VCom Signs Major WiMAX Agreement with MRO-TEK to Supply Wireless Broadband Equipment Across India

December 7, 2005

Release Date: December 7, 2005
VICTORIA, BRITISH COLUMBIA–(CCNMatthews – Dec. 7, 2005) – VCom Inc. (TSX:VCM) has been selected by Bangalore, India headquartered MRO-TEK Ltd., to supply VCom’s WiMAX-ready Base Stations and Customer Premise Equipment to serve market needs for WiMAX technology in India.

Subsequent to achieving domestic regulatory approvals for India and compliance, MRO-TEK will offer VCom’s 3.3 – 3.4 GHz WiMAX-ready products domestically in India under the MRO-TEK brand label via a multi-year supply agreement totaling $10,000,000 USD.

This supply agreement represents one of the largest commitments to WiMAX technology in the South Asia region to date and recognizes VCom’s design leadership for WiMAX, the surging demand for broadband in India and India’s rapidly advancing economic growth. The agreement also opens the door for other VCom products, including an expanded WiMAX product family, to be added over time based on market demand.

Substantial needs for last-mile broadband technology in India are being driven by its rapidly growing business and technology sectors and by nationwide backhaul availability via high-capacity, yet underutilized optical backbone networks. National carriers, mobile telephony operators and Internet service providers of all types are positioning to offer broadband services in either local or national markets via recently awarded local and nationwide RF spectrum licenses at 3.3-3.4 GHz which permit deployment of two-way broadband wireless technologies. WiMAX technology is perceived as the leading contender for the use of this spectrum due to its superiority for Non Line of Sight (NLOS) performance, its scalability and the support of industry technology heavyweights such as Intel and Fujitsu.

MRO-TEK is a publicly traded India corporation with a strong brand identity within India for broadband technologies and a nationwide sales and technical support organization. MRO-TEK is also a long-term partner of RAD Data Communications, spanning over 14 years for technical and commercial success of RAD products in India, a long-standing relationship that has established MRO-TEK as a quality domestic supplier with a nationwide presence in India. MRO-TEK will market the VCom WiMAX-ready products under the “Maple” brand name.

VCom’s Supply Agreement with MRO-TEK also represents a major marketing success for VCom’s new Asia-Pacific Regional Sales Headquarters in Sydney, Australia which opened in April of 2005 with the stated objective of enlarging VCom’s presence and revenues from the region and specifically from India and China. “We are very excited to see such early validation of our decision to expand internationally which has resulted in our substantial new partnership with MRO-TEK,” said VCom’s Chairman & CEO, Dr. Surinder Kumar.

About VCom

VCom designs, manufactures and sells products that enable broadband access to cable, wireless and telephony networks. VCom’s hardware products incorporate embedded software developed by it to meet the complex requirements of next-generation, high-speed digital networks. Service providers use VCom’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. VCom’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. VCom’s products are directed at three principal markets: Data Over Cable, Broadband Wireless and Digital Video. 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. VCom currently employs approximately 500 people in Western Canada.

Forward-Looking Statements

This news release contains forward-looking statements which are not historical facts, but are based on certain assumptions and reflect VCom’s current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. VCom disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.


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Mike Barry
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Corporate & Investor Relations
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