The Offering will include both a treasury offering by the Company and a secondary offering by certain selling shareholders. The Offering will be led by Canaccord Capital Corporation. The Company has granted the underwriters an over-allotment option to purchase that number of additional common shares equal to up to 15% of the common shares sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering.

The Offering is subject to certain conditions, including regulatory approval. The Offering will be priced in the context of the market with final terms of the Offering to be determined at the time of pricing. The net proceeds from the proposed treasury offering will be used by the Company primarily to continue to fund its efforts to increase sales penetration in regions outside North America, to fund development of the Company's next generation of wireless Ethernet products and related improvements to existing products, to engage in marketing efforts to further raise the Company's profile, to strengthen the Company's balance sheet, to provide an available source of funding for potential future acquisition opportunities and for general corporate purposes.

The Offering is expected to close on or about September 20, 2007. This press release is not an offering of securities for sale in the United States. The common shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of that Act.

DragonWave(TM) is a leading provider of high-capacity wireless Ethernet equipment used in emerging IP networks. DragonWave designs, develops, markets and sells proprietary, carrier-grade microwave radio frequency networking equipment, or links that wirelessly transmit broadband voice, video and other data. DragonWave's wireless Ethernet products, which are based on a native Ethernet platform, function as a wireless extension to an existing fibre-optic core telecommunications network. The principal application for DragonWave's products is to perform the backhaul function in a wireless communications network. Additional applications for DragonWave's products include point-to-point transport in private networks, including municipal and enterprise networks. DragonWave's corporate headquarters are located in Ottawa, Ontario, and have sales locations in Europe and North America.

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