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**CODE      OF ETHICS**

| **1.  ** | **Definitions** |
|--------------------|-----------------|

| 1.1 | “Company”                used in this code of ethics means and includes SR Telecom Inc., all                of its                subsidiaries and affiliates and their successors and                assigns; |
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| 1.2 | "Insiders"                means the Company, its subsidiaries, its directors and officers and                those                of its subsidiaries and any person controlling at least ten per cent                (10%)                of the securities of the Company in a category carrying a voting                or                participating right or an unlimited right to a share of the profits                and in                its assets in case of winding-up (including the directors and officers                of                this person in the case of a                company); |
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| 1.3 | "Person                having a special relationship with the Company" means every person                who,                through its relationship with the business, holds Confidential Information                and/or Privileged Information,                including |
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| 1.3.1   | every                person who has acquired privileged information in the course of his                relations with or of working for the Company, as a result of that                person's                functions or of his engaging in business and professional                activities; |
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| 1.3.2   | every                person having privileged information that, to his knowledge, was                disclosed                by an insider or a person subject to this restriction;                and |
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| 1.3.3   | every                person who has acquired privileged information that he knows to be                such                concerning the Company; |
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| 1.4 | "Confidential                Information" means all of the knowledge or information of a confidential                or secret nature, including, without restriction, the knowledge or                information related to the skills, technical demonstrations, computer                programs, formulas, processes, compositions, methods, devices,                computer-based tools, accessories, experimental and research work,                inventions, models, instructions, contracts, agreements, software,                algorithms, nomenclatures, computer codes and diagrams, databases                and                plans, graphics, studies, notes, memorandums, practices, books, client                lists, price lists, personnel files and any other technical, financial,                commercial and scientific matter related to the                Company; |
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| 1.5 | The                term "privileged information" means any information that has not                been                disclosed to the public and that could affect the decision of a reasonable                investor; |
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| **2.  ** | **Conflicts                of interest** |
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| 2.1   | Any                person having a special relationship with the Company shall not get                involved in a conflict of interest that could interfere with his                or her                objectivity or the exercise of his or her independent judgment for                the                purpose of fulfilling his or her duties for the Company, or affect                his or                her commitment to act in the best interest of the                Company; |
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| 2.2   | All                employees shall refrain from having professional interests outside                their                work that could keep them from achieving top performance, or from                having                direct or indirect interests that could interfere with their objectivity                or the exercise of their independent judgment, the whole as defined                in the                preceding paragraph; |
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| 2.3   | Any                person having a special relationship with the Company shall not request                or                grant favours nor give or receive gifts if this could affect the                judgment                of the receiver in connection with fulfilling his or her duties in                the                name of the Company; |
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| 2.4 | Any                person having a special relationship with the Company shall not be                under                any obligation towards a previous employer that is inconsistent with                the                rules of this code of ethics or that could restrict his or her activities                in the name of the Company; |
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| 2.5 | More                generally, any person having a special relationship with the Company                shall                not get involved in a situation that could put the Company in an                ambiguous, awkward or even questionable position from either a legal,                social or moral standpoint. |
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| **3.  ** | **Confidential                Information** |
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| 3.1 | Any                    person having a special relationship with the Company agrees                    to comply                    with the Confidential Information non-disclosure clauses contained                    in his                    or her contract of employment or services agreement, except with                    the prior                    consent expressly given by one of the members of the Company's                    senior                    management, namely by the president and one of the vice presidents                    of the                    Company. This person also agrees not to use this Confidential                    Information                    out of the business context of the                    Company. |
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| **4.  ** | **Privileged                information and trading the securities of the Company on the stock                market** |
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| 4.1 | The                laws that govern the Company as a public company restrict the use                of                Privileged Information. These restrictions apply not only to insiders,                as                defined in the Act, but to any person having a special relationship                with                the Company, as defined in section 1.3                hereof; |
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| 4.2 | The                  restrictions in the Act can be summarized as                  follows: |
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|   | 4.2.1  |   | No                person or company who is an insider of the Company or has a special                relationship with the Company may, while having knowledge of Privileged                Information, buy, sell or otherwise negotiate securities of the Company,                or any other company's securities whose price or value could fluctuate                according to the price or value of the securities of the Company,                the                whole as long as this information has not been made                public; |
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|   | 4.2.2       |   | Neither                the Company, an insider of the Company or any person having a special                relationship with the Company may communicate Privileged Information                to                another person or company, or benefit in any other way from this                Privileged Information;                                                                                                                                                                                                                                |

| 4.3 | The                penalties for any breach of the above are criminal penalties (fines                and/or                imprisonment) and civil penalties (payment of damages and assignment                of                the benefits resulting from the forbidden transaction in favour of                the                Company); |
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| 4.4 | Any                person charged with using the Privileged Information in an unlawful                manner                is personally liable; |
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| 4.5 | The                same rules apply to the insiders of the Company and to the persons                having                a special relationship with the Company that hold Privileged Information                about the companies doing business with the Company or who obtained                Privileged Information through their business relationship with these                companies; |
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| 4.6 | The                Company is not opposed to having its employees or service providers                hold                shares or other securities issued by the Company since it is an entirely                personal and voluntary decision on their                part; |
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| 4.7 | In                order to preserve the integrity of capital markets and to protect                the                reputation of the Company as a responsible issuer and, if possible,                to                protect its employees, the Company has deemed necessary to establish                certain rules of conduct. Consequently, the following rules of conduct                shall be adhered to by all the directors and officers of the Company                and                of its subsidiaries, and by any person having a special relationship                with                the Company; |
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|   | 4.7.1 | As                a general rule, if an insider or a person having a special relationship                with the Company becomes aware of Privileged Information,                he or she shall not buy or sell securities until the information                within                his or her knowledge becomes known to the public. If this information                is                distributed in a period during which this insider or person is allowed                to                perform transactions (as stated in sub-section 4.7.2), he or she                will then                be free to transact between the second (2nd) business day following                the                distribution of the press release mentioning this Privileged Information                and the end of the period otherwise stated in these rules of conduct.                In                addition, the insiders or the persons having a special relationship                with                the Company shall not communicate to anybody the Privileged Information                of                which they may become aware; |
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|   | 4.7.2 | For                    their own protection, the insiders of the Company and any person                    having a                    special relationship with the Company may not buy or sell any                    securities                    of the Company nor suggest that anybody buy or sell these securities                    outside the "exercise period" which commences on the first day                    of the                    month following the end of a quarter and ends on the second day                    following                    the issuance of a news release disclosing quarterly results (provided,                    however, that during this period there shall have occurred no                    event that                    this person may have become aware of and would be considered                    Privileged                    Information); |
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|   | 4.7.3 | The                          directors and officers of the Company shall also, at their                          discretion,                          abstain from making frequent market transactions that would                          be perceived                          as speculative activities and lead to believe that they                          are unduly                          capitalizing on occasional market fluctuations. In the                          same context, the                          directors and officers shall abstain from selling short                          the securities of                          the Company; |
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|   | 4.7.4 | As                                for the exercise of share purchase options granted                                to certain insiders of                                the Company, the exercise of these options shall                                occur during the exercise                                period stated in sub-section 4.7.2. If an employee                                or a service provider                                wishes to exercise an option outside the exercise                                period, he must obtain                                the prior written consent of the president or of                                the senior vice-president                                finance and chief financial                                officer; |
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| 4.8 | The                summary contained in this paragraph only provides general guidance                on the                obligations relating to ethics and confidentiality and any person                who                wishes to receive more information may contact the senior vice president                finance and chief financial                officer; |
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| **5.  ** | **Insider                report** |
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| 5.1 | The                insiders must report on their control over securities within ten                (10)                calendar days following the date they became insiders and state any                change                in their control within ten (10) calendar days following this                change. |
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| **6.  ** | **Intellectual                Property** |
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| 6.1 | Any                invention, discovery, improvement or innovation (including in computer                programming) related to the business of the Company, conceived or                made                during or after working hours, belongs to the Company as specified                in the                Intellectual Property and Confidentiality Agreement signed by each                employee; |
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| 6.2 | Any                person having a relationship with the Company shall notify without                delay                the Company of any invention, discovery, improvement or innovation.                The                patents, industrial designs, copyrights or other rights, as applicable,                belonging to the Company must be assigned to the Company. In this                context,                this person agrees to assist and collaborate in the preparation of                patent                applications and copyright registrations and to participate in all                the                activities related to the protection of the Company's intellectual                property, the whole without additional                compensation. |
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| **7.  ** | **Distribution                and application of the                Code** |
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| 7.1 | The                directors and officers of the Company will be responsible for the                distribution of this Code to the relevant                parties; |
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| 7.2 | Compliance                with this Code is an essential condition for the employment of the                persons                working for the Company and any failure to apply the Code may result                in a                disciplinary action by the Company. This disciplinary action could                involve                the termination of the defaulting                person; |
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| 7.3 | If                there is any doubt about the interpretation of the provisions of                this                Code, requests shall be made to the senior vice president finance                and                chief financial officer of the                Company; |
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| 7.4 | Any                person having a special relationship with the Company who derogates                from                the provisions of this Code or is aware of a breach of the provisions                of                this Code shall immediately notify his or her immediate supervisor                along                with the senior vice president finance and chief financial officer                of the                Company; |
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| 7.5 | The                Company has the right to obtain, from time to time, confirmation                by the                employee or the service provider that he or she has at all times                complied                with the provisions of this                Code. |
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