Vecima Networks Announces a Restatement of Future Tax Assets for Year Ended June 30, 2007



    
    - Change limited to extraordinary earnings; no impact on operating income
    or cash flow -
    

    VICTORIA, BC, Sept. 23 /CNW/ - Vecima Networks Inc. ("Vecima") (TSX:VCM),
the Last Mile Solution(R) for broadband wired and wireless networks, today
announced that it has identified an error in valuation of the future tax asset
recorded for the fiscal year ended June 30, 2007. Investment tax credits
(ITCs) acquired in the purchase of Spectrum Signal Processing Inc. (SSP),
should have been recorded net of the future tax liability associated with the
ITCs and therefore the future tax asset was overstated by $4.4 million. There
is no impact on operating income, net income before extraordinary income or
cash flow.

    
    In summary, the restatement has the following effects:

    -------------------------------------------------------------------------
                                                    Previously
    ($ mil)                             Restated        Stated        Change
    -------------------------------------------------------------------------
    Net income before extraordinary
     gains                                  $9.5         $ 9.5           NIL
    -------------------------------------------------------------------------
    Extraordinary Gain                     $11.1         $15.5         $(4.4)
    -------------------------------------------------------------------------
    Net Income                             $20.6         $25.0         $(4.4)
    -------------------------------------------------------------------------
    Future Tax Assets                      $32.3         $36.7         $(4.4)
    -------------------------------------------------------------------------
    Retained Earnings                      $68.2         $72.6         $(4.4)
    -------------------------------------------------------------------------

    The revised annual report for the year ended June 30, 2007 is posted on
www.sedar.com.
    

    About Vecima Networks

    Vecima Networks Inc. (TSX:VCM) designs, manufactures and sells products
that enable broadband access to cable, wireless and telephony networks.
Vecima's hardware products incorporate original embedded software to meet the
complex requirements of next-generation, high-speed digital networks. Service
providers use Vecima's solutions to deliver services to a converging worldwide
broadband market, including what are commonly known as "triple play" (voice,
video and data) and "quadruple play" (voice, video, data and wireless)
services. Vecima's solutions allow service providers to rapidly and
cost-effectively bridge the final network segment that connects the system
directly to end users, commonly referred to as "the last mile," by overcoming
the bottleneck resulting from insufficient carrying capacity in legacy, last
mile infrastructures. Vecima's products are directed at two principal markets:
Converged Wired Solutions and Broadband Wireless. The Company has also
developed, and continues to focus on developing, products to address emerging
markets such as Voice over Internet Protocol, fibre to the home and IP video.
www.vecima.com





For further information:

For further information: Vecima Networks: Mike Barry, Chief Financial
Officer, (250) 881-1982, mike.barry@vecima.com; Alan Brick, Investor Relations
Officer, (250) 881-1982, invest@vecima.com

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VECIMA NETWORKS INC.

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