RNS Number:1367K
March Networks Corporation
09 October 2006


For Immediate release                                             9 October 2006


                           March Networks Corporation


                    March Networks Settles Patent Litigation


OTTAWA, Oct. 6 /CNW Telbec/ - March Networks(TM) (TSX:MN; AIM:MNW), a leading
provider of Internet Protocol (IP)-based digital video surveillance solutions,
today announced a settlement in the patent litigation launched in April 2005 by
E-Watch in the Eastern District of Texas.


To obtain this settlement March Networks has agreed to pay E-Watch a sum of $2
million USD (approximately $2.24 million CAD). March Networks makes no admission
regarding the validity, enforceability or infringement of any E-Watch patents.


March Networks will reflect this settlement as a charge to earnings in the
second quarter of fiscal year 2007. As a result of this charge the Company
expects net earnings for the fiscal year ending April 30, 2007 to decline by
approximately $1.5 million ($0.08 per share on a diluted basis).


Forward-Looking Statements


This release contains certain forward-looking information. 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.


*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:

March Networks Corporation
Anil Dilawri,
(613) 591-8181, adilawri@marchnetworks.com


Buchanan Communications
Jeremy Garcia / James Strong
+44 (0) 20 7466 5000, jeremyg@buchanan.uk.com



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

END
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