Vecima Networks Inc.
TSX : VCM

Vecima Networks Inc.

September 29, 2006 14:15 ET

VCom to Acquire Additional Assets from Wave Wireless

VICTORIA, BRITISH COLUMBIA--(CCNMatthews - Sept. 29, 2006) - VCom Inc. (TSX:VCM), a leader in broadband last mile access technology, announces today that it has executed a letter of intent which sets forth the preliminary terms and conditions of the acquisition of the additional assets associated with the Sales and Marketing components of Wave Wireless Corporation's 900 MHz business. Under the terms of the proposed agreement, VCom will acquire the operational assets of Wave Wireless' wholly owned subsidiary; WaveRider Communications Inc. VCom also intends to expand engineering, sales and operational personnel associated with the 900 MHz products.

"With the acquisitions of these WaveRider assets and their large established customer base, VCom will move into the forefront of non-line of sight, high speed, wireless internet access equipment which utilizes the unlicensed 900 MHz band," said VCom Chairman and CEO, Dr. Surinder Kumar. "At the same time, combining VCom's world class development capabilities and financial resources with WaveRider's best in class non-line of sight technologies will ensure that VCom can meet the requirements of this growing market."

"We intend to both preserve and enhance the 900 MHz revenues commenced in our earlier purchase of WaveRider Canada," said Dr. Kumar. "The product line is a natural complement to our existing line of BWIN and WiMAX point-to-multipoint radios and systems."

About VCom

VCom Inc. designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. VCom's hardware products incorporate embedded software developed by it to meet the complex requirements of next-generation, high-speed digital networks. Service providers use VCom's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. VCom's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile", by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. VCom's products are directed at three principal markets: Data over Cable, Broadband Wireless and Digital Video. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. VCom currently employs over 600 people in Western Canada. Pending shareholder approval at VCom's Annual and Special Meeting, slated for November 13, 2006, the Company plan to change its name to Vecima Networks Inc.

About Wave Wireless Corporation

Wave Wireless is a developer of wireless broadband solutions, offering wireless mesh routers, and fixed and mobile NLOS products that can be deployed rapidly and cost-effectively in all types of environments. Wave Wireless' carrier-class solutions are used for applications ranging from mission critical public safety communications, video surveillance, municipal networks, and private enterprise networks to last mile broadband access. Wave Wireless solutions have been deployed by first responders, telecom carriers, municipalities, WISPs, utilities, security companies and the military. For more information, visit www.wavewireless.com.

Forward-Looking Statements

This news release contains forward-looking statements which are not historical facts, but are based on certain assumptions and reflect VCom's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. VCom disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

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