RuggedCom Acquires WiNetworks Ltd.

    
    Acquisition extends the RuggedCom Smart Grid strategy by adding WiMAX
    wireless broadband technology
    

RUGGEDCOM INC. ("RUGGEDCOM") (TSX:RCM), WOODBRIDGE, ON, Sept. 17 /CNW/ - RuggedCom, a leading designer and manufacturer of rugged communications networking solutions for mission critical applications in harsh environments, today announced it has purchased WiNetworks Ltd., a leader in the development of systems based on WiMAX 802.16e mobile broadband wireless technology. WiNetworks' technology is used by large private networks and service providers to extend mobile broadband connectivity over metropolitan areas. The Winetworks WiMAX products will form the new RuggedMAX(TM) product line and augment Ruggedcom's growing RuggedWIRELESS(TM) portfolio.

WiNetworks is composed of a team of wireless industry veterans who were early adopters of WiMAX technology. WiNetworks was the first company in the world to develop a small form factor base station based on the IEEE 802.16e standard and have it certified by the WIMAX forum certification wave 2, including MIMO functionality. Late last year WiNetworks became the first company to have a mobile WiMAX product certified by the FCC in the 3.65 GHz frequency band in the United States. WiNetworks has 57 employees with more than half of the staff in engineering roles.

"We created a RuggedWIRELESS(TM) division earlier this year in order to capitalize on a huge market opportunity for wireless technology in our target markets" explains Marzio Pozzuoli, President and CEO of Ruggedcom. "Last month we added a 3G cellular router to our product offering to give our customers a wireless WAN option through the cellular service providers. Many of our customers are looking to deliver that same type of service, but maintain a greater level of control over the performance, reliability and security of the network. WiMAX is the best technology available to extend private IP networks wirelessly in a standards-based way. The WiNetworks product line is ideally suited to mate with our industry leading hardened networking products and drive automation further into the electric grid."

The WiNetworks product offering consists of small form factor base station variants with differing power options and are available in a choice of licensed and unlicensed bands. In addition, WiNetworks has a line of subscriber devices for fixed and mobile applications. WiNetworks offers an open end-to-end solution by providing full interoperability with several third party device manufacturers and various ASN gateway vendors. WiNetworks has developed an additional mode of products which allows for full operation without the use of an ASN gateway, thereby increasing robustness and reducing costs and complexity - ideally suited for private network users.

"We are very excited about the addition of WiNetworks to the RuggedWIRELESS(TM) division," said Elik Jaeger, Vice President, RuggedWIRELESS(TM). "We believe the combination of the WiNetworks product portfolio and engineering talent puts us in an immediate leading position in the WiMAX field and complements our wireless LAN switches and cellular routers, giving us a complete wireless product portfolio. WiNetworks has significant traction with strategic partners and end users, which will complement our strength in the vertical markets."

WiNetworks has shipped thousands of mobile WiMAX systems around the world. RuggedCom is already engaged with RuggedMAX(TM) in trials and pilots with major electric utilities.

Under the terms of the share purchase agreement, RuggedCom will pay approximately US $9 million in cash to acquire all the shares of WiNetworks plus assume WiNetworks' debt of approximately US $5 million.

For more information about RuggedMAX(TM) please visit www.RuggedCom.com

    
    About RuggedCom Inc.
    --------------------
    

RuggedCom is a leading provider of rugged communications networking solutions designed for mission-critical applications in harsh environments. RuggedCom's technology solutions include Ethernet switches, network routers, wireless devices, serial servers, media converters, software and professional services. RuggedCom's products are designed for use in harsh environments such as those found in electrical power substations and "Smart Grids", intelligent transportation systems, industrial process control and military applications. For further information, please visit www.RuggedCom.com.

    
    Forward Looking Statements
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This press release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that RuggedCom believes, expects or anticipates will or may occur in the future (including statements relating to the prospects for the business of WiNetworks as a part of RuggedCom) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of RuggedCom based on information currently available to RuggedCom. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of RuggedCom to differ materially from those discussed in the forward-looking statements, and even if the actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on RuggedCom. Factors that could cause actual results or events to differ materially from current expectations include problems with the acquired technology and difficulties integrating the acquired employees.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, RuggedCom disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although RuggedCom believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

SOURCE RUGGEDCOM INC.

For further information: For further information: For media or industry analyst support, please contact: Jamie Blakeley, Marketing Communications Coordinator, RuggedCom Inc., (905) 856-5288, 1-888-264-0006 toll free

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