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Wednesday 24 October, 2007

AIM

Sch 1 Update - Redline Comms

AIM
24 October 2007




 ANNOUNCEMENT TO BE MADE BY THE AIM APPLICANT PRIOR TO ADMISSION IN ACCORDANCE WITH RULE 2 OF THE AIM RULES FOR
                                             COMPANIES ('AIM RULES')

COMPANY NAME:

Redline Communications Group Inc. (the 'Issuer' or the 'Company'), which will become the holding company of
Redline Communications, Inc. ('RCI')


COMPANY REGISTERED OFFICE ADDRESS AND IF DIFFERENT, COMPANY TRADING ADDRESS (INCLUDING POSTCODES) :

302 Town Centre Boulevard
Markham
Ontario
Canada
L3R 0E8


COUNTRY OF INCORPORATION:

Canada


COMPANY WEBSITE ADDRESS CONTAINING ALL INFORMATION REQUIRED BY AIM RULE 26:
www.redlinecommunications.com


COMPANY BUSINESS (INCLUDING MAIN COUNTRY OF OPERATION) OR, IN THE CASE OF AN INVESTING COMPANY, DETAILS OF ITS
INVESTING STRATEGY).  IF THE ADMISSION IS SOUGHT AS A RESULT OF A REVERSE TAKE-OVER UNDER RULE 14, THIS SHOULD BE
STATED:

Through Redline Communications, Inc. (Canada), a subsidiary of RCI, the main country of operation of the Issuer
is Canada, the main business of the Company will be the design, manufacture and sale of broadband wireless
products that connect individuals and businesses to the Internet and transport network traffic.  The Issuer's
products are used by broadband service providers, network operator and subscribers as well as enterprises to
establish fast, reliable fixed and mobile wireless communications networks for Internet infrastructure, private
networks and personal broadband applications.


DETAILS OF SECURITIES TO BE ADMITTED INCLUDING ANY RESTRICTIONS AS TO TRANSFER OF THE SECURITIES (i.e. where
known, number and type of shares, nominal value and issue price to which it seeks admission and the number and
type to be held as treasury shares):
13,746,579 common shares of no par value, which includes the placing for cash of 6,155,000 common shares of no
par value at an issue price of CDN$6.50 (£3.27) per share of which 4,625,000 were from treasury and 1,530,000
were secondary.



The shares will be settled in CREST for CREST Depository Interests, and through CDS and physicals settlement for
Common Shares (see the Canadian Prospectus available at www.redlinecommunications.com ).


CAPITAL TO BE RAISED ON ADMISSION (IF APPLICABLE) AND ANTICIPATED MARKET CAPITALISATION ON ADMISSION:
Capital to be raised on admission: CDN$40,007,500 (£21,234,750)

Expected market cap: £45.0 million excluding 7,245,961 shares of Class A redeemable common stock in RCI (£68.6
million including such shares of Class A common stock in RCI)

PERCENTAGE OF AIM SECURITIES NOT IN PUBLIC HANDS AT ADMISSION:
47.6% (including Class A common stock)

DETAILS OF ANY OTHER EXCHANGE OR TRADING PLATFORM TO WHICH THE AIM SECURITIES (OR OTHER SECURITIES OF THE
COMPANY) ARE OR WILL BE ADMITTED OR TRADED:

Toronto Stock Exchange ('TSX')


FULL NAMES AND FUNCTIONS OF DIRECTORS AND PROPOSED DIRECTORS (underlining the first name by which each is known
or including any other name by which each is known):
Current directors :

Philippe de Gaspe Beaubien III (Chairman and Non-Executive)

Majed Sifri (President and Chief Executive Officer)

Mihnea (Mike) Moldoveanu (Chief Technical Officer)

Thomas Hearne (Chief Financial Officer)

Timothy Dibble (Non-Executive)

Mahesh Vaidya (Non-Executive)


FULL NAMES AND HOLDINGS OF SIGNIFICANT SHAREHOLDERS EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE CAPITAL, BEFORE
AND AFTER ADMISSION (underlining the first name by which each is known or including any other name by which each
is known):
Before admission:
                         Philippe de Gaspe Beaubien III       3,735,490         23.0%
                            Matrix Partners VII LP            2,413,950         13.2%
                             U.S Partners VIII, LP            2,413,950         13.2%
                          Francois de Gaspe Beaubien          1,391,367         8.6%
                                  Majed Sifri                  645,504          3.9%





After:
                         Philippe de Gaspe Beaubien III       3,185,494         15.3%
                            Matrix Partners VII LP            1,828,285         8.8%
                             U.S Partners VIII, LP            1,828,285         8.8%
                          Francois de Gaspe Beaubien          1,186,510         5.7%




NAMES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE WITH SCHEDULE 2, PARAGRAPH (H) OF THE AIM RULES:
None


(i)     ANTICIPATED ACCOUNTING REFERENCE DATE

(ii)    DATE TO WHICH THE MAIN FINANCIAL INFORMATION IN THE ADMISSION DOCUMENT HAS BEEN PREPARED

(iii)   DATES BY WHICH IT MUST PUBLISH ITS FIRST THREE REPORTS PURSUANT TO AIM RULES 18 AND 19:
(i)     31 December

(ii)    N/A

(iv)    30 June 2008, 30 September 2008, 30 June 2009


EXPECTED ADMISSION DATE:

25 October 2007


NAME AND ADDRESS OF NOMINATED ADVISER:

