updated 11/12/2010 4:01:16 PM ET 2010-11-12T21:01:16

Vecima Networks Inc. ("Vecima" or "the Company") (TSX: VCM), today reported its fiscal 2011 first quarter financial results for the three months ended September 30, 2010. (All dollar amounts are in Canadian funds unless otherwise stated.)

"During the first quarter of fiscal 2011, we were successful in producing healthy profitability through diligent management and containment of expenses. Sales for the first quarter were essentially unchanged sequentially at $26.3 million compared to $26.8 million in Q4 of fiscal 2010. Meanwhile, gross margin increased to 38% from 29% in Q4 as a result of a return to typical product mix as well as realization of efficiencies in production and cost management practices," said Dr. Surinder Kumar, Chairman and CEO.

"Vecima products are core elements of system operator strategies; our products provide a method to convert to all-digital and then to use that freed-up capacity to deliver HDTV and high-speed data bandwidth. Consumption of bandwidth by consumers through activities such as watching TV on the internet, viewing streaming movies on Netflix, and downloading files are the underlying driver of demand for Vecima products. Similarly, consumption of programming that is distributed by cable operators such as HDTV and movies/TV on demand drive consumption of Vecima products," Dr. Kumar continued.

Fiscal 2011 Q1 financial highlights:

As previously stated, our growth strategy is focused on the introduction of new products as well as accessing new markets and new customers for our products. We remain on a path towards single-digit revenue growth for fiscal 2011, driven by new product introductions which are expected to ramp in the second half of the fiscal year. Meanwhile, with careful cost controls, we have successfully delivered gross margin within our model, as well as a return to profitability.

The Company's full consolidated financial statements and management's discussion and analysis for the three months ended September 30, 2010 are available under the Company's profile at www.SEDAR.com, and at http://www.vecima.com/financials_ir.php.

A conference call and live audio webcast will be held on November 12, 2010 at 5 p.m. ET to discuss the Company's first quarter results. To participate in the teleconference, dial 800-319-4610 or 604- 638-5340. The webcast will be available at http://www.vecima.com/events_ir.php.

About Vecima Networks

Vecima Networks Inc. (TSX: VCM) designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. Vecima's hardware products incorporate original embedded software to meet the complex requirements of next-generation, high-speed digital networks. Service providers use Vecima's solutions to deliver services to a converging worldwide broadband market, including what are commonly known as "triple play" (voice, video and data) and "quadruple play" (voice, video, data and wireless) services. Vecima's solutions allow service providers to rapidly and cost-effectively bridge the final network segment that connects the system directly to end users, commonly referred to as "the last mile", by overcoming the bottleneck resulting from insufficient carrying capacity in legacy, last mile infrastructures. Vecima's products are directed at two principal markets: Converged Wired Solutions and Broadband Wireless. The Company has also developed and continues to focus on developing products to address emerging markets such as Voice over Internet Protocol, fibre to the home and IP video. More information is available at our website at www.vecima.com.

Forward-Looking Statements

Certain statements in this press release may constitute forward-looking statements within the meaning of applicable securities laws. All statements other than statements of historical fact are forward-looking statements. These statements include but are not limited to statements regarding management's intentions, belief or current expectations with respect to market and general economic conditions, future costs and operating performance. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and/or are beyond our control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include, but are not limited to, the current significant general economic uncertainty and credit and financial market volatility and the distinctive characteristics of Vecima's operations and industry that may have a material impact on, or constitute risk factors in respect of Vecima's future financial performance, as set forth under the heading "Risk Factors" in the Company's Annual Information Form dated September 28, 2010, a copy of which is available at www.sedar.com. In addition, although the forward-looking statements in this press release are based on what management believes are reasonable assumptions, such assumptions may prove to be incorrect. Consequently, readers should not place undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Vecima disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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