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Inukshuk Suit Targets Vecima

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VICTORIA, British Columbia -- Vecima Networks Inc. ("Vecima" or "the Company")(TSX:VCM), a leading designer and manufacturer in the broadband cable and wireless network infrastructure Market, announced today that it has been named as a defendant in legal proceedings filed in the Supreme Court of Ontario by Inukshuk Wireless Partnership ("Inukshuk"). Inukshuk alleges in the legal proceedings, among other things, that an agreement existed for Vecima to sell to Inukshuk certain radio spectrum and that Vecima did not comply with that agreement. In the legal proceedings, Inukshuk is seeking, among other things, an order requiring Vecima to sell the radio spectrum to Inukshuk, an injunction preventing Vecima from selling the radio spectrum to any other person, and monetary damages.

Vecima believes the legal proceedings are without merit and intends to vigorously contest them. The radio spectrum at issue in the legal proceedings is not core to Vecima's continuing operations.

Vecima Networks Inc.

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