Canaccord Adams Limited

Cardinal Place

7th Floor, 80 Victoria Street

London

SW1E 5JL


NAME AND ADDRESS OF BROKER:
Canaccord Adams Limited

Cardinal Place

7th Floor, 80 Victoria Street

London

SW1E 5JL


OTHER THAN IN THE CASE OF A QUOTED APPLICANT, DETAILS OF WHERE (POSTAL OR INTERNET ADDRESS) THE ADMISSION
DOCUMENT WILL BE AVAILABLE FROM, WITH A STATEMENT THAT THIS WILL CONTAIN FULL DETAILS ABOUT THE APPLICANT AND THE
ADMISSION OF ITS SECURITIES:
N/A


DATE OF NOTIFICATION:
24 October 2007


NEW/ UPDATE:
Update


QUOTED APPLICANTS MUST ALSO COMPLETE THE FOLLOWING:

THE NAME OF THE AIM DESIGNATED MARKET UPON WHICH THE APPLICANT'S SECURITIES HAVE BEEN TRADED:
AIM with proposed TSX listing to occur simultaneous with the admission of the Issuer to AIM following the
reorganisation.


THE DATE FROM WHICH THE APPLICANT'S SECURITIES HAVE BEEN SO TRADED:
6 December 2006


CONFIRMATION THAT, FOLLOWING DUE AND CAREFUL ENQUIRY, THE APPLICANT HAS ADHERED TO ANY LEGAL AND REGULATORY
REQUIREMENTS INVOLVED IN HAVING ITS SECURITIES TRADED UPON SUCH A MARKET OR DETAILS OF WHERE THERE HAS BEEN ANY
BREACH:
The Directors of RCI and the Issuer confirm that following due and careful enquiry, RCI has adhered to all legal
and regulatory requirements involved in having its shares traded on AIM and, once listed, the TSX.


AN ADDRESS OR WEB-SITE ADDRESS WHERE ANY DOCUMENTS OR ANNOUNCEMENTS WHICH THE APPLICANT HAS MADE PUBLIC OVER THE
LAST TWO YEARS (IN CONSEQUENCE OF HAVING ITS SECURITIES SO TRADED) ARE AVAILABLE:
www.redlinecommunications.com


DETAILS OF THE APPLICANT'S STRATEGY FOLLOWING ADMISSION INCLUDING, IN THE CASE OF AN INVESTING COMPANY, DETAILS
OF ITS INVESTING STRATEGY:
The Company's strategy is as follows:



•         continued research and development investment to maintain technological lead including expanding its
current offering in mobile WiMax, additional radio frequencies and selected target markets;

•         continue first mover advantage with each WiMAX and Broadband Wireless Standard;

•         build on existing channel and strategic relationships around the globe; and

•         execute a focused and phased market strategy with an initial focus on emerging markets

Further details on the Company's strategy can be found in the Canadian prospectus available at
www.redlinecommunications.com.


A DESCRIPTION OF ANY SIGNIFICANT CHANGE IN FINANCIAL OR TRADING POSITION OF THE APPLICANT, WHICH HAS OCCURRED
SINCE THE END OF THE LAST FINANCIAL PERIOD FOR WHICH AUDITED STATEMENTS HAVE BEEN PUBLISHED:
There have been no significant changes in the financial or trading position of the Company or of RCI which has
occurred since the end of the last financial period for which audited statements have been published and which
have not been disclosed to the public.


A STATEMENT THAT THE DIRECTORS OF THE APPLICANT HAVE NO REASON TO BELIEVE THAT THE WORKING CAPITAL AVAILABLE TO
IT OR ITS GROUP WILL BE INSUFFICIENT FOR AT LEAST TWELVE MONTHS FROM THE DATE OF ITS ADMISSION:
The directors of the Company have no reason to believe that, on admission, the working capital available to it or
its group will be insufficient for at least 12 months from the date of its admission.


DETAILS OF ANY LOCK-IN ARRANGEMENTS PURSUANT TO RULE 7 OF THE AIM RULES:
The directors of the Company and certain shareholders have agreed to be locked in, in relation to their holdings
in the Company on the same terms and from the balance of the periods they agreed to be locked in, in relation to
their interests in RCI upon RCI's admission to trading on AIM.  For further details see the Canadian prospectus
available at www.redlinecommunications.com


A BRIEF DESCRIPTION OF THE ARRANGEMENTS FOR SETTLING THE APPLICANT'S SECURITIES:
CREST for CREST Depository Interests, and through CDS and physicals settlement for Common Shares (see the
Canadian Prospectus available at www.redlinecommunications.com )


A WEBSITE ADDRESS DETAILING THE RIGHTS ATTACHING TO THE APPLICANT'S SECURITIES:
www.redlinecommunications.com


INFORMATION EQUIVALENT TO THAT REQUIRED FOR AN ADMISSION DOCUMENT WHICH IS NOT CURRENTLY PUBLIC:
See the Appendix set out at www.redlinecommunications.com


A WEBSITE ADDRESS OF A PAGE CONTAINING THE APPLICANT'S LATEST ANNUAL REPORT AND ACCOUNTS WHICH MUST HAVE A
FINANCIAL YEAR END NOT MORE THEN NINE MONTHS PRIOR TO ADMISSION AND INTERIM RESULTS WHERE APPLICABLE.  THE
ACCOUNTS MUST BE PREPARED IN ACCORDANCE WITH ACCOUNTING STANDARDS PERMISSIBLE UNDER AIM RULE 19:
www.redlinecommunications.com


THE NUMBER OF EACH CLASS OF SECURITIES HELD IN TREASURY:
None






                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                             

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