Sandvine Incorporated
AIM : SAND

Sandvine Incorporated

October 19, 2006 07:00 ET

Sandvine Corporation Enters Into Binding Underwriting Agreement and Files Final Prospectus for Public Offering of Common Shares

WATERLOO, ONTARIO--(CCNMatthews - Oct. 19, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Sandvine Corporation ("Sandvine") (AIM:SAND) announced today that it has entered into a binding underwriting agreement with respect to a new issue of 7,895,000 common shares and a secondary offering of 13,158,000 common shares by certain existing shareholders of Sandvine at a price of $1.90 per common share (the "Offering"). Sandvine has filed its final prospectus in respect of the Offering with the securities regulatory authorities in each of the provinces and territories of Canada. The common shares have been conditionally approved for listing on the Toronto Stock Exchange under the symbol "SVC". Sandvine's existing issued common shares are currently admitted to trading on the AIM Market of the London Stock Exchange (AIM:SAND) and application will be made for admission of the new common shares to trading on AIM.

The Offering is being underwritten by a syndicate of investment banks led by Canaccord Capital Corporation and CIBC World Markets Inc. which includes RBC Dominion Securities Inc., BMO Nesbitt Burns Inc. and National Bank Financial Inc. The underwriters have been granted an option to purchase up to an additional 15% of the number of shares sold under the Offering from certain of the existing shareholders of Sandvine at a price of $1.90 per common share at any time within 30 days of the closing of the Offering.

It is expected that the Offering will close on or about October 26, 2006 and is subject to customary closing conditions.

The common shares to be issued pursuant to this proposed offering have not been, and will not be, registered under the United Securities Act of 1933, as amended (the "Act") and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act. Accordingly, this press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or same would be unlawful prior to qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements

Any forward-looking statements in this press release are based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from projections suggested in any forward-looking statements due to a number of risks including those associated with the business of Sandvine, the proposed offering and regulatory matters. Sandvine assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties are contained in Sandvine's prospectus filed with the Canadian securities regulatory authorities, available at www.sedar.com.

About Sandvine Corporation (LSE AIM: SAND)

Sandvine is headquartered in Waterloo, Ontario, Canada and has operations worldwide. Sandvine develops and markets broadband network management equipment and solutions for use by residential broadband service providers. Its network management equipment and solutions help residential broadband service providers identify the types and behaviours of traffic on their networks, with the aim of allowing service providers to improve subscriber satisfaction, reduce operational costs and increase profitability.

Contact Information

  • Sandvine Corporation
    Amanda Weber
    Director, Communications
    +1 519 880-2600
    or
    Sandvine Corporation
    Scott Hamilton
    Chief Financial Officer
    +1 519 880-2600
    or
    Buchanan Communications
    Jeremy Garcia/Bobby Morse/James Strong
    + 44 20 7466 5000