SR Telecom & Co.
TSX : SRX

SR Telecom & Co.
Groupe Lagassé

Groupe Lagassé

March 24, 2008 06:00 ET

SR Telecom Signs Asset Purchase Agreement with Groupe Lagasse

- Provides product and service continuity for SR Telecom's global customers - Provides needed financial stability to fully resume normal operations - Re-establishes SR Telecom's ability to thrive in the global WiMAX market - Protects high-technology jobs in Montreal

MONTREAL, QUEBEC, CANADA--(Marketwire - March 24, 2008) - SR Telecom (TSX:SRX), a leading vendor in the global WiMAX market, today announced that it has signed an asset purchase agreement (APA) with Sherbrooke (Quebec) based Groupe Lagasse, an international holding company with manufacturing, products and services business units delivering leading edge communications solutions for the private and public sectors, for the purchase of the majority of SR Telecom's assets, including its WiMAX Forum-certified symmetryMX product line, for an aggregate consideration of $6,050,000 payable at closing and by the assumption of certain stated liabilities. The transaction, once completed, will provide continuity for SR Telecom's international customer base and permit the Company to grow and capitalize on its many WiMAX opportunities. The transaction, which is subject to certain closing conditions and court approval, is expected to close on or before April 4, 2008.

"We are pleased to reach this agreement with Groupe Lagasse," said Serge Fortin, President and CEO of SR Telecom. "Their international presence, financial strength and entrepreneurial spirit, along with their knowledge and expertise in the high technology field, make Groupe Lagasse a strong financial and operational purchaser for SR Telecom's business. This deal clearly benefits our employees and our customers around the world as it will enable us to quickly resume normal operations, and accelerate the development, delivery and deployment of our leading-edge WiMAX solutions."

"Groupe Lagasse had been searching for ways to tap in to the WiMAX market for quite some time," said Louis Lagasse, Chairman of Groupe Lagasse. "In SR Telecom, we saw an organization possessing a solid business plan, a strong management team, a significant order pipeline, and an unequalled depth of expertise and experience in wireless telecommunications. This acquisition allows us to leverage the synergies between our current organization and SR Telecom to immediately enter the rapidly-growing global WiMAX market as a major player with a feature-rich, field-proven product line."

Under terms of the agreement, Groupe Lagasse will purchase SR Telecom's brand, trademarks, intellectual property, patents, inventories and equipment relating to its symmetryMX product line. It is not expected that SR Telecom shareholders will receive any value out of the proceeds of such sale.

SR Telecom filed for creditor protection under the CCAA on November 19, 2007. On February 29, 2008, it announced that it had obtained an order from the Quebec Superior Court to extend the period of the Court-ordered stay of proceedings against SR Telecom under the CCAA to May 2, 2008.

About Groupe Lagasse

Groupe Lagasse is an international company with manufacturing and products business units that focus on providing leading edge, rugged, high reliability, and high availability solutions for the private and public sectors. Its activities include electronic manufacturing expertise for secure radio and telecom products that address the entire product life cycle. The Group also develops advanced carrier grade VoIP access devices, gateways, secure SIP-based software solutions and secure, ruggedized, active RFID solutions. These are complemented by outsourced contact center solutions and automated interactive voice services that can deliver a single message to as many as 10,000 recipients per hour, via phone, mobile phone, SMS and e-mail. Groupe Lagasse is a privately held holding whose sales, in 2007, exceeded $200 M Cnd; the group has operations in Europe and North America and employs over 1,000 people worldwide. For more information about Groupe Lagasse, visit www.groupelagasse.com.

About SR Telecom

SR Telecom (TSX:SRX) is a recognized global leader in delivering innovative broadband wireless access (BWA) solutions that enable service providers to efficiently deploy quality voice, Internet and next-generation services in urban, suburban and remote areas. A technological pioneer with more than 25 years of experience in wireless networking, SR Telecom is the only BWA vendor with extensive real-world expertise in deploying the advanced features of the WiMAX standard. It actively promotes standards-based BWA networking through its role as a principal member of the WiMAX Forum. With its primary offices in Montreal and Mexico City, SR Telecom is an agile, customer-focused organization with a proven track record. SR Telecom's products are currently deployed in more than 110 countries worldwide. For more information, visit www.srtelecom.com.

FORWARD-LOOKING STATEMENTS

Certain information in this news release, in various filings with Canadian and US regulators, in reports to shareholders and in other communications, is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among others, information with respect to the Company's objectives and the strategies to achieve those objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of March 24, 2008.

The results or events predicted in such forward-looking information may differ materially from actual results or events. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.

For a more complete discussion of the assumptions and risks underlying our forward-looking statements, please refer to the section entitled Assumptions, risks and uncertainties in the Company's management's discussion and analysis for the year ended December 31, 2006 as updated by the Company's Management's discussion and analysis for subsequent interim periods and the section entitled Risk factors in the Company's annual report on Form 20-F for the year ended December 31, 2006, which can be found under the Company's name at www.sedar.com, at www.sec.gov and on the Company's website at www.srtelecom.com. The forward-looking information contained in this news release represents expectations of SR Telecom as of March 24, 2008 and, accordingly, is subject to change. However, SR Telecom expressly disclaims any intention or obligation to revise any forward-looking information, whether as a result of new information, events or otherwise, except as required by applicable law.

SR TELECOM, symmetry, symmetryONE and symmetryMX are trademarks of SR Telecom Inc. All rights reserved 2008. All other trademarks are property of their owners.

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