FOR IMMEDIATE RELEASE

DRAGONWAVE INC. SECURES $14 MILLION SECOND ROUND FINANCING

Ottawa, Canada: September 20, 2001, DragonWave Inc., the premier supplier of high-performance, next-generation, intelligent millimetre wave radios, today announced that the company has finalized a $14 Million (CDN) second round of financing. This round of funding included participation from leading venture capital firms: Celtic House International, IG Investment Management LTD., Venture Coaches (Kanata), VentureLink Capital Corp. (Toronto) as well as EDB Ventures Pte Ltd. (Singapore). This round of financing brings the total capital raised to date to $ 26 million (CDN).

“This latest round of financing provides DragonWave with the necessary funds to grow the company from its current stage through revenue generation and volume production” said Jim Arseneault, President and CEO of DragonWave.

"I believe that this is the time to be investing in new companies. DragonWave is positioned to ride the wave of growth in the Broadband Wireless Market worldwide." said Terry Matthews, Chairman of DragonWave and chairman and CEO of March Networks. "Broadband wireless is a very complicated technology area and it employs products which historically have proven to be extremely difficult to make in high volumes. DragonWave has designed unique technology to address this market with products that can be manufactured more rapidly and at cost points that are unmatched in this industry. Their products and team are world class."

"DragonWave has a seasoned management team with extensive telecommunications experience and a track record of success. This team, combined with the Company's unique approach to the Fixed Broadband Wireless Market are the reasons Investors Global Science & Technology Fund was pleased to participate in this round of financing." Said Daniel McClure, Portfolio Manager of Investors Global Science & Technology Fund, and Partner, I.G. Investment Management, Ltd.

“We believe that DragonWave, with its innovative radio communication products, can capitalize on the tremendous potential for connectivity and wireless broadband in Asia.” said Liow Voon Kheong, General Manager, EDB Ventures. “With our investment, the company can leverage Singapore as a springboard for DragonWave to expand into Asia.”

About DragonWave Inc.

DragonWave Inc. is a premier supplier of high-performance, next-generation, intelligent millimetre wave radios. Our world-class staff of industry experts’ tackles radio development for the fixed broadband wireless access market. DragonWave’s product family will provide managed high-speed radio building blocks enabling gigabits per second through the air. DragonWave is headquartered in Ottawa, Canada’s high technology capital. The company’s web site is located at www.dragonwaveinc.com.

About Celtic House International

Established in 1994, Celtic House International is a leading venture capital firm with offices in Canada, the U.K., and the U.S. Funded by Terry Matthews, founder of Mitel and Newbridge Networks, Celtic House invests in early stage high technology companies that specialize in telecommunications, storage, networking and Internet infrastructure. Celtic House was recently named “Seed Investor of the Year” at the European Technology Forum, in recognition of its track record in backing technology companies that have succeeded. For more information visit www.celtic-house.com

About EDB Ventures

EDB Ventures Pte Ltd is a wholly owned subsidiary of EDB Investments Pte Ltd (EDBI). EDBI is the investment arm of the Singapore Economic Development Board (EDB). Set up in 1990, EDBI makes strategic investments worldwide focusing on new business-model and/or technology intensive projects that deliver world-class hardware, software and related services. EDBI manages in excess of US$3 billion and has made investments in over 260 projects including strategic joint ventures in Singapore with Agilent Technologies, Lam Research Corporation, Infineon Technologies, Philips Semiconductor, Hitachi, TSMC and UMC. EDBI leverages on EDB’s extensive network of 15 offices in Asia, Europe and the United States. www.edbi.com

About IG Investment Management Ltd., a subsidiary of Investors Group Inc.

Investors Global Science & Technology Fund, invests in both public and private leading technology and biotechnology companies around the world and across industry sub-sector segments such as semiconductors, enterprise hardware and software, IT services, telecommunications equipment, and biotechnology and pharmaceutical companies. The Fund is one of a diversified family of funds managed by Investors Group Inc., which is a national leader in delivering personalized financial solutions to more than one million Canadians. As of June 30, 2001, Investors Group assets totalled more than $80 billion. www.investorsgroup.com

About Venture Coaches

Venture Coaches is an Ottawa-based seed and early stage investor committed to building innovative photonic and wireless product companies. Venture Coaches combines and early stage investment fund with a strong mentoring approach. The company’s partners and advisors leverage extensive investment, technology and management experience as well as a strong industry network to focus the entrepreneur’s vision. Portfolio companies include edgeflow, Spotwave Wireless, DragonWave, SpaceTime Wireless and Camelot Content. For more information visit www.venturecoaches.com

About VentureLink Fund

VentureLink Fund is a wholly owned subsidiary of Skylon Capital Corp., a financial services firm established in 2000 by leading veterans of Canada’s investment industry. VentureLink Fund is a labour sponsored investment fund designed to finance early stage to mid-sized Canadian technology companies with a proven management team and solid growth potential. The VentureLink Group of Funds will continue to provide growing Canadian companies with the investment capital required to succeed.

Contacts:

Ron Blair, CFO Nadine Kittle, Marketing

DragonWave Inc. DragonWave Inc.

613-599-9991 Ext. 253 613-599-9991 Ext 262

ron.blair@dragonwaveinc.com nkittle@dragonwaveinc.com