Sandvine on Acquisition Spree

WATERLOO, Ontario -- Sandvine Corporation (TSX:SVC)(AIM:SAND), a leading provider of intelligent broadband network solutions for DSL, FTTH, cable, and wireless carriers, announces that it has completed an acquisition of CableMatrix Technologies, Inc. and has also entered into a definitive agreement to acquire Simplicita Software, Inc.

CableMatrix's products complement Sandvine's solutions for the creation of new network services, such as VOIP, IPTV, Video on Demand and Bandwidth on Demand, that are driving the next wave of broadband market growth. Through universal equipment signaling, CableMatrix's products extend Sandvine's policy enforcement capabilities network-wide, from the edge to the core, for all next generation access networks-DSL, FTTH, Broadband Wireless and Cable-and are consistent with all emerging network standards, including IMS, TISPAN, and PCMM.

Simplicita's solutions enable broadband service providers to create network policies based on the "reputation" of network users, as determined from a variety of sources including Sandvine's platforms, service provider data and third party sources. Initial applications of Simplicita's innovative technology protect service providers' Domain Name Server infrastructures while enabling the creation of new advertising-based services. Sandvine's agreement with Simplicita is subject to typical closing conditions and is expected to close by the end of this month.

"These acquisitions benefit Sandvine in three ways. First, they immediately expand the Sandvine Service Creation product portfolio. Second, they enhance our Network Integrity suite. And finally, they bring elements to our core technology that will enhance the breadth of new applications we can offer in the future," said Dave Caputo, Sandvine's president and chief executive officer.

The combined purchase price across the two acquisitions includes US$4.5 million in cash, 0.9 million Sandvine common shares, plus a further 0.6 million shares if certain sales targets and business metrics are met in 2008 or earlier. In accordance with AIM requirements, Sandvine will apply in due course for the common shares issued in connection with the acquisitions to be admitted to AIM.

As a result of the acquisitions, the company will immediately add approximately 40 employees. While Sandvine sees some near-term opportunities for the new products, the company does not expect meaningful revenue from the acquisitions until some time in 2008. The company does not expect its operating model to change from that disclosed in Management's Discussion and Analysis for the first quarter of 2007.

Sandvine Inc.