DragonWave Concludes Patent License Agreement with NEC

Market Wire, September, 2007

DragonWave Inc. ("DragonWave") (TSX: DWI)(AIM: DWI) announced today that it has concluded a Patent License Agreement with NEC Corporation that provides DragonWave with access to a wider pool of intellectual property as it extends its High Capacity Wireless Ethernet portfolio. Under the agreement, DragonWave has licensed Canadian and U.S. digital microwave radio ("DMR") patents and counterpart patents in other countries from NEC and both companies have agreed not to assert their respective DMR patents against each other in the future. As part of the Agreement, DragonWave will pay NEC a one time past release fee and an ongoing royalty payment. The financial statements for the year ended February 28, 2007 and the quarter ended May 31, 2007 included provisions for such payments.

"DragonWave has been aggressively pursuing the development of industry leading all IP radio solutions since it's inception in 2000. This agreement expands DragonWave's own portfolio of intellectual property, further enhancing our ability to deliver innovative solutions to our customers," said Peter Allen, President & CEO of DragonWave.

"NEC's unmatched depth of experience and technical capabilities in digital microwave radio systems and techniques are supported by our unsurpassed DMR patent portfolio, which has propelled us to a leading position as a global manufacturer in the DMR systems market," said Hideyuki Ogata, Vice President, Intellectual Asset Management Unit, NEC Corporation. "We have always embraced new and collaborative ways of driving innovation, and aim to contribute to the enhanced growth and development of the global telecommunications market by licensing our DMR technologies to DragonWave and other manufacturers."

About DragonWave

DragonWave Inc. ("DragonWave") (AIM/TSX:DWI) 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 fibre-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 are located in Ottawa, Ontario, Canada with sales locations in Europe and North America.

Contacts: DragonWave Inc. Russell Frederick Chief Financial Officer 613-599-9991 ext. 2253 rfrederick@dragonwaveinc.com DragonWave Inc. Nadine Kittle Media Relations 613-599-9991 ext. 2262 nkittle@dragonwaveinc.com www.dragonwaveinc.com Canaccord Adams Limited Chris Bowman 44 20 7050 6500 Chris.Bowman@CanaccordAdams.com Weber Shandwick Financial John Moriarty 020 7067 0736 Mobile: 07971 402224 jmoriarty@webershandwick.com (FAX)