Redline Receives $12M From Warrant Conversion

Non-Dilutive Financing Will Help Fuel Growth

TORONTO, Jan. 8, 2013 /CNW/ - Redline Communications (www.rdlcom.com) Group Inc. (TSX: RDL - "Redline" or the "Company"), a leading provider of specialized broadband wireless solutions, announced today that it has now received an aggregate of approximately $11.96 million in consideration from the exercise of warrants issued as part of the Company's private placement announced in April 2011. This amount includes the amount received in the announcement on November 12, 2012, and the aggregate number of shares issued as a result of all warrants exercised (including those announced on November 12, 2012) is 3,241,204 common shares of the Company.

"Securing $12M of additional cash will allow us to accelerate our already impressive growth in the energy market, especially for larger system sales," said Eric Melka, Redline CEO.

These warrants represent some of the "First Warrants" and "Second Warrants" issued as part of the Company's private placement announced in April 2011. The exercise price was $2.30 per share in the case of the First Warrants and $4.60 per share in the case of the Second Warrants. There are 325,373 Second Warrants still to be exercised. These Second Warrants represent total expected proceeds of $1,496,713 and they must be exercised by January 28, 2013 or they will expire on that date. While the Company has no reason to believe that these above referenced warrants will not be exercised, until Redline receives the exercise forms and associated payments, there can be no assurance that they will. The company will provide additional information in due course. There are also 937,500 First Warrants representing total expected proceeds of $2,156,250 still outstanding. The expiry date on these First Warrants is June 10, 2014.

The warrants have previously been reported in the Company's financial statements and management discussion and analysis and as a result, the total potential diluted common shares outstanding have not changed as a result of this warrant exercise.

Note: All amounts reported in this press release are in CDN dollars.

About Redline Communications
Redline Communications (www.rdlcom.com) is the innovator of Virtual Fiber™, a rugged wireless broadband solution used to cost-effectively deploy and extend secure networks, enable machine-to-machine (M2M) applications, connect digital oilfields and smart grids, facilitate and enhance public safety networks, and bring Internet access wherever and whenever it's needed - regardless of terrain or remote location. For more than a decade Redline has delivered powerful, versatile and reliable wireless systems to governments, militaries, oil and gas companies and telecom service providers through its global network of certified partners.

Forward Looking Statements
Certain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws.  In some cases, forward-looking statements can be identified by terms such as "could", "expect", "may", "will", "anticipate", "believe", "intend", "estimate", "plan", "potential", "project" or other expressions concerning matters that are not historical facts.  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 Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management's current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the "Assumptions").  While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.

Many risks, uncertainties and other factors could cause the actual results of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: significant competition, competitive pricing practices, cautious capital spending by customers, industry consolidations, rapidly changing technologies, evolving industry standards, frequent new product introductions, short product life cycles and other trends and industry characteristics affecting the telecommunications industry; any material, adverse effects on Redline's performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline's suppliers and contract manufacturing agreements including the Company's reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline's efforts to expand internationally; a failure to protect Redline's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; and Redline's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy (collectively, the "Risks"). For additional information on these Risks, see Redline's most recently filed Annual Information Form ("AIF") and MD&A, which are available on SEDAR at www.sedar.com and on the Company's website at www.redlinecommunications.com. Redline assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All forward looking statements contained in this release are expressly qualified in their entirety by this cautionary statement.

SOURCE: Redline Communications Group Inc.

For further information:

Redline Contact(s)
Lynda Partner
Communications
+1-613-618-3200
lpartner@rdlcom.com

George Kypreos
Chief Financial Officer
+1-905-479-8344
gkypreos@rdlcom.com

Twitter: @rdlcom
Press Kit: http://redline.mobilitypr.com