----

----

| Title of each class                         | Name of each exchange on which registered |
|---------------------------------------------|-------------------------------------------|
| Subordinate Voting Shares without par value | NASDAQ                                    |
| Subordinate Voting Shares without par value | TSX                                       |

----

----

----

| Large accelerated filer      o | Accelerated filer      x | Non-accelerated filer      o |
|--------------------------------------------------------------|--------------------------------------------------------|------------------------------------------------------------|

| U.S. GAAP      o | International Financial Reporting Standards as issued by the      oInternational Accounting Standards Board | Other      x |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|

----

TABLE OF CONTENTS

PART I

Item 1.                 Identity of Directors, Senior Management and Advisers

Item 2.                 Offer Statistics and Expected Timetable

Item 3.                 Key Information

| A.   | Selected Financial Data |
|----------------|-------------------------|

| B.   | Capitalization and Indebtedness |
|----------------|---------------------------------|

| C.   | Reasons for the Offer and Use of Proceeds |
|----------------|-------------------------------------------|

| D.   | Risk Factors |
|----------------|--------------|

Item 4.                 Information on the Company

| A.   | History and Development of the Company |
|----------------|----------------------------------------|

| B.   | Business Overview |
|----------------|-------------------|

| C.   | Organizational Structure |
|----------------|--------------------------|

| D.   | Property, Plants and Equipment |
|----------------|--------------------------------|

Item 4A.              Unresolved Staff Comments

Item 5.                 Operating and Financial Review and Prospects

Item 6.                 Directors, Senior Management and Employees

| A.   | Directors and Senior Management |
|----------------|---------------------------------|

| B.   | Compensation |
|----------------|--------------|

| C.   | Board Practices |
|----------------|-----------------|

| D.   | Employees |
|----------------|-----------|

| E.   | Share Ownership |
|----------------|-----------------|

Item 7.                 Major Shareholders and Related Party Transactions

| A.   | Major Shareholders |
|----------------|--------------------|

| B.   | Related Party Transactions |
|----------------|----------------------------|

| C.   | Interests of Experts and Counsel |
|----------------|----------------------------------|

Item 8.                 Financial Information

| A.   | Consolidated Statements and Other Financial Information |
|----------------|---------------------------------------------------------|

| B.   | Significant changes |
|----------------|---------------------|

Item 9.                 The Offer and Listing

| A.   | Offer and Listing Details |
|----------------|---------------------------|

| C.   | Markets |
|----------------|---------|

Item 10.               Additional Information

| A.   | Share Capital |
|----------------|---------------|

| B.   | Memorandum and Articles of Association |
|----------------|----------------------------------------|

|                                       C.   | Material Contracts |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|

| D.   | Exchange Controls |
|----------------|-------------------|

| E.   | Taxation |
|----------------|----------|

| F.   | Dividends and Paying Agents |
|----------------|-----------------------------|

| G.   | Statement by Experts |
|----------------|----------------------|

|  H.   | Documents on Display |
|----------------------|----------------------|

| I.   | Subsidiary Information |
|----------------|------------------------|

----

Item 11.               Qualitative and Quantitative Disclosures about Market Risk

Item 12.               Description of Securities Other than Equity Securities

PART II

Item 13.               Defaults, Dividend Arrearages and Delinquencies

Item 14.               Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 15.               Controls and Procedures

Item 16.               [Reserved]

Item 16A.            Audit Committee Financial Expert

Item 16B.            Code of Ethics

Item 16C.            Principal Accountant Fees and Services

Item 16D.            Exemptions from the Listing Standards for Audit Committees

Item 16E.             Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16F.             Change in Registrant's Certifying Acco

Item 16G.             Corporate Governance

PART III

Item 17.               Financial Statements

Item 18.               Financial Statements

Item 19.               Exhibits

----

Table of Contents

PART I.

| Item 1.   | Identity of Directors, Senior Management and Advisers |
|---------------------|-------------------------------------------------------|

| Item 2.   | Offer Statistics and Expected Timetable |
|---------------------|-----------------------------------------|

| Item 3.   | Key Information |
|---------------------|-----------------|

|  A. |  Selected Financial Data |
|----------|-------------------------------|

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                              |   | Years ended August 31,                                        |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2011                                                          |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                              |   | (in thousands of US dollars, except share and per share data) |    |
| Consolidated Statements of Earnings Data:                                                                                                                                                                                                                                                                                                                                                                         |   |                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts under Canadian GAAP                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                                                   |   | $                                                             | 269,743 |   |   | $ | 202,757 |   |   | $ | 153,082 |   |   | $ | 160,981 |   |   | $ | 129,839 |   |
| Cost of sales (1)                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                          | 100,296 |   |   |   | 73,901 |   |   |   | 57,897 |   |   |   | 64,364 |   |   |   | 53,896 |   |
| Gross margin                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                          | 169,447 |   |   |   | 128,856 |   |   |   | 95,185 |   |   |   | 96,617 |   |   |   | 75,943 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling and administrative                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                          | 87,062  |   |   |   | 66,612 |   |   |   | 58,067 |   |   |   | 54,869 |   |   |   | 43,885 |   |
| Net research and development                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                          | 47,927  |   |   |   | 37,847 |   |   |   | 27,213 |   |   |   | 24,580 |   |   |   | 14,863 |   |
| Amortization of property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                     |   |                                                          | 6,772   |   |   |   | 5,757 |   |   |   | 4,453 |   |   |   | 4,137 |   |   |   | 2,696 |   |
| Amortization of intangible assets                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                          | 9,183   |   |   |   | 7,773 |   |   |   | 5,033 |   |   |   | 3,862 |   |   |   | 2,861 |   |
| Restructuring charges                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                          | − |   |   |   | − |   |   |   | 963 |   |   |   | − |   |   |   | − |   |
| Government grants                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                          | − |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | (1,079 | ) |
| Impairment of goodwill                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                          | − |   |   |   | − |   |   |   | 21,713 |   |   |   | − |   |   |   | − |   |
| Total operating expenses                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                          | 150,944 |   |   |   | 117,989 |   |   |   | 117,442 |   |   |   | 87,448 |   |   |   | 63,226 |   |
| Earnings (loss) from operations                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                          | 18,503  |   |   |   | 10,867 |   |   |   | (22,257 | ) |   |   | 9,169 |   |   |   | 12,717 |   |
| Interest and other income (expenses)                                                                                                                                                                                                                                                                                                                                                                              |   |                                                          | 511     |   |   |   | (292 | ) |   |   | 592 |   |   |   | 4,381 |   |   |   | 4,676 |   |
| Foreign exchange gain (loss)                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                          | (3,808  | ) |   |   | (1,