Vecima Networks Inc.

Vecima Networks Inc.

November 17, 2010 08:00 ET

Vecima Networks Announces Sale of Radio Spectrum to Inukshuk Wireless Partnership

VICTORIA, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - Vecima Networks Inc. (TSX:VCM) is pleased to announce that its subsidiary YourLink Inc. has entered into a definitive agreement for the sale of its Saskatchewan 2.5-2.6 GHz spectrum to Inukshuk Wireless Partnership, a partnership of affiliates of Rogers Communications and Bell Canada, for $14 million. The transaction is subject to customary conditions including the receipt of all requisite regulatory approvals, and is expected to close in several phases as those approvals are received. The licenses to be sold represent approximately 7.5% of the Canadian spectrum owned by YourLink.

YourLink will ensure a smooth transition of its Internet customers to alternate spectrum owned by YourLink which will open up significantly higher capacity and bandwidth for those customers. Subject to regulatory approval, the agreement allows YourLink continued use of the spectrum sold to Inukshuk for one year after the agreement date. YourLink currently provides video and broadband Internet access to approximately 19,000 customers through digital wireless services in Saskatchewan and several small cable TV systems in rural British Columbia. Following the sale of the 2.5-2.6 GHz spectrum, YourLink will transition its wireless video customers in Saskatchewan to alternate service providers. Current revenue from video customers in Saskatchewan is only a minor part of YourLink wireless revenues.

"As we have said in multiple quarterly calls, Vecima believes that the market value of YourLink's total spectrum holdings before this sale is in the $35 to $50 million range. We are pleased that this agreement provides strong evidence of the significant value contained within Vecima's asset base built over 22 years of profitable operations. Further, the transition to other spectrum will allow us not only to introduce a new generation of our own advanced Internet radios, but also to expand service speed and bandwidth to our growing customer base," said Dr. Surinder Kumar, President and CEO of Vecima Networks. "YourLink is a successful and growing component of our Canadian business and we look forward to enhancing our service to residential and commercial customers throughout Saskatchewan."

About Vecima Networks
Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima'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. Vecima'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. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. 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. For further information, visit

About YourLink
YourLink provides innovative high-speed fixed wireless Internet solutions to residential and business subscribers in Saskatchewan and video and broadband internet service through several small cable TV systems in British Columbia. Headquartered in Saskatoon, YourLink Inc. is a subsidiary of Vecima Networks Inc. (TSX:VCM). YourLink was formed in 2003 to meet the growing demands of high speed Internet in rural areas. YourLink is one of Saskatchewan's largest providers of high-speed fixed wireless Internet solutions to rural and remote communities. YourLink's fixed wireless broadband and cable networks are continually expanding and provide video services and/or high speed Internet service to approximately 19,000 subscribers in several communities and rural regions in Saskatchewan and British Columbia. YourLink offers many services including residential and business Internet solutions, secondary or redundant Internet connections, private network solutions, web design, webhosting, and remote backup and storage. To learn more about YourLink, visit

Forward-Looking Statements
Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding the expected closing of the sale of spectrum by YourLink. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. In this case, those risks include the possibility that the conditions to the sale, including the receipt of all requisite regulatory approvals, will not be met. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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