MONTREAL, QUEBEC -- 04/04/08 --
SR Telecom Inc. (TSX: SRX) today announced that it has closed the sale of the majority of its assets to Sherbrooke (Quebec) based Groupe Lagasse. The transaction, which received court approval on March 31, 2008, will provide continuity for SR Telecom's international customer base and protect high technology jobs in Montreal.
As announced on March 24, 2008, Groupe Lagasse is purchasing the majority of SR Telecom's assets, including its brand, trademarks, intellectual property, patents, inventories and equipment relating to its symmetryONE and WiMAX Forum-certified symmetryMX product lines for an aggregate consideration of $6,050,000, plus the assumption of certain stated liabilities. SR Telecom shareholders will not receive any value out of the proceeds of the sale.
Since November 19, 2007, SR Telecom has been operating under the protection of the Companies' Creditors Arrangement Act (CCAA). On February 29, 2008, it obtained a court order to extend the period of the Court-ordered stay of proceedings under the CCAA to May 2, 2008.
The new business will be operating under the name SR Telecom & Co. S.E.C., a Groupe Lagasse wholly owned subsidiary.
About Groupe Lagasse
Groupe Lagasse is an international company with manufacturing and products business units that focus on providing leading edge, rugged, high reliability, and high availability solutions for the private and public sectors. Its activities include electronic manufacturing expertise for secure radio and telecom products that address the entire product life cycle. The Group also develops advanced carrier grade VoIP access devices, gateways, secure SIP-based software solutions and secure, ruggedized, active RFID solutions. These are complemented by outsourced contact center solutions and automated interactive voice services that can deliver a single message to as many as 10,000 recipients per hour, via phone, mobile phone, SMS and e-mail. Groupe Lagasse is a privately held holding whose sales, in 2007, exceeded $200 M Cnd; the group has operations in Europe and North America and employs over 1,000 people worldwide. For more information about Groupe Lagasse, visit www.groupelagasse.com.
About SR Telecom
SR Telecom (TSX: SRX) is a leader in delivering innovative broadband wireless access (BWA) solutions that enable service providers to efficiently deploy quality voice, Internet and next-generation services in urban, suburban and remote areas.
FORWARD-LOOKING STATEMENTS
Certain information in this news release, in various filings with Canadian and US regulators, in reports to shareholders and in other communications, is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among others, information with respect to the Company's objectives and the strategies to achieve those objectives, as well as information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of April 4, 2008.
The results or events predicted in such forward-looking information may differ materially from actual results or events. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The forward-looking information contained in this news release represents expectations of SR Telecom as of April 4, 2008 and, accordingly, is subject to change. However, SR Telecom expressly disclaims any intention or obligation to revise any forward-looking information, whether as a result of new information, events or otherwise, except as required by applicable law.
SR TELECOM, symmetry, symmetryONE and symmetryMX are trademarks of SR Telecom & Co, S.E.C. All rights reserved 2008. All other trademarks are property of their owners.
Contacts:
Marc Girard, Senior vice-president and CFO
514-335-2429, Ext. 4690
Christopher Fedorko, Groupe Lagasse
613-798-6920
