Enablence to Buy Pannaway

OTTAWA -- Enablence Technologies Inc. ("Enablence") a publicly traded company headquartered in Ottawa, Ontario, Canada and leading supplier of fiber-to-the-premises (FTTP) equipment for triple-play residential and business services, today announced it has signed a definitive agreement ("Agreement") to acquire Pannaway Technologies Incorporated ("Pannaway") and to merge it with Enablence's FTTx Networks Division, subject to certain approvals including TSX Venture Exchange approval, consents and conditions. Under the terms of the Agreement, Enablence will issue:

"With this merger, Enablence's FTTx Division will have one of the broadest set of access solutions in the industry, an expanded customer base of 420 customers and a capability to provide our customers with an evolutionary path from Ethernet/IP to FTTx using state of the art technologies" says Arvind Chhatbar, CEO of Enablence. Mr. Chhatbar further commented, "We anticipate that the merger will permit the entire FTTx Division to achieve positive cash flow in fiscal year 2010 contributing to our drive towards profitability by expanding our market reach to include existing DSL based services providers seeking to evolve their networks to optical access. The two companies have been working together over the last six months to provide solutions to customers which was a true catalyst for this deal. This will enable the combined FTTx Division to support all current customers and position it with more in-depth product lines for future growth. With the combined focus on access network solutions we will become a logical choice for customers when service providers are choosing their partners for access technology."

Enablence Technologies Inc. (Toronto: ENA)