Vecima signs multi-year agreement to supply new TerraceQAM Product to major Cable MSO

           - Product Supports Transition to All-Digital Networks,
                     Enables New HDTV Market Services -

    VICTORIA, Feb. 5 /CNW/ - Vecima Networks Inc. ("Vecima" or "the Company")
(TSX:VCM), a leading provider of equipment supporting broadband access to
cable, wireless and telephony networks, today announced it has signed a
multi-year engineering, supply and maintenance contract with a leading,
US-based cable multiple system operator (Cable MSO) for a new cable network
product in its growing Terrace product family for all-digital cable systems.
The new TerraceQAM product is designed to provide cable system operators with
market leading technology delivering both High Definition (HD) and Standard
Definition (SD) digital video streams in a secure format connecting directly
to newer flat panel TVs, eliminating the need for an additional Digital Set
Top Box. The result is a cleaner and more reliable installation offering a
broader range of video services and a simplified user experience. This new
technology is highly desired by the hospitality industry, hospitals, schools,
universities and other institutions because it streamlines infrastructure
requirements and reduces costs. The market is expected to grow to a cumulative
$600M worldwide over the next ten years and creates opportunities for
operators to deploy all-digital services to new market segments.
    "Signing this agreement for the TerraceQAM product provides further
evidence of the lead role Vecima is playing as networks transition to
all-digital service," said Vecima Chief Executive and Chairman, Dr. Surinder
Kumar. "TerraceQAM allows operators to use their networks to take full
advantage of the capabilities of next-generation HDTVs providing an improved
end-user experience. As we continue to execute on our strategy to exploit
opportunities supporting Cable MSO's transition to all-digital networks and
the provision of new and enhanced HDTV services, we would expect to obtain a
sizeable portion of this market over the mid-term."
    TerraceQAM is a modular system allowing simultaneous decoding of 32 QAM
modulated channels to either MPEG-2/SD or MPEG-2/HD video channels. The
product allows bulk decryption and re-encryption of video streams and
re-modulation to QAM format. The remodulated signals are distributed to
subscribers via one of four output ports. The channel line-up is configurable
for delivery to devices with QAM demodulating tuners. The TerraceQAM allows
for insertion of local feeds by encoding baseband audio and video signals as
either MPEG-2/SD or MPEG-2/HD video streams.

    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.

    Forward-Looking Statements

    Certain statements in this news release may constitute forward-looking
statements which involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. When used in this news release, such statements
are generally identified by the use of such words as "may", "will", "expect",
"believe", "plan", "intend" and other similar terminology. These statements
reflect Vecima's current expectations regarding future events and operating
performance and speak only as of the date of this news release.
Forward-looking statements involve significant risks and uncertainties, should
not be read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results will be
achieved. A number of factors including, but not limited to, the factors
discussed under "Risk Factors" in the Company's Annual Report dated September
25, 2008 available on SEDAR (, could cause actual results to
differ materially from the results discussed in the forward-looking
statements. Although the forward-looking statements contained in this news
release are based upon what management of the Company believes are reasonable
assumptions, the Company cannot assure investors that actual results will be
consistent with these forward-looking statements. These forward-looking
statements are made as of the date of this news release, and the Company
assumes no obligation to update or revise them to reflect new events or

For further information:

For further information: Vecima Networks, Alan Brick, Investor Relations
Officer, (250) 881-1982,

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