Redline Communications Announces Updated Fiscal 2009 Guidance and
Organizational Changes

All figures in US Dollars unless otherwise specified

TORONTO, Jan. 8 /CNW/ - Redline Communications Inc., (TSX/AIM: RDL) a leading provider of broadband wireless infrastructure and standards-based WIMAX products, today updated its revenue guidance for the fiscal year ended December 31, 2009. Figures cited in this news release are based on preliminary, unaudited financial data and are subject to change as a result of the year-end audit process.

For 2009, Redline expects revenue of approximately $38.0 million. This is in comparison to the Company's previous 2009 guidance of annual revenue levels similar to 2008 revenue of $43.5 million. In addition, the Company does not expect to meet its fourth quarter target of positive EBITDA(1) and cash flow.

Redline also announced today that it has reduced its workforce globally by approximately 10%, including Chief Operating Officer, Jim Dickerman, and other members of the senior management team, as the Company intends to narrow its geographic focus going forward. Redline has scaled back its operations in Europe and Asia Pacific, and will concentrate its efforts on the Americas and Middle East where the Company is a major player.

"We have taken the necessary steps to better focus on the geographic regions where we have a strong presence and have historically driven the most growth, realigning our organizational structure accordingly," said Eric Melka, Redline's Acting Chief Executive Officer and Member of the Redline Board of Directors. "The Board of Directors believes these changes are key in maintaining the long-term viability of the Company and preserving shareholder value. Along with these organizational changes, I am pleased to announce the appointment of Kevin Gilbride, Corporate Comptroller of Redline, as Interim Chief Financial Officer. The Board is actively engaged in a search for a new Chief Executive Officer, and is expected to make an announcement by the end of Q1. We continue to work to strengthen the business, and we look forward to outlining our updated strategic plan once the new leadership of the Company is in place."

Redline expects to report its complete fiscal 2009 audited financial results in March.

    
    (1) See the Company's Q3 2009 MD&A for a complete definition. It is
        available on SEDAR
    

About Redline Communications

Redline Communications (www.redlinecommunications.com) is the leading provider of fixed and mobile standards-based wireless broadband solutions. Redline's RedMAX(TM) WiMAX Forum Certified(TM) system, RedMAX 4C Mobile WiMAX(TM) products, and its award-winning broadband wireless infrastructure family of products - RedCONNEX(TM) and RedACCESS(TM) - enable service providers and other network operators to cost-effectively deliver high-bandwidth services, including voice, video and data communications. Redline is committed to maintaining its wireless industry leadership with the continued development of WiMAX and other advanced wireless broadband products. With more than 150,000 installations in 130 countries, and a global network of over 160 partners, Redline's experience and expertise helps service providers, enterprises and government organizations roll out wireless broadband networks to support advanced communications.

Forward-Looking Statements

Certain statements in this release, including the estimate of future revenues, sales, margins, EBITDA and cash flow provided above, 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 affects 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 2008 Annual 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: For further information: Redline Communications, Carolyn Anderson, canderson@redlinecommunications.com, Tel: (905) 479-8344; Equicom Group, Craig Armitage, Kristen Dickson, carmitage@equicomgroup.com, kdickson@equicomgroup.com, Tel: (416) 815-0700


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