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Exhibit 99.1

FOR IMMEDIATE RELEASE

DRAGONWAVE INC. ANNOUNCES FIRST QUARTER FISCAL YEAR 2012 RESULTS

        Ottawa, Canada, July 6, 2011 — DragonWave Inc. (TSX: DWI; NASDAQ: DRWI) a leading global supplier of packet microwave radio systems for mobile and access networks, today announced financial results for its first quarter of fiscal year 2012, ended May 31, 2011. All figures are reported in U.S. dollars and were prepared in accordance with U.S. generally accepted accounting principles.

        Revenue for the first quarter of fiscal year 2012 was $11.0 million, compared with $48.7 million in the first quarter of fiscal year 2011 and $15.1 million in the fourth quarter of fiscal year 2011. Revenue from customers within North America was $8.2 million, compared with $42.9 million in the first quarter of the prior fiscal year. DragonWave had two customers who generated more than 10% of revenue in the first quarter of fiscal year 2012.

        Net loss in the first quarter of fiscal year 2012 was $9.9 million or ($0.28) per diluted share, compared with net income of $9.7 million or $0.26 per diluted share in the first quarter of fiscal year 2011. Gross margin for the first quarter was 42.0%, compared with 43.6% in the first quarter of the prior fiscal year.

        "We are engaged in numerous promising opportunities in markets throughout the world, including North America, Latin America, Europe and Asia and we remain positive about our prospects. While we cannot be certain about the exact timing for each opportunity, we maintain our view that a number of them have the potential to be landed during the second-half of this fiscal year," said DragonWave President and CEO Peter Allen.

        Cash, cash equivalents, restricted cash, and short-term investments totaled $79.9 million at the end of the first quarter of fiscal year 2012, compared to $89.7 million at the end of the fourth quarter of fiscal year 2011, and $115.8 million at the end of the first quarter of fiscal year 2011.

Revenue Outlook for Q2 FY2012

        DragonWave expects revenue for the second quarter of fiscal year 2012 to be in the range of $12 million to $15 million.

Webcast and Conference Call Details

        The DragonWave management team will discuss the results on a conference call and webcast beginning at 8:30 a.m. Eastern Time, tomorrow, July 7, 2011.

Toll-free North America Dial-in: 877-312-9202

International Dial-in: 408-774-4000

The live webcast and presentation slides will be available at:
http://investor.dragonwaveinc.com/events.cfm.

An archive of the webcast will be available at the same link.

About DragonWave

        DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave's carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave's products is wireless network backhaul. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave's corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com.

        DragonWave® is a registered trademark of DragonWave Inc.

Forward-Looking Statements

        Certain statements in this release, including the estimate of the revenue range for the second quarter of fiscal year 2012 provided above, constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. These statements are subject to certain assumptions, risks and uncertainties. Material factors and assumptions used to develop such estimates include DragonWave's expectations regarding: the network deployment plans of its existing and new customers, and the volume and timing of orders, shipments and revenue recognition. Readers are cautioned not to place undue reliance on such statements. These statements are provided to assist external stakeholders in understanding DragonWave's expectations as of the date of this release and may not be appropriate for other purposes. Actual results, performance, achievements or developments of DragonWave may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in DragonWave's Annual Information Form dated May 4, 2011 and other public documents filed by DragonWave with Canadian and United States securities regulatory authorities, which are available at www.sedar.com and www.sec.gov, respectively, and include the following:

•

DragonWave relies on a small number of customers for a large percentage of its revenue and DragonWave's future growth depends on the success of its customer diversification efforts.

•

DragonWave's growth is dependent on the development and growth of the market for high-capacity wireless communications services.

•

Network deployment plans by DragonWave's existing and potential customers are capital intensive and the timing of such deployments is affected by such customers' access to capital.

•

DragonWave faces intense competition from several competitors and if it does not compete effectively with these competitors, its revenues may not grow and could decline. DragonWave also faces competition from indirect competitors.

•

DragonWave relies on its suppliers to supply components for its products and the Company is exposed to the risk that these suppliers will not be able to supply components on a timely basis, or at all.

•

DragonWave may conduct acquisitions of products and businesses. There are risks associated with such acquisitions.

•

DragonWave's success depends on its ability to develop new products and enhance existing products.

•

If DragonWave is required to change its pricing models to compete successfully, its margins and operating results may be adversely affected.

•

DragonWave's quarterly revenue and operating results can be difficult to predict and can fluctuate substantially.

•

DragonWave has a lengthy and variable sales cycle.

        DragonWave assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether because of new information, future events or otherwise, except as expressly required by law.

Investor Contact:	Media Contact:
John Lawlor VP, Investor Relations DragonWave Inc. jlawlor@dragonwaveinc.com Tel: 613-599-9991 ext 2252	Nadine Kittle Marketing Communications DragonWave Inc. nkittle@dragonwaveinc.com Tel: 613-599-9991 ext 2262

CONSOLIDATED BALANCE SHEETS

Expressed in US $000's except share and per share amounts
(unaudited)

		As at May 31, 2011			As at February 28, 2011
Assets
Current Assets
	Cash and cash equivalents		63,641			77,819
	Restricted cash		146			714
	Short term investments		16,145			11,181
	Trade receivables		9,598			11,579
	Inventory		32,014			28,204
	Other current assets		5,768			5,306
	Future income tax asset		538			553
			127,850			135,356
Long Term Assets
	Property and equipment		7,180			7,560
	Future income tax asset		813			808
	Intangible assets		14,656			14,929
	Goodwill		11,927			11,927
			34,576			35,224
Total Assets			162,426			170,580
Liabilities
Current Liabilities
	Accounts payable and accrued liabilities		16,525			15,967
	Deferred revenue		1,910			1,453
	Contingent royalty		644			622
	Contingent consideration		14,853			14,622
			33,932			32,664
Long Term Liabilities
	Contingent royalty		3,112			3,290
	Other long term liabilities		1,479			1,999
			4,591			5,289
Commitments
Shareholders' equity
	Capital stock		171,832			171,570
	Contributed surplus		3,050			2,642
	Deficit		(41,857	)		(31,967	)
	Accumulated other comprehensive loss		(9,623	)		(9,618	)
Total shareholder's equity			123,402			132,627
	Non-controlling interests		501			—
Total Equity			123,903			132,627
Total Liabilities and Equity			162,426			170,580
Shares issued & outstanding			35,471,677			35,421,893

CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)

Expressed in US $000's except share and per share amounts
(unaudited)

		Three months ended May 31
		2011			2010
REVENUE			11,049			48,726
	Cost of sales		6,405			27,495
Gross profit			4,644			21,231
EXPENSES
	Research and development		6,597			4,631
	Selling and marketing		4,080			4,128
	General and administrative		3,632			2,561
	Government assistance		(350	)		—
			13,959			11,320
Income (loss) before amortization of intangible assets and other items			(9,315	)		9,911
	Amortization of intangible assets		(587	)		(82	)
	Accretion expense		(276	)		—
	Interest income		84			32
	Investment gain (loss)		39			(49	)
	Foreign exchange gain		120			117
Income (loss) before income taxes			(9,935	)		9,929
	Income tax expense		9			231
Net Income (loss)			(9,944	)		9,698
	Net Loss Attributable to Non-Controlling Interest		54			—
Net Income (Loss) applicable to shareholders			(9,890	)		9,698
	Foreign currency translation differences for foreign operations		5			—
Net and Comprehensive Income (Loss) applicable to shareholders			(9,895	)		9,698
Income (loss) per share
	Basic		(0.28	)		0.26
	Diluted		(0.28	)		0.26
Weighted Average Shares Outstanding
	Basic		35,429,049			36,916,893
	Diluted		35,429,049			37,930,704

CONSOLIDATED STATEMENTS OF CASH FLOWS

Expressed in US $000's
(unaudited)

			Three months ended May 31
			2011			2010
Operating Activities
Net Income (Loss)				(9,944	)		9,698
Items not affecting cash
		Amortization of property and equipment		829			631
		Amortization of intangible assets		587			82
		Accretion expense		276			—
		Non cash royalty amortization		(201	)		—
		Stock-based compensation		492			287
		Unrealized foreign exchange loss		1			16
		Non cash future income tax expense		9			231
		Inventory impairment (recovery)		57			(57	)
		Unrealized loss (gain) on short term investments		(39	)		49
		Accrued interest on short term investments		(1	)		(7	)
				(7,934	)		10,930
Changes in non-cash working capital items				(1,284	)		(5,265	)
				(9,218	)		5,665
Investing Activities
	Acquisition of property and equipment			(449	)		(2,150	)
	Acquisition of intangible assets			(314	)		(75	)
	Purchase of short term investments			(22,432	)		(45,308	)
	Maturity of short term investments			17,508			8,074
				(5,687	)		(39,459	)
Financing Activities
	Share repurchase			—			(1,054	)
	Equity contribution by non-controlling interest in DW-HFCL			555			—
	Issuance of common shares net of issuance costs			178			147
				733			(907	)
Effect of foreign exchange on cash and cash equivalents				(6	)		(16	)
Net decrease in cash and cash equivalents				(14,178	)		(34,717	)
Cash and cash equivalents at beginning of period				77,819			105,276
Cash and cash equivalents at end of period				63,641			70,559
Cash paid during the period for interest				—			—

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Exhibit 99.1

DRAGONWAVE INC. ANNOUNCES FIRST QUARTER FISCAL YEAR 2012 RESULTS
CONSOLIDATED BALANCE SHEETS Expressed in US $000's except share and per share amounts (unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Expressed in US $000's except share and per share amounts (unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOWS Expressed in US $000's (unaudited)