SR Telecom Adds 3G Technology To Portfolio

SR Telecom Adds 3G Technology To Portfolio

SR Telecom acquisition that positions it to capitalize on identified opportunities for fixed applications in its core customer base. The product does not require additional development prior to its first commercial sale and
SR Telecom intends to commercialize the product through its existing global sales network.

Inset is Pierre St-Arnaud, SR Telecom President and
Chief Executive Officer who is quoted below.

The Company has reached an agreement to acquire certain assets of Mergy Inc., from the assignee of the assets. SR Telecom will pay US $635,000 for the assets of Mergy, including the intellectual property associated with their 3G-
based product line. SR Telecom has also entered into a binding Memorandum of Understanding with Axio Wireless Inc., providing for software licensing and support services.

This acquisition adds standards-based, high-performance 3G broadband
capabilities to SR Telecom's industry-leading portfolio of fixed wireless
access solutions. The acquisition of broadband wireless technology is
consistent with SR Telecom's growth strategy of focusing on strengthening its
market position as the telecommunication industry's preferred supplier for
fixed wireless access solutions.

"The addition of 3G broadband wireless technology to SR Telecom's
industry-leading last-mile wireless access solutions allows us to make high-
speed wireless a reality for homes and businesses everywhere. This
breakthrough product will create significant value for our customers,
shareholders and employees," said Pierre St-Arnaud, SR Telecom President and
Chief Executive Officer.

"Combined with our industry leadership in the provisioning of fixed
wireless access systems, our global sales network, and our proven network
planning, deployment and support capabilities, this acquisition positions us
to offer the industry's most comprehensive portfolio of fixed broadband
wireless solutions," said Mr. St-Arnaud.

"This broadband solution offers service providers a reliable platform for
the seamless delivery of a wide variety of IP-based services and
applications," said Mr. St-Arnaud. "We have identified considerable market
opportunities with our core customer base for this technology, primarily in
fixed applications."

The acquired product's 3G Wireless Internet service capability was
successfully trialed by utilities in the United States and Korea. It is based
on a 3G CDMA standard that delivers a peak data rate of 2.4 Mbps using just
1.25 MHz of spectrum. It provides wireless Internet services with efficient
spectrum usage and increased capacity, enabling the delivery of Internet data
at speeds comparable to current cable and DSL modems.
The transaction, which is expected to close in the next 30 days, is
subject to detailed documentation containing terms and conditions customary in
transactions of this nature.

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SR Telecom acquisition that positions it to capitalize on identified opportunities for fixed applications in its core customer base. The product does not require additional development prior to its first commercial sale and SR Telecom intends to commercialize the product through its existing global sales network.

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