Sandvine Corporation

Sandvine Corporation

December 01, 2009 07:00 ET

Sandvine Management Surrenders Stock Options

WATERLOO, ONTARIO--(Marketwire - Dec. 1, 2009) -

Attention: Technology Editors

Sandvine, (TSX:SVC)(AIM:SAND) a leading provider of intelligent broadband network solutions for cable, DSL, FTTx, fixed wireless and mobile operators, today announced that certain members of Sandvine's management team have surrendered, for no consideration, 780,000 stock options previously issued to them. Sandvine has canceled the options.

"These options were not providing sufficient short-term value to Sandvine and this additional capacity in our option pool can be better used in the future to attract and retain the best talent to help Sandvine become the leading supplier of network policy control solutions for all broadband access markets," said Dave Caputo, Sandvine's president and chief executive officer.

As a result of the surrender, the unamortized expense related to these options of $1.7 million will be immediately recognized. The Company anticipates that its non-cash stock-based compensation expense for the fourth quarter of 2009 will be $1.7 million higher than it would have otherwise been, had the surrender not taken place. The Company also expects that its non-cash stock-based compensation expense will be reduced by $0.6 million in fiscal years 2010 and 2011 and by $0.5 million in fiscal year 2012 as a result of the surrender.

Of the 780,000 surrendered options, 520,000 had a strike price of $6.59 and an expiry date in July 2017. The remaining 260,000 options had a strike price of $4.05 and an expiry date in January 2018. For the purposes of disclosure under the rules of the AIM market, Sandvine confirms that Dave Caputo, CEO, and Scott Hamilton, CFO, each also being Directors of Sandvine, have surrendered 150,000 and 90,000 options respectively in connection with the above.

Sandvine is focused on protecting and improving the quality of experience on the Internet. Our award-winning network equipment and solutions help cable, DSL, FTTx, fixed wireless and mobile operators better serve their subscribers and understand network trends; offer new services; mitigate malicious traffic; manage network congestion; and deliver QoS-prioritized multimedia services. With broadband service provider customers in over 70 countries serving hundreds of millions of fixed and mobile subscribers, Sandvine is enhancing the Internet experience worldwide.

Certain statements in this press release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Statements related to Sandvine's projected revenues, earnings, growth rates, revenue mix and product plans are forward-looking statements as are any statements relating to future events, conditions or circumstances. The use of terms such as "may", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.

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