Redline Communications Announces CEO Transition and Board Appointment

TORONTO, Oct. 11, 2013 /CNW/ - Redline Communications Group Inc. (TSX: RDL) ("Redline" or the "Company"), a leading provider of specialized broadband wireless solutions, today announced that Eric Melka, its chief executive officer currently on medical leave, has advised of his plan to leave the Company by February 2014. Mr. Melka will remain an active member of Redline's board of directors.

In November 2009, Mr. Melka was appointed to execute a turnaround of Redline Communications which was struggling with outdated technology, decreasing sales and mounting losses. Since that time, Redline successfully revitalized its product line, sales organization and customer base, reversing a ten-year trend of significant losses. Today, Redline is a recognized brand in several key markets, including energy where the Company's sales have grown the most.

"Eric Melka was the driver behind the Redline turnaround and his leadership during these times was both critical to the company's success and truly appreciated by the board of directors and shareholders," said Philippe de Gaspé Beaubien, Redline's board chairman. "We engaged Eric at a crucial point in the Redline's history, and he rose to the challenge, doing more than anyone could have anticipated. While we are saddened to see him go, we are pleased that he will continue with Redline as an active member of its board of directors."

Robert Williams, who has been leading Redline as interim CEO since August 8, 2013, will continue in the role during Mr. Melka's absence.  "We sincerely thank Eric for his work during the past four years. With Eric's departure, the board will undertake a formal search for a CEO candidate who will continue to strategically grow the company," added Mr. de Gaspé Beaubien.

"I am extremely proud of the results and changes that we made during my time at Redline, and I feel that with the momentum, resources and technology the company has now, it is in a great position to grow," said Mr. Melka. "I maintain my confidence in Redline's success. I truly appreciate the incredible support from our staff, our shareholders and customers."

Redline is also very pleased to announce the appointment of John Wilson to its board of directors.

Mr. Wilson is president and chief executive officer of Quantapoint Inc, a technology-driven solutions provider to the oil and gas industry. He has spent the past 32 years working at the intersection of technology and the oil and gas industry, having held executive positions in the oilfield service sector, including with companies such as Stratos Global Corporation, where he was senior vice president and general manager of broadband services; Trade Ranger Inc. as its CEO; Vertias DGC as president of the exploration services division; and Haliburton Company as executive vice president. Mr. Wilson was born in the United Kingdom and holds a Bachelor degree in Electronic Engineering and Physics from Loughborough University of Technology, and a Master of Business Administration from the Polytechnic of Central London.

"We welcome John to the Redline Board of Directors. His appointment follows an extensive search and we are pleased to be able to have the benefit of someone with his expertise, particularly in Redline's key vertical, the oil and gas industry," said Mr. de Gaspé Beaubien.

With the appointment of Mr. Wilson, Redline's board now has 6 directors, 5 of whom are independent.

The Company also announced that Mr. Mario Bélanger, Redline's chief operating officer, has left Redline to pursue other opportunities. The Company has no current plans to replace him.

About Redline Communications
Redline Communications is the innovator of Virtual Fiber™, a specialized wireless broadband system used by governments, the military, oil and gas, and the telecom industry worldwide to cost-effectively deploy distributed services and applications.  Redline 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 for over a decade through its global network of certified partners. For more information visit www.rdlcom.com.

SOURCE: Redline Communications Group Inc.

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