Mr. John Lawlor reports

DRAGONWAVE INC. PRICES C$25 MILLION PUBLIC OFFERING OF UNITS

DragonWave Inc. has priced an underwritten public offering of 13.85 million units at a price to the public of $1.80 per unit, for gross proceeds of approximately $25-million. CIBC is acting as the sole bookrunner for the offering, and H.C. Wainwright & Co. LLC is acting as lead manager. The company has also granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15 per cent of the issue to cover overallotments, if any.

The company intends to use the net proceeds from the offering to strengthen its balance sheet, to finance working capital and for general corporate purposes.

Under the terms of the offering, each unit consists of one common share and one-half of one warrant. Each whole warrant entitles the holder thereof to purchase one common share of the company at an exercise price of $2.25 for a period of two years from the closing date of the offering, subject to acceleration and adjustment. The offered shares and warrants are immediately separable. The company intends to apply to list the warrants on the Nasdaq Stock Market and the Toronto Stock Exchange. There is no guarantee that the warrants will be listed on Nasdaq or the TSX. The company expects that any exercise of the warrants will result in the cash proceeds from the exercise of such warrants being paid to the company.

The offering is expected to close on or about Aug. 1, 2014, subject to customary closing conditions, including the approval of the TSX and Nasdaq with respect to the offered shares and the shares issuable upon exercise of the warrants.

The offering is being conducted in the United States pursuant to the company's effective shelf registration statement filed with the Securities and Exchange Commission on Aug. 29, 2013, and in Canada pursuant to a final short-form base-shelf prospectus dated Aug. 29, 2013, filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec, in each case as supplemented by a preliminary prospectus supplement. In addition, to the extent necessary to cover shares issuable upon exercise of the warrants, the company intends to use, once effective in the United States and Canada, the company's new shelf registration statement filed with the SEC on July 24, 2014, and the securities regulatory authorities in each of the provinces of Canada, other than Quebec, in each case as supplemented by a prospectus supplement. A final prospectus supplement will also be filed with the SEC and the securities commissions in each of the provinces of Canada, other than Quebec. The final prospectus supplement may be obtained by visiting the SEC's website, or from CIBC or H.C. Wainwright & Co. LLC by sending an e-mail.

We seek Safe Harbor.