March Networks Announces Q1 Revenue of $24.5 Million and Improves Business Outlook for Fiscal 2008

Aug. 7, 2007

OTTAWA , Aug. 7 /PRNewswire-FirstCall/ - March Networks(TM) (TSX:MN; AIM:MNW - all figures in Canadian dollars and in accordance with Canadian GAAP), a leading provider of IP-based video surveillance solutions, today announced preliminary revenue results for the first quarter of fiscal 2008 and changes to its business outlook for fiscal 2008.

Based on preliminary financial data, the Company's revenue in the first quarter of fiscal 2008 was approximately $24.5 million, which compares to $22.8 million for the same quarter last year, and compares to $19.8 million for the fourth quarter of fiscal 2007. The Company's largest customer accounted for approximately 40% of revenue in the first quarter of fiscal 2008 which compares to 52% in the same quarter last year and 31% in the fourth quarter of fiscal 2007.

The Company is increasing its revenue expectations for fiscal 2008 to between $94 million and $103 million based on higher anticipated revenues from its largest customer. Combined first quarter fiscal 2008 revenue and shipment backlog for this customer currently totals approximately $20 million. The Company now expects net earnings before income taxes for fiscal 2008 to be in the range of $0.5 million to $4.5 million.

March Networks will report its full first quarter results on August 29, 2007 and will discuss the full results and business outlook on a conference call and webcast to be held on August 30, 2007 at 8:30 a.m EDT ( 1:30 p.m. BST ).

About March Networks

March Networks(TM) (TSX:MN; AIM:MNW) is a leading provider of innovative video and data applications used for security surveillance, monitoring, analysis and business optimization. The company's software and IP-based hardware solutions allow businesses to increase operational efficiencies, address risk, and manage assets with an integrated set of video-based intelligence tools and business intelligence applications. The ISO 9001:2000 certified company serves the needs of leading financial institutions, retailers, transportation authorities, commercial/industrial organizations and government/homeland security agencies in approximately 50 countries. For more information, please visit www.marchnetworks.com.

Forward-Looking Statements

This release contains certain forward-looking information, including expectations of future business. This information is based on the company's current expectations and assumptions that are subject to a variety of risks and uncertainties that are difficult to predict and that may be beyond March Networks' control. Actual results could differ materially from those expressed in any forward-looking statements due to factors such as customer demand and timing of purchasing decisions, increased levels of competition, technological changes and the successful development of new products, dependence on third-party manufacturers, risks relating to intellectual property infringement claims, and other risks and factors identified in March Networks' public filings with regulatory authorities in Canada . March Networks assumes no obligation to update these forward-looking statements as a result of new information or future events.

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respective owners.

SOURCE MARCH NETWORKS CORPORATION

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