SR Telecom Outsources Manufacturing, Cuts 70 Jobs

MONTREAL, March 27, 2006 -- SR Telecom Inc. announced today it will outsource its manufacturing operations and eliminate 80 percent of its manufacturing work force.

SR Telecom makes broadband fixed wireless access solutions used by large telephone and Internet service providers to supply broadband data and carrier-class voice services to customers. Its principal offices are in Montreal, Mexico City and Bangkok and it employs approximately 400. The company said in a statement released today that it has signed a multiyear agreement with an unnamed company to outsource its manufacturing operations.

The company currently has 87 employees in core manufacturing operations and will be eliminating 70 under the plan. SR Telecom said the action comes as part of a restructuring plan to make it more competitive. The transition will start immediately, and SR Telecom said it expected all outsourced manufacturing of its non-WiMAX products to be completed by May 31, 2006.

For more information, visit: www.srtelecom.com