Redline Provides Update on Class Action

TORONTO, Oct. 12 /CNW/ - Redline Communications Group Inc. ("Redline"TSX:  RDL) announced that it has been served with a proposed class action commenced in the Ontario Superior Court on September 10, 2010 by Notice of Action, and Statement of Claim issued September 30, 2010, by Nor-Dor Developments Limited and Deborah Bozh alleging, among other things, that Redline and certain of its officers and directors misrepresented that Redline's financial statements in the years 2006 through 2009 were prepared in accordance with GAAP.  Redline intends to vigorously defend these allegations.

About Redline Communications Group
Redline Communications (www.redlinecommunications.com) is a leading provider of specialized wireless broadband systems used to cost-effectively deploy distributed applications and services. Redline systems are used by municipalities  to quickly and easily deploy or extend their public safety  networks; by oil and gas companies to connect their digital oil fields; by service providers and enterprises to bring dedicated internet access to business users, and by the military to rapidly deploy secure networks.  For over 10 years, Redline has been delivering powerful, versatile and reliable wireless solutions through certified partners in the Americas; the Middle East, and Africa.

NOTE: All registered and unregistered trademarks mentioned in this release are the property of their respective owners.

Forward-Looking Statements
Certain statements in this release, including the estimate of future revenues, sales, provided above, 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 Annual 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.

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For further information:

Redline Communications
Matthew Bogart
[email protected]
[phone] x2378