SR Telecom acquires Netro Corporation for US$122 million

On September 4, 2003, SR Telecom Inc. completed its acquisition of Netro Corporation for approximately US$122 million in cash and shares. The transaction was structured as a three-cornered merger pursuant to which SR Telecom Inc. acquired all of the issued and outstanding shares of Netro Corporation, a company listed on the NASDAQ National Market. The transaction required SR Telecom Inc. to have its shares quoted on the NASDAQ National Market and to become a registrant with the U.S. Securities and Exchange Commission. Immediately prior to the merger becoming effective, Netro Corporation shareholders received a US$100 million dividend and upon the merger becoming effective an aggregate of approximately 4.15 million of SR Telecom Inc. shares.

Assisting SR Telecom Inc.'s team led by David L. Adams, Senior Vice-President, Finance and Chief Financial Officer were Peter Villani, Gilles Leclerc and Daniel Yelin (Securities, Mergers and Acquisitions) and Gilles Carli and Thomas Copeland (Taxation) of the Montreal office of Fasken Martineau in connection with Canadian and general corporate matters.