FOR:  DRAGONWAVE INC.

AIM, TSX SYMBOL:  DWI

March 17, 2008

Dragonwave's New Service Delivery Unit Enables Cost-Effective Convergence of Mixed Traffic Onto
Carrier Ethernet Networks

New DragonWave pseudowire solution enables migration to packet-based networks and future-proofs for
changes in traffic mix

OTTAWA, CANADA--(Marketwire - March 17, 2008) - DragonWave Inc. (AIM:DWI)(TSX:DWI), a leading global
supplier of next-generation wireless networks, today announced its Service Delivery Unit (SDU) product
portfolio, enabling carriers to efficiently converge Time Division Multiplexing (TDM) and Internet
Protocol (IP) services on a cost-effective, flexible Ethernet network foundation. In the migration to
carrier Ethernet, DragonWave's new pseudowire solution fosters a simplified, future-proofed, packet-
based network that is significantly more affordable to build, power, support and maintain.

DragonWave will show its new SDU portfolio in Booth 5852 at CTIA Wireless(R) in the Las Vegas
Convention Center, April 1-3.

"The SDU offers service providers a compelling path to full-blown carrier Ethernet," said Todd Graetz,
CEO for Montana-based Cutthroat Communications, a transAria company. "The ability to convert to
packets at the edge of the network and then pass though intermediate sites as a single, converged, IP-
based stream reduces network costs and significantly simplifies operations. With the SDU, DragonWave
is future-proofing our network for changes in traffic mix moving forward."

The new SDU pseudowire solution is another DragonWave tool for enabling carriers to converge TDM and
IP traffic across a single, wireless Ethernet infrastructure. With the SDU providing both pseudowire
and Ethernet switching functionality, a carrier reduces investment by deploying a single box for these
two functions in its network.

"The benefits of carrier Ethernet are well understood, but carriers need the flexibility to make
incremental steps in convergence," said Emmy Johnson, Principal Analyst with Skylight Research. "They
seek to continue to benefit from legacy investment, even while evolving for support of new Ethernet
services-all while holding capital and operational expenditures in check."

There are three versions of the SDU: a 16-port T1/E1 version, a two-port DS3 version and a one-port
OC3/STM1 version. In addition to supporting point-to-point TDM transport, the SDU can provide virtual
aggregation, further cutting carrier costs by reducing the requirement for TDM cross-connects in the
network; a carrier could deploy the T1/E1 version of the SDU at multiple remote locations and
aggregate the traffic with the DS3/OC3 version for delivery into the network core. The DragonWave
solution supports up to six Gigabit Ethernet ports, in addition to the TDM ports. The SDU provides key
carrier-grade features, such as traffic prioritization, Virtual Local Area Network (VLAN) tagging,
Ethernet demarcation and full redundancy. Up to three SDUs can be deployed in a single standard
carrier equipment rack unit.

"Carriers need tools for keeping their cost of churn low, and we engineered the SDU with that goal in
mind," said Alan Solheim, Vice President of Product Management at DragonWave. "The SDU enables
carriers to gradually and cost-effectively migrate more of their network from TDM circuits to packet-
based traffic and realize the benefits of true network convergence. With network operations and
management so simplified, this enables carriers to more aggressively address new markets."

About DragonWave

DragonWave(TM) is a leading provider of high-capacity wireless Ethernet equipment used in emerging IP
networks. DragonWave designs, develops, and markets carrier-grade microwave radio frequency networking
equipment that wirelessly transmit broadband voice, video and other data. DragonWave's wireless
Ethernet products, which are based on a native Ethernet platform, function as a wireless extension to
an existing fiber-optic core telecommunications network. The principal application for DragonWave's
products is the backhaul function in a wireless communications network. Additional applications for
DragonWave's products include point-to-point transport in private networks, including municipal and
enterprise networks. DragonWave's corporate headquarters is located in Ottawa, Ontario, with sales
locations in Europe, Middle East and North America. The company's Web site is
http://www.dragonwaveinc.com


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FOR FURTHER INFORMATION PLEASE CONTACT:

DragonWave Inc.
Nadine Kittle
Marketing Communications
613-599-9991 ext 2262
nkittle@dragonwaveinc.com

OR

Canaccord Adams Limited
Chris Bowman / Andrew Chubb
44 20 7050 6500

OR

Interprose Public Relations
Cathy Palmen
(for DragonWave)
408-268-8112
cathy.palmen@interprosepr.com

OR

Weber Shandwick Financial
John Moriarty
(for DragonWave)
020 7067 0736
Mob: 07971 402224
jmoriarty@webershandwick.com

                                                                
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