DragonWave Inc. Announces Filing Of Final Short Form Prospectus



    /THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES
    NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

    OTTAWA, Sept. 14 /CNW/ - DragonWave Inc. ("DragonWave" or the "Company")
(TSX: DWI, AIM: DWI) is pleased to announce that it has filed a final short
form prospectus with the securities regulatory authorities in all provinces of
Canada, except Québec, in connection with public offering of common shares
previously announced on September 6, 2007.
    The Offering is made pursuant to an underwriting agreement entered into
on September 7, 2007 with a syndicate of underwriters led by Canaccord Capital
Corporation and including CIBC World Markets Inc., Genuity Capital Markets
G.P., Orion Securities Inc. and Raymond James Ltd. (collectively, the
"Underwriters") for the purchase by the Underwriters of 3,800,000 common
shares issued from treasury and 3,200,000 common shares to be sold by certain
selling shareholders, at a price of C$6.25 ((pnds stlg)2.94) per common share,
for aggregate gross proceeds of C$43,750,000 ((pnds stlg)20,580,000) (the
"Offering").
    The Company has granted the Underwriters an over-allotment option (the
"Over-Allotment Option"), exercisable for a period of 30 days following the
closing of the Offering, to purchase up to that number of common shares equal
to 15 percent of the number of common shares sold pursuant to the Offering. If
the Over-Allotment Option is exercised in full, the gross proceeds of the
Offering will increase to C$50,312,500 ((pnds stlg)23,667,000).
    As previously announced, the net proceeds from the proposed treasury
offering will be used by the Company primarily to continue to fund its efforts
to increase sales penetration in regions outside North America, to fund
development of the Company's next generation of wireless Ethernet products and
related improvements to existing products, to engage in marketing efforts to
further raise the Company's profile, to strengthen the Company's balance
sheet, to provide an available source of funding for potential future
acquisition opportunities and for general corporate purposes.
    An amended and restated preliminary prospectus for the Offering was filed
on September 7, 2007 in each of the provinces of Canada (except Québec) to
include pricing and other terms of the Offering.
    The Offering is expected to close on or about September 20, 2007.

    This press release is not an offering of securities for sale in the
United States. The common shares have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an exemption from the registration
requirements of that Act.

    About DragonWave

    DragonWave(TM) is a leading provider of high-capacity wireless Ethernet
equipment used in emerging IP networks. DragonWave designs, develops, and
markets carrier-grade microwave radio frequency networking equipment that
wirelessly transmit broadband voice, video and other data. DragonWave's
wireless Ethernet products, which are based on a native Ethernet platform,
function as a wireless extension to an existing fibre-optic core
telecommunications network. The principal application for DragonWave's
products is the backhaul function in a wireless communications network.
Additional applications for DragonWave's products include point-to-point
transport in private networks, including municipal and enterprise networks.
DragonWave's corporate headquarters are located in Ottawa, Ontario, and have
sales locations in Europe and North America. The company's Web site is
http://www.dragonwaveinc.com

    %SEDAR: 00024992E




For further information:

For further information: DragonWave Inc., Russell Frederick, Chief
Financial Officer, (613) 599-9991 ext. 2253, rfrederick@dragonwaveinc.com;
DragonWave Inc., Nadine Kittle, Media Relations, (613) 599-9991 ext. 2262,
nkittle@dragonwaveinc.com; Canaccord Adams Limited, Chris Bowman, Tel: 44 20
7050 6500, Chris.Bowman@CanaccordAdams.com; Weber Shandwick Financial, John
Moriarty, Tel: 020 7067 0736, Mob: 07971 402224, jmoriarty@webershandwick.com


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