DragonWave Inc. Announces Proposed Common Share Offering



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

    OTTAWA, Sept. 6 /CNW/ - DragonWave Inc. (TSX: DWI, AIM: DWI) (the
"Company") announced today that it has filed a preliminary short form
prospectus in each of the provinces of Canada, other than Québec, in
connection with an overnight-marketed public offering (the "Offering") of
common shares. The Offering will include both a treasury offering by the
Company and a secondary offering by certain selling shareholders. The Offering
will be led by Canaccord Capital Corporation. The Company has granted the
underwriters an over-allotment option to purchase that number of additional
common shares equal to up to 15% of the common shares sold pursuant to the
Offering, exercisable at any time up to 30 days from the closing of the
Offering. The Offering is subject to certain conditions, including regulatory
approval.
    The Offering will be priced in the context of the market with final terms
of the Offering to be determined at the time of pricing. 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.
    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, markets
and sells proprietary, carrier-grade microwave radio frequency networking
equipment, or links 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 to perform 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.

    Investors and security holders may obtain the preliminary prospectus free
of charge on SEDAR website maintained by the Canadian Securities
Administrators at http://www.sedar.com, a link to the same is also available
on the Company's website www.dragonwaveinc.com.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

    Certain statements included in this news release constitute "forward
looking" statements within the meaning of securities laws.
    Forward-looking information may relate to our future outlook and
anticipated events or results and, in some cases, can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue", or other
similar expressions concerning matters that are not historical facts.
    These statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business prospects and
opportunities. While we consider these assumptions to be reasonable based on
information currently available to us, they may prove to be incorrect.
    Forward looking-information is also subject to certain factors, including
risks and uncertainties that could cause actual results to differ materially
from what we currently expect. These factors include changes in market and
competition, governmental or regulatory developments and general economic
conditions.

    %SEDAR: 00024992E




For further information:

For further information: INVESTOR RELATIONS CONTACT, Russell Frederick,
CFO, DragonWave Inc., Tel: (613) 599-9991 ext: 2253, Fax: (613) 599-4225,
E-mail: investor@dragonwaveinc.com; Nadine Kittle, DragonWave Inc., Media
Relations, (613) 599-9991 ext. 2262, Email: nkittle@dragonwaveinc.com; John
Moriarty, Weber Shandwick Financial (for DragonWave), Tel: 020 7067 0736, Mob:
07971 402224, jmoriarty@webershandwick.com; AIM NOMAD, Chris Bowman or Andrew
Chubb, Canaccord Adams Limited, +44 20 7050 6500


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890