Revenue for the quarter was $10.7 million, compared with $8.6 million for the same period of the last fiscal year, an increase of 24%.

Revenue from customers in North America grew to $8.0 million, a 34% increase from the $6.0 million reported in Q1 of fiscal year 2008. Revenue from outside North America represented 25% of total revenue for the quarter.

Gross margin for the first quarter was 41%, up 6% from 35% gross margin reported in the first quarter of fiscal 2008 as a result of continued cost reduction programs. This margin was consistent with the 41% gross margin reported in the previous quarter.

For the first quarter fiscal year 2009, the loss from operations was $2.5 million, compared to a loss of $1.9 million in the first quarter of fiscal year 2008. Expenses increased from $4.9 million to $6.8 million due to increased staffing levels, sales and marketing activities required to support the growing international business, market driven R&D associated with major near term opportunities and the engineering activity required to comply with local certification and approval processes. The net loss for the quarter was $1.9 million versus $2.7 million in Q1 fiscal 2008.

"DragonWave made good progress during the quarter. In addition to the growth and customer traction, we introduced our Horizon Duo product with industry leading capacity, our Service Delivery Unit which enables the convergence of mixed traffic on to carrier Ethernet networks, and expanded our frequency coverage to include the 6 - 8 GHz frequency range. Our overall portfolio is strongly placed for the growing high capacity wireless backhaul market. Our recent announcement of our selection by Sprint validates our leadership position in North America" said Peter Allen, President and CEO of DragonWave.

The DragonWave management team will discuss the results on a conference call July 11, 2008 at 8:30 a.m. Eastern time (1:30 GMT).

Presentation material and a webcast link will be made available from the Investor Relations portal of DragonWave's web site at http://www.dragonwaveinc.com/irevents.asp

Conference Call Details:

• Beginning at 8:30 a.m., EDT
• Toronto Dial In Number: 416-883-7132
• Toll Free Dial In Number: 1-888-205-4499
• UK Dial In Number: 00-800-8358-7000
• Participant Pass Code: 57891#

DragonWave is a leading provider of high-capacity wireless Ethernet equipment used in emerging IP networks. DragonWave designs, develops, and markets carrier-grade microwave radio frequency networking equipment 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 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 is located in Ottawa, Ontario, with sales locations in Europe, Middle East and North America.