$50,000,000 US Project Financing for SRT's Chilean Affiliate

Peter Villani of Fasken Martineau DuMoulin LLP also acted as counsel to SR Telecom Inc. (SRT) in the US$50 million project financing of SRT’s affiliate in Chile, Comunicación y Telefonía Rural S.A. by the Export Development Corporation (EDC) and the Inter-American Development Bank (IADB). The loan, which was announced on January 10, 2000, is subject to the finalization of various conditions precedent, the completion of which is anticipated prior to the end of February 2000. The loan is to be provided equally by EDC and IADB when fully drawn. The additional funds will be used largely to provide funding for the continuation of construction of CTR’s telecommunications network, which provides telephone services to public payphones, businesses and individual subscribers in nine regions with a population of over 1.2 million people in the south central area of Chile.

Acting for EDC was in-house counsel James F. L. McArdle and legal counsel to IADB was Kathy Schumacher of Milbank, Tweed, Hadley & McCloy (New York).