Enablence Technologies Inc. Announces Third Quarter Results for Fiscal 2009

OTTAWA, ONTARIO, Mar 30 (MARKET WIRE) --
Enablence Technologies Inc. ("Enablence" or the "Company") (TSX VENTURE:
ENA), a leading supplier of broadband optical equipment and components,
including fiber-to-the-home (FTTH) equipment for triple-play residential
and business services, announced today financial results for its fiscal
third quarter ending January 31, 2009.

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E
arnings Highlights
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(Cdn $000, except per share
amounts)
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Three months ended Nine months ended
Jan 31 Jan 31
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2009 2008 2009 2008
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Revenues $14,790 $261 $31,189 $707
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Operating loss (10,388) (3,516) (27,034) (8,837)
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Impairment of intangibles and
goodwill (47,700) - (47,700) -
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Net loss (49,450) (2,642) (64,014) (7,405)
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Loss per share $(0.24) $(0.02) $(0.34) $(0.06)
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Revenues for the third quarter were $14.8 million, up 68% or $6.0
million from the $8.8 million generated during the second quarter of
fiscal 2009 and a $14.5 million increase from $261,000 during the third
quarter of fiscal year 2008. The revenue growth in this quarter resulted
mainly from the acquisition of Pannaway Technologies Inc. ("Pannaway"),
whose financial results were included in Enablence's consolidated results
since the acquisition date of November 19, 2008. During the third quarter
the Company recorded a net loss of $49.5 million ($0.24 per share). This
loss included non-cash write-downs of $47.7 million of the Company's
intangible assets and goodwill, arising from the Company's acquisitions
in 2007 and 2008, offset by a $7.4 million non-cash income tax recovery.
The net loss for the third quarter of fiscal year 2008 was $2.6 million
($0.02 per share), of which $1.1 million comprised non-cash charges. The
Company's cash position was $18.7 million on January 31, 2009, compared
to $32.2 million on October 31, 2008, reflecting the cash used for
one-time re-structuring costs following the Pannaway acquisition, the
funding of Pannaway's working capital requirements and general company
operations during the third quarter.

"The acquisition of Pannaway was a key milestone for Enablence as it
helped expand our customer base by adding nearly 300 rural telco
customers in North America. Pannaway also broadened our product portfolio
to provide a migration path from DSL and POTS to Active Optical Networks
and Passive Optical Networks, positioning us strongly in the important
rural markets of the U.S." said Arvind Chhatbar, Chief Executive Officer.
"This acquisition, combined with our ongoing initiatives, also
contributed to the improvement in gross margins by about 12% from the
previous quarter and augmented the size of the domestic sales team
responsible for selling a wider array of products." said Mr. Chhatbar.

"As we vertically integrate and consolidate operations in pursuit of a
competitive edge, Enablence, like so many other companies, is not immune
to the consequences of the unprecedented economic turmoil in the U.S. and
around the world. We evaluated the carrying values of our intangible
assets and goodwill, and determined that their value has been impaired
due to the recessionary economic conditions and that a fairer value has
to be associated with these assets to reflect the present operating
reality. As a result, impairment associated write-downs added $0.20 per
share to the loss for the quarter." said Mr. Chhatbar.

"On the whole, we are pleased with the overall increase in revenues and
gross margins in a tough environment" says Mr. Chhatbar. "The addition of
Pannaway and its immediate integration into our existing operations will
result in an annual savings of more than $11 million. When coupled with
the added benefits from vertical integration we anticipate further
improvements in our gross margins in the coming quarters with the
ultimate goal of achieving profitability for both of our Divisions by end
of the next fiscal year." said Mr. Chhatbar. "As we work towards those
goals, we recognize that the unstable economic environment makes any
projections difficult, but we are closely monitoring all aspects of our
operations and intend to implement whatever actions are necessary to ride
out the economic storm" added Mr. Chhatbar.

Enablence will hold a conference call on Tuesday, March 31, 2009 between
10:00 am and 10:30 am EST. The CEO and the Vice President of Finance will
discuss the Company's performance and results. Interested parties should
call 1-866-223-7781. Management will respond to questions from analysts
on this call.

About Enablence Technologies Inc.

Enablence Technologies Inc., (TSX VENTURE: ENA) a publicly traded company
headquartered in Ottawa, Canada, designs, manufactures and sells optical
components, subsystems and systems to a global customer base.

Enablence's Systems Division has an expanding Fiber-to-the-Premises
(FTTP) product portfolio featuring a variety of architectural options. It
enables service providers to evolve their access networks from
traditional copper-based networks to advanced optical communications
access networks that are based on state of the art IP and Ethernet
standards, for triple play voice, video and data services including HDTV,
IP Telephony and ultrafast internet access. The Division's network
equipment has been implemented at over 420 service providers world-wide
that serve over 4 million subscribers. In November 2008, Pannaway merged
into the Enablence Systems' Division.

Enablence's Optical Components and Subsystems Division is a global leader
in applying Planar Lightwave Circuit (PLC) technology to integrate
multiple components into a single optical chip to reduce footprint and
costs. Network and equipment designers around the world turn to Enablence
for a variety of components and subsystems for access, metro and
long-haul applications including transceivers, splitters, waveguides,
optical channel monitors, multiplexers, ROADMs, switches, tunable
dispersion compensators, and photodiodes. The Division serves over 120
system and subsystem developers and its products have been integrated in
all major communications networks world-wide, serving tens of millions of
subscribers.

Forward Looking Statements

The statements in this press release may contain forward looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Corporation's
expectations and projections. For details on these statements and the
risks and uncertainties please refer to the Company's disclosures at
www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Contacts:
Enablence Technologies Inc.
Ronald Benn,
Vice President - Finance
613-270-7865

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