SRT signs contract With Telefonica del Peru worth $12 million for SR500-s systems

Business Wire, Feb 12, 1997

MONTREAL--(BUSINESS WIRE)--Feb. 12, 1997--SR TELECOM (ME;TSE:SRX) SR Telecom Inc.(SRT) announced today that a contract has been signed with Telefonica del Peru for a rural telecommunications project employing its SR500-s wireless systems.

This contract requires SRT to deliver systems that will provide telephone service to some 300 rural communities across Peru. Under the terms of the contract the SR500-s will be furnished on a turnkey basis in conjunction with Telecomunicaciones and Representaciones S.A. (Telerep), SRT's local partner in Peru. SRT will be responsible for delivery of the SR500-s systems and solar power equipment, together worth some $12 million. Telerep's portion of the contract, which is worth an additional $10 million, encompasses responsibility for the site surveys, installation and local works. The equipment is scheduled to be delivered by SRT in the second quarter of 1997 and all work on the project, including local works is planned to be completed by the end of 1997.

The areas to be served present difficulties for the provision of telephone service because of the distances and terrain involved. After carrying out detailed studies Telefonica decided that alternatives such as VSAT or fixed cellular radio could not do the job economically and point-to-multipoint TDMA was the preferred solution. Telefonica then chose SR Telecom after an international call for tenders with bidders from Europe and Japan.

Telefonica has now placed orders worth a total of some $30 million for SR Telecom's SR500-s systems over the last 2 years. It is forecast that further expansion of the rural network in Peru may be expected over the next two years.

SR Telecom designs, manufactures and markets TDMA point-to- multipoint microwave products for the provision and upgrade of telephone systems in rural and remote areas. SRT's products are also widely used by industrial users and new carriers for the provision of high reliability voice and data circuits in both remote and urban locations. The company is a world leader in this technology and its systems are now in use in some 80 countries. SRT is headquartered in St.Laurent, Quebec. The company employs approximately 1000 people. SRT is a publicly held company, trading on both the Montreal and Toronto Stock Exchanges, under the symbol SRX.

CONTACT: SR Telecom Inc.

M.J. Morris, 514/335-1210 (Operator)

514/335-2429 ext. 278 (Direct Line)