Redline Communications Expands Energy Sales Group and Streamlines Operations

Cost Reductions and New Pilot Projects in Energy Sector Support Drive to Profitability

TORONTO, Dec. 3, 2013 /CNW/ - Redline Communications (www.rdlcom.com) Group Inc. (TSX: RDL), a leading provider of broadband wireless solutions for oilfield networking and machine-to-machine (M2M) communications, today announced a reorganization of its sales group for better alignment with key vertical markets, and a streamlining of operational costs including a reduction in overall workforce. The streamlining is part of the Company's commitment to operational profitability.

To support growing sales to the oil and gas market the Company has increased the number of sales personnel focused on this sector by retraining certain existing salespeople and hiring new salespeople with experience selling networks in the oil and gas sector. This sales organization will operate independently of Redline's existing sales organization which continues to sell to military, municipal governments and service providers via a well-established global partner network.

Redline has seen strong growth in the number of pilot network installations it uses to demonstrate the capabilities of its solution. In the current quarter, the Company has installed three new pilot systems - two in the Middle East and one in South America. "We have seen that once installed, these relatively small pilot projects typically expand into much larger implementations generating between $2 million and $5 million in lifetime revenue," said Robert Williams, Redline's interim CEO. "Our strategy is to focus more sales resources on this effective selling method so we can realize the more predictable revenue growth that comes after a successful pilot installation."

In order to realize improved operational efficiencies, the Company has reduced its workforce of full-time, part-time and contract employees by 39 people. In addition the Company has implemented a number of initiatives which will also reduce overall spending. Once fully implemented at the end of the fourth quarter of 2013, the combined impact of these changes is expected to reduce total annual operating expenses by approximately $10 million.

"We are committed to achieving our objectives for year-over-year revenue growth and operational profitability in 2014," added Williams. "We have invested in innovative products for the oil and gas market and we are seeing a return on our investment in the form of an increased number of pilots which are predictors of future revenue. The changes we have made to staffing levels were not easy ones to make but they are necessary to allow us to meet our profitability goals."

About Redline Communications
Redline Communications (www.rdlcom.com) is the innovator of Virtual Fiber™, a specialized wireless broadband solution used to cost-effectively deploy and extend secure networks, enable M2M applications, connect digital oilfields and smart grids, facilitate and enhance public safety networks, and bring Internet access wherever and whenever it's needed - regardless of terrain or how remote. For more than a decade Redline has delivered powerful, versatile and reliable wireless solutions to governments, militaries, oil and gas companies and telecom service providers through its global network of certified partners. For more information visit www.rdlcom.com.

Forward Looking Statements
Certain 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 effects 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; failure to realize expected savings from cost reduction initiatives; significant changes in the composition of the Board of Directors or management team that might result in increased recruitment or severance charges; 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.

SOURCE: Redline Communications Group Inc.

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