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Press release from CNW Group

Redline Wins $2M Order From New Oil & Gas Customer, provides update on Q2 bookings

Wednesday, July 18, 2012

Redline Wins $2M Order From New Oil & Gas Customer, provides update on Q2 bookings08:36 EDT Wednesday, July 18, 2012-- Major U.S. Oil & Gas Operator uses Redline high-capacity wireless for real-time communications to nomadic oil rigs --TORONTO, July 18, 2012 /CNW/ - Redline Communications Group Inc. (TSX: RDL) ("Redline"), a leading provider of specialized broadband wireless solutions, today announced they have received and shipped a $2 million order for their rugged industrial wireless system to a major oil and gas company. The system is being deployed in the U.S. and will provide high capacity, high availability communications between drilling rigs and the centralized control offices of one of the world's largest and most successful oil extraction companies.Redline's RDL-3000 family of rugged industrial wireless products was selected by this new customer to deliver a secure, high speed wireless backbone, providing seamless connectivity for the drilling rigs in two oil fields, one in South Texas and another in North Dakota. Wireless Redline devices mounted on towers and rigs deliver connectivity across hundreds of miles of terrain and Redline's patent-pending Rapid Auto Steering (RAS) technology allows wireless coverage to operate uninterrupted even as drilling rigs move from location to location."We know how challenging it is to operate networks in oil fields and our products have been designed with the ruggedness, reliability and resilience that the energy sector demands," said Eric Melka, Redline CEO. "We're pleased to see how well our products are being accepted in this new and exciting machine-to-machine space.""This contract is another indicator of our strengthening position within the oil and gas sector, the fastest growing part of our business," added Melka. "This new large order has contributed to a strong overall second quarter, for which we now expect Bookings to at least match our record Q1 Bookings."Instant and real-time communication in an oil field is critical to both safety and efficiency.  With the Redline Virtual Fiber™ network, live video feeds are delivered wirelessly from drilling rigs to head office, enhancing team collaboration and enabling faster decisions.  Extending voice communications with VoIP and providing access to corporate information systems out into the field helps increase productivity, and a video surveillance system will monitor operations, ensuring the safety of personnel and equipment.   Because Redline's network is also transparent and open, all of the standard IT assets (routers, switching equipment, cameras and phones) used in the wired offices can now be used anywhere in the operation.  This ability to extend existing networks to the wireless oil field means a more cost effective and easily managed IT operation.Key to the success of this most recent project is Redline's RDL-3000 product family that, in addition to being rugged and incredibly reliable, has the flexibility to deliver high-speed bandwidth on demand in both uplink and downlink directions. This becomes important when many types of applications are run over a single wireless network as some applications like video conferencing need an enormous amount of uplink capacity, a performance attribute that is not possible with other wireless delivery systems such as satellite or cellular. When coupled with VOIP, WI-FI, and machine-to-machine traffic, each with their own unique transmission needs, the ability of a system to deliver a range of QoS options is also critical, and Redline's system delivers this and more.Note: To better assess the health and growth of the Redline's business, Redline reports on several key metrics, including "Orders or Bookings", "Shipped or Shipments" and "Backlog". Definitions of these categories can be found in Redline's Management Discussion and Analysis for the quarter ended March 31, 2012 ("Q1 2012 MD&A"), copies of which are available on SEDAR at www.sedar.com.About Redline CommunicationsRedline Communications (www.rdlcom.com) the innovator of Virtual Fiber™, a specialized broadband wireless solution used by companies and governments worldwide to cost-effectively deploy distributed services and applications.  Redline wireless Virtual Fiber™ solutions are used to facilitate and enhance public safety networks, deploy and extend secure networks, connect digital oil fields and smart grids, and bring dedicated internet access wherever and whenever it's needed. Redline has been delivering powerful, versatile and reliable wireless systems to governments, the military, oil and gas, and the telecom industry for over a decade through certified partners in the Americas, the Middle East, and Africa.Forward Looking StatementsCertain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws.  In some cases, forward-looking statements can be identified by terms such as "could", "expect", "may", "will", "anticipate", "believe", "intend", "estimate", "plan", "potential", "project" or other expressions concerning matters that are not historical facts.  Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management's current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the "Assumptions").  While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.Many risks, uncertainties and other factors could cause the actual results of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: significant competition, competitive pricing practices, cautious capital spending by customers, industry consolidations, rapidly changing technologies, evolving industry standards, frequent new product introductions, short product life cycles and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Redline's performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline's suppliers and contract manufacturing agreements including the Company's reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline's efforts to expand internationally; a failure to protect Redline's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; and Redline's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy (collectively, the "Risks"). For additional information on these Risks, see Redline's most recently filed Annual Information Form ("AIF") and MD&A, which are available on SEDAR at www.sedar.com and on the Company's website at www.redlinecommunications.com. Redline assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All forward looking statements contained in this release are expressly qualified in their entirety by this cautionary statement.For further information: REDLINE Contacts:    Lynda Partner Corporate Communications +1-613-618-3200 lpartner@rdlcom.com George Kypreos Chief Financial Officer +1.905.479.8344 gkypreos@rdlcom.com Cory Pala Investor Relations +1-416-657-2400 Cory.Pala@evestor.com