MNW March Networks

RNS Number:1335E
March Networks Corporation
06 June 2006


For Immediate Release                                                6 June 2006

                                March NetworksTM

        March Networks Announces Offer to Acquire Trax Retail Solutions


OTTAWA, ONTARIO, June 6, 2006 -- March NetworksTM (TSX:MN; AIM:MNW), a leading
provider of Internet Protocol (IP)-based digital video surveillance solutions,
announced today that it has entered into a definitive agreement to acquire the
assets of Trax Retail Solutions, Inc. and its affiliated company. Scottsdale,
Arizona based Trax is a leading provider of enterprise software for loss
prevention, store operations control and profit optimization solutions within
the retail sector.


The agreement calls for the payment by March Networks of cash and common shares
for a total purchase price of approximately $7.5 million USD plus an earn-out
component. Under terms of the agreement, March Networks will pay $5.0 million
USD in cash and have the option of paying the remaining amount in cash or common
shares. The agreement is subject to customary closing conditions and is expected
to close by the end of June 2006.


March Networks plans on maintaining a presence in Scottsdale and retaining many
of the approximately 50 Trax employees.


"This is a strategic acquisition for March Networks. The industry's leading
provider of digital video solutions combined with the leader in retail loss
prevention, risk management, and business optimization software will make for an
extremely compelling offer for progressive retailers looking to improve their
bottom line," said Peter Strom, President and CEO of March Networks. "The
acquisition of Trax is an important step towards our goal of becoming the world
leader in video-based business optimization solutions.


Shrinkage (inventory loss primarily caused by theft) is a significant problem
for retailers throughout the world. Market research estimates that $46 billion
USD is lost annually in the United States because of shrinkage. In Europe, the
estimated annual cost of shrinkage is Euro24 billion. Through a sophisticated
offering of business intelligence software, Trax leads customers to improved
in-store practices that help reduce shrinkage and result in better loss
prevention and higher profitability.


"Through the integration of March Networks' visual intelligence solutions and
Trax SmartStore retail business intelligence platform, March Networks will be
offering customers a new paradigm in intelligent management of retail operations
to support loss prevention activities, enhanced operational decision making, and
greater profitability," said Tony Jenkins, Vice President of Global Marketing at
March Networks.


For fiscal year 2007, March Networks expects that the Trax acquisition will
contribute less than 5% of the total revenue of the Company and will be slightly
dilutive to net earnings, excluding the impact of the amortization of acquired
assets. March Networks management will discuss further details of the
transaction on June 8, 2006 during the Company's fourth quarter and fiscal year
2006 financial results conference call.


Solutions from March Networks and Trax will be on display during the NRF Loss
Prevention Conference and Exhibition (booth #231) in Minneapolis from June 6-7,
2006.

An overview presentation of the joint March Networks and Trax solution is
available at www.marchnetworks.com/news/marchnetworkstrax1.pdf .


About March Networks

March NetworksTM (TSX:MN; AIM:MNW) is a leading provider of innovative IP-based
video applications used for security surveillance and monitoring. Our software
and hardware solutions allow businesses to increase operational efficiencies,
address risk, and manage assets with an integrated set of video-based
intelligence tools that support enhanced decision-making. Today, we are ISO
9001:2000 certified and serve the needs of leading banks, retail organizations
and transportation authorities in more than 40 countries throughout the world.
For more information, please visit www.marchnetworks.com.



Forward-Looking Statements

This release contains certain forward-looking information which 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. The Company's expectations and assumptions include
certain assumptions of future business following the consummation of the
acquisition, March Networks' ability to achieve the expected synergies as a
result of the acquisition, the strengthening of March Networks' position in the
retail vertical market as a result of the acquisition and the expected timing of
the closing of the acquisition by the end of June, 2006. Actual results could
differ materially from those expressed in any forward-looking statements due to
risk factors such as (1) the integration of the TRAX business and employees into
March Networks and the achievement of expected synergies, (2) the accuracy of
the Company's forecasting of acquisition-related restructuring costs, allocation
of the purchase price to intellectual property, goodwill and other acquisition
related inventory, and other asset adjustments, (3) the ability of March
Networks' to compete successfully in a highly competitive and rapidly changing
retail marketplace, and (4) the ability of March Networks' to retain key
employees of the acquired business. These and other risks and factors are
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.


*MARCH NETWORKS and the MARCH NETWORKS logo are trademarks of March Networks
Corporation. All other trademarks are the property of their respective owners.



For Further Information, Please Contact:
March Networks Corporation                     Tel:+1 613 591 8181
Anil Dilawri
e-mail: adilawri@marchnetworks.com

Buchanan Communications                        Tel: +44 (0)20 7466 5000
Bobby Morse




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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