DragonWave Inc.

DragonWave Inc.

April 16, 2007 13:25 ET

DragonWave Inc. Files Final Prospectus and Announces Pricing for Initial Public Offering of Common Shares

OTTAWA, ONTARIO--(CCNMatthews - April 16, 2007) - Not for distribution to U.S. or U.K. newswire services or for dissemination in the United States or the United Kingdom. Any failure to comply with this restriction may constitute a violation of U.S. securities law. This press release does not constitute an offer to sell any of the common shares in the United States or to U.S. persons.

DragonWave Inc. ("DragonWave") announced today that it has entered into an underwriting agreement and has filed its final prospectus with securities regulatory authorities in each of the provinces of Canada and in the United Kingdom in connection with an initial public offering of 7,595,000 common shares at a price of Cdn.$3.95 (pounds sterling 1.75) per share. Closing is scheduled to take place on or about April 19, 2007. In addition, DragonWave has granted to the underwriters an option to purchase up to an additional 1,139,250 common shares at the same price to cover over-allotments, if any, and for market stabilization purposes.

This offering is underwritten by a syndicate of underwriters led by Canaccord Capital Corporation and including CIBC World Markets Inc. and Genuity Capital Markets G.P. DragonWave has received conditional approval for the listing of its common shares on the Toronto Stock Exchange under the symbol "DWI", subject to DragonWave fulfilling all of the requirements of the Toronto Stock Exchange. DragonWave has also applied for the admission of its common shares to AIM, a market operated by London Stock Exchange plc, also under the symbol "DWI", subject to DragonWave fulfilling all of the requirements of AIM.

About DragonWave Inc.

Founded in 2000, DragonWave™ is a leading provider of high-capacity wireless Ethernet equipment used in emerging IP networks. DragonWave designs, develops, markets and sells proprietary, carrier-grade microwave radio frequency networking equipment, or links that wirelessly transmit broadband voice, video and other data between two points. DragonWave's wireless carrier-Ethernet links, 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 applications in private networks, including municipal and enterprise applications.

DragonWave™ is a trade-mark of DragonWave Inc.

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