Vecima to Supply Major US-Based MSO with Key Product to Support Transition to All-Digital Network

    VICTORIA, Oct. 6 /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. The product is designed to reclaim analog bandwidth all the way to
the outer edge of the cable network including multi-dwelling units or
household service groups. The engineering portion of the contract is valued at
two to three million dollars alone and should lead to substantial additional
supply and maintenance revenue. The new product facilitates the Cable MSOs
transition to all-digital operation across its entire network, maximizing the
value of existing infrastructure, while allowing them to continue to provide
both high quality digital services and basic analog cable TV services to
    "According industry studies, the global market for bandwidth reclamation
products is expected to reach $1.5 billion in the next five years as the
industry-wide transition to all digital networks, focused on delivering higher
video quality and a broader range of HDTV services, is completed," said Vecima
Chief Executive and Chairman, Dr. Surinder Kumar. "This contract is part of
our broader growth strategy, as we continue to exploit opportunities to
productize innovative technology that meets the needs of our customers and we
believe we are well positioned to capture a meaningful piece of this market."
    Cable MSOs and the original equipment manufacturers that supply them,
including Vecima, are under increasing pressure to meet growing demand for
bandwidth across legacy hybrid fiber-coaxial networks. The key driver is
virtually insatiable consumer demand for bandwidth, digital video streaming,
social networking and file sharing applications, and increased personalized
television offerings. As a result there is an opportunity for advanced
infrastructure products for digital cable and data-over-cable services that
re-use reclaimed bandwidth for HDTV delivery, countering competition to the
100+ HD channel universe offered by satellite and fiber-to-the-home operators.
Cable MSOs want to reclaim as much analog spectrum as possible while remaining
transparent to the subscriber. Analog signals consume a disproportionate
amount of signal space, as compared to all-digital transmission. An
all-digital network allows the Cable MSO to operate fully digitally up to the
"last tenths of a mile" providing improved efficiency and maximizing the
footprint and value of existing infrastructure.
    Vecima's new products allow Cable MSOs to reclaim analog spectrum all the
way to a multi-dwelling unit or a network service group of households, at the
very outer edge of the network. This increases available bandwidth for the
100+ HDTV channel race and provides additional revenue generating
opportunities for Cable MSOs.

    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 Information Form dated
September 25, 2007 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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