REDLINE COMMUNICATIONS ANNOUNCES SETTLEMENT IN PRINCIPLE OF CLASS ACTION LAW SUIT

TORONTO, June 28, 2011 /CNW/ - Redline Communications Group Inc. (TSX: RDL) ("Redline" or the "Company"), announced today that it has reached an agreement in principle to settle the proposed class action lawsuit commenced in Ontario in September of 2010 against the Company, certain of its current and former directors and officers, and its former auditors. These claims remain unproven and the action has not received court approval.

The agreement in principle provides for the settlement, release and dismissal of all claims asserted against the Company, its former auditors and the individual proposed defendants.

Substantially all of the anticipated contribution to the settlement amount from Redline and the individual proposed defendants is to be funded through their insurance coverage, the remaining nominal amount being funded by the Company. The agreement in principle remains subject to final settlement documents and receipt of court approval. The settlement does not constitute any admission of liability by Redline or its officers, directors and employees.

About Redline Communications

Redline Communications (www.rdlcom.com), founded in 1999, is a publicly traded company on the Toronto stock exchange that manufactures powerful and versatile wireless broadband systems used to cost‐effectively deploy distributed applications and services and to power 4G networks.  Telecom Service Providers across the globe use Redline products to power their 4G networks; municipalities to quickly and easily deploy or extend their video surveillance networks; oil and gas companies to monitor the operation of their oil wells; enterprises to bring business grade access to buildings; and military organizations to create secure networks in any location.  For over 10 years Redline has been delivering reliable wireless solutions to thousands of customers in over 100 countries, with the strong combination of high capacity, speed, and range.  Redline products are marketed and supported through an exclusive network of value added resellers in the Americas, Mexico, the Middle East and Africa.

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NOTE: All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

Forward Looking Statements

Certain statements in this release may constitute forward‐looking statements or forward‐looking information within the meaning of applicable securities laws and are made pursuant to the "safe harbour" provisions of such laws.  Readers are cautioned not to place undue reliance on such statement. Unless otherwise required by applicable securities laws, Redline assumes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

SOURCE Redline Communications Group Inc.

For further information:

Redline Communications
Lynda Partner
lpartner@rdlcom.com
Tel: +1-613-618-3200


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