful offering," said Peter Allen, President and CEO of DragonWave "DragonWave targets the global wireless communications service provider market and our products provide a solution to the current bottleneck for transmission of voice, video and other data that affects the efficiency of the backhaul portion of the telecommunications network."

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.

A final short-form prospectus for the Offering has been filed on September 14, 2007 with the securities commissions in each of the provinces of Canada (except Quebec). Application has been made for the admission of the 3,800,000 treasury shares to trading on the AIM market of the London Stock Exchange plc ("AIM"). Dealings on AIM are expected to commence on 21 September 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