Commencement of Trading

25 Oct 2007 14:30

Redline Communications Group Inc.25 October 2007 Immediate Release 25 October 2007 NOT FOR DISTRIBUTION IN THE UNITED STATES Redline Communications Group Inc. ("Redline" or the "Company") Redline Communications Group Inc Commences Trading on the TSX Company to increase WiMAX technology development and deployments MARKHAM, ON and LONDON, UK - 25 October 2007 - Redline Communications Group Inc.(TSX/AIM: RDL - previously REDL), a leading provider of standards-based WiMAXand broadband wireless infrastructure products, announced today the completionof its placing of CDN$40.0 million (£20.1 million) comprising of 6,155,000common shares of no par value at a price of $6.50 (£3.27) per share of which4,625,000 were from treasury and 1,530,000 were secondary. Effective from thisdate, the Company's shares will commence trading on the TSX and AIM under thesymbol 'RDL'. "Redline is focused on delivering broadband wireless products that enablecarriers to deliver advanced voice, video and data communications," said MajedSifri, President and Chief Executive Officer, Redline Communications Group Inc."Redline is among the leaders in WiMAX, with more than 125 deployments of ourWiMAX Forum Certified(TM) products and our emphasis on delivering true WiMAXperformance and interoperability. With the listing of RCG on the TSX and AIM, webelieve we are well positioned to increase our WiMAX technology development anddeployments worldwide." As a result of Redline's corporate reorganization, which was disclosed onSeptember 26, 2007, Redline Communications Group Inc. ('RCG') became the holdingcompany of the previously AIM admitted Redline Communications Inc. ("RCI"). Thereorganization was completed immediately prior to the listing of RCG on theToronto Stock Exchange ("TSX") and admission to trading on the AIM market of theLondon Stock Exchange plc ("AIM") today. As a result of the reorganisation, RCI is now a wholly owned subsidiary of theRedline Communications Group. Holders of the common stock of RCI who did notelect otherwise received shares of class B common stock at a ratio of one RCIshare for 0.25 shares in the surviving entity that were automatically redeemedby RCI for an equal number of common shares of the Company. In addition andcontemporaneously, holders of the common stock of RCI who so elected received ata ratio of one RCI share for 0.25 common shares of the RCI, a class of stockwhich are redeemable at the option of the holder at any time after the TSXlisting and AIM admission for an equal number of common shares of the Company. The Redline Communications Group Inc. shares have been assigned new ISIN andCUSIP numbers, which are listed below: RDL (previously REDL): ISIN CA7576371032 CUSIP: 757637103 The reorganisation was accomplished by a merger of a wholly-owned acquisitionvehicle with and into the Company pursuant to the Delaware General CorporationLaw. For further details:Redline Communications Buchanan CommunicationsTom Hearne, Chief Financial Officer Jeremy Garcia / James Strong / Bobby MorseCarolyn Anderson, Communications jeremyg@buchanan.uk.comDirectorcanderson@redlinecommunications.com Tel: +44 (0)20 7466 5000Tel: + 1 905 479 8344 Canaccord Adams Chris Bowman Tel: +44 (0)20 7050 6500 This press release does not constitute an offer to sell or a solicitation of anoffer to sell common shares of Redline in the United States. These securitieshave not been and will not be registered under the United States Securities Actof 1933, as amended (the ''U.S. Securities Act'') or any state securities lawsand may not be offered or sold in the United States except in compliance withthe registration requirements of the U.S. Securities Act and applicable statesecurities laws or pursuant to an exemption therefrom. About Redline Communications, Inc.Redline is the 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 wirelessinfrastructure products enable service providers and other network operators tocost-effectively deliver high-bandwidth services including voice, video and datacommunications. Redline is committed to maintaining its wireless industryleadership with the continued development of WiMAX and other advanced wirelessbroadband products. With more than 50,000 installations in 80 countries, and aglobal network of over 100 partners, Redline's experience and expertise helpsservice providers, enterprises and government organizations roll out theservices and applications that drive their business forward. For moreinformation, visit www.redlinecommunications.com. Forward-Looking StatementsAny forward-looking statements in this press release are based on currentexpectations that are subject to significant risks and uncertainties that aredifficult to predict. Actual results may differ materially from projectionssuggested in any forward-looking statements due to a number of risks includingthose associated with the business of Redline, the proposed offering andregulatory matters. Redline assumes no obligation to update the forward-lookingstatements, or to update the reasons why actual results could differ from thosereflected in the forward-looking statements. Readers are cautioned not to placeundue reliance on forward-looking statements. Additional information identifyingrisks and uncertainties are contained in RCG's preliminary prospectus filed withthe Canadian securities regulatory authorities, available at www.sedar.com. NOTE: All registered and unregistered trademarks mentioned in this release arethe property of their respective owners. This information is provided by RNS The company news service from the London Stock Exchange