Edgewater Wireless Announces Proposed Private Placement

(via Thenewswire.ca)

OTTAWA, CANADA - August 27, 2012 - Edgewater Wireless Systems Inc (YFI; TSX-V, the "Company"), a leading supplier of wireless local area network (WLAN) solutions, today announced that it has entered into an agreement with Northern Securities Inc. to act as agent (the "Agent") for a best efforts private placement of units of the Company (the "Offering").

The Offering will consist of up to 20,833,333 units (each unit, a "Unit") at a price of $0.12 per unit for aggregate gross proceeds of up to $2,500,000. Each Unit will consist of one common share and one half of a common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall be exercisable for a 24 month period from date of issue at a price of $0.20.

In connection with the Offering, the Company will pay the Agent a cash commission of 7.5% of the aggregate gross proceeds of the Offering and will issue to the Agent a number of broker warrants ("Broker Warrants") equal to 7.5% of the aggregate number of Units sold pursuant to the Offering. Each Broker Warrant will be exercisable into one Unit at the Unit issue price for a period of 2 years.

The Offering is subject to the approval of the TSX Venture Exchange. Securities issued in the Offering will be subject to a hold period of four months and one day pursuant to applicable securities laws.

The net proceeds from the Offering will be used by the Company for working capital and general corporate purposes. The Company is experiencing cash flow difficulties and has recently taken steps to reduce expenditures while working towards securing a financing that will enable it to meet short term operating costs. These steps have included a temporary layoff of certain employees of the Company. The proceeds from the Offering will assist the Company in meeting short term operating costs while it works towards completing recent orders for its products. The Company believes that revenues from sales of its products over the next 12 months will reduce the need for additional equity or debt financings.

About Edgewater Wireless Systems Inc.: Edgewater Wireless develops and commercializes leading edge technologies and intellectual property for the communications market. Edgewater Wireless delivers advanced product solutions designed to meet the high-performance, high quality of service (QoS) and high-reliability needs of service providers and their customers. Leveraging over twenty (20) patents, Edgewater Wireless' WiFi3 is redefining WLAN infrastructure with its wideband, multi-channel radio and high-capacity Access Point solutions, and delivering next generation WiFi, today. For more information, please visit www.edgewaterwireless.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release. This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.

For further information:

Edgewater Wireless Systems Inc Andrew Skafel President +1 613.271.3710 x 501 andrews@edgewaterwireless.com

Nadine Desruisseaux

Investor Relations

Capital Ideas Investor Relations

+1.647.202.5292

nadine@capitalideasir.com

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