Redline Communications Group Inc. Files Final Prospectus for Public Offering of Common Shares raising CDN$40 million


    MARKHAM, ON, Oct. 19 /CNW/ - Redline Communications Group Inc. ("RCG")
announced today that it has filed a final prospectus with the securities
regulatory authorities in each of the provinces and territories of Canada in
connection with its initial public offering raising approximately CDN $40
million and comprising 4,625,000 common shares and a secondary offering of
1,530,000 common shares by certain existing shareholders at a price of CDN
$6.50 per common share (the "Offering"). The common shares have been
conditionally approved for listing on the Toronto Stock Exchange and, upon
closing of the Offering, will be admitted to trading on the AIM market of the
London Stock Exchange plc.
    The Offering is being underwritten by a syndicate of investment banks,
which is co-led by CIBC World Markets Inc. and Canaccord Capital Corporation,
and includes Dundee Securities Corporation, GMP Securities L.P. and RBC
Dominion Securities Inc. The underwriters have been granted an option to
purchase up to an additional 15% of the number of common shares sold under the
Offering from RCG at a price of CDN$6.50 per common share at any time within
30 days of the closing of the Offering.
    The Offering is expected to close on or about October 25, 2007 and is
subject to customary closing conditions.
    The common shares to be issued pursuant to the Offering have not been,
and will not be, registered under the United Securities Act of 1933, as
amended (the "Act") and may not be offered or sold in the United States absent
registration or any applicable exemption from the registration requirement of
such Act. Accordingly, this press release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
these securities in any jurisdiction in which such offer, solicitation or same
would be unlawful prior to qualification under the securities laws of any such

    About Redline Communications Group Inc.

    Upon closing of the offering, Redline Communications Group Inc. (RCG)
will be a holding company of Redline Communications Inc. ("Redline"), a
leading provider of standards-based wireless broadband solutions. Redline's
RedMAX(TM) WiMAX Forum Certified(TM) systems, RedMAX 4C(TM) Mobile WiMAX
products and award-winning RedCONNEX(TM) family of broadband wireless
infrastructure products 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 50,000  installations in 80 countries, and
a global network of over 100 partners, Redline's experience and expertise
helps service providers, enterprises and government organizations roll out the
services and applications that drive their business forward. For additional
information, please visit

    Forward-Looking Statements

    Any forward-looking statements in this press release are based on current
expectations that are subject to significant risks and uncertainties that are
difficult to predict. Actual results may differ materially from projections
suggested in any forward-looking statements due to a number of risks including
those associated with the business of RCG, the proposed offering and
regulatory matters. RCG assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from
those reflected in the forward-looking statements. Readers are cautioned not
to place undue reliance on forward-looking statements. Additional information
identifying risks and uncertainties are contained in RCG's final prospectus
filed with the Canadian securities regulatory authorities, available at

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

For further information:

For further information: Redline Communications, Tel: (905) 479-8344,
Tom Hearne, Chief Financial Officer, Carolyn Anderson, Communications
Director,; Equicom Group, Tel: (416)
815-0700, Craig Armitage, Vanessa Beresford,;
Buchanan Communications, Tel: +44 (0)20 7466 5000, Jeremy Garcia, James
Strong,; Canaccord Adams, Tel: +44 (0)20 7050 6500,
Chris Bowman

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