Telefonica Orders SR Telecom GearTelefonica Orders SR Telecom Gear

MONTREAL -- SR Telecom™ Inc. (TSX: SRX; Nasdaq: SRXA) announced that it has received purchaseorders valued at approximately CDN$11 million from Siemens for the ongoing Telefónica TRAC initiative. Telefónica, aleading international telecommunications operator, originally selected SR Telecom’s angel™ over a number of competingtechnologies for an extensive multi-service Broadband Fixed Wireless Access (BFWA) network. The new orders are forthe WiMAX-ready symmetry™ solution, which Telefónica intends to use for the rest of the TRAC deployment. The TRACinitiative will deliver high quality voice and high-speed data to suburban and rural areas throughout the country; ultimately,approximately 100,000 lines will be deployed.

“These large orders are very significant, as they signal the acceleration of the TRAC deployment,” said Pierre St-Arnaud,SR Telecom’s President and Chief Executive Officer. “Additionally, we are very pleased that Telefónica has determinedthat SR Telecom’s symmetry platform can best meet its broadband access requirements. symmetry is a scalable,field-proven solution that can be immediately deployed, and also provides Telefónica with a seamless migration path toWiMAX-certified sectors once they become available. We look forward to the further deployment of this important accessproject in the months to come.”

SR Telecom Inc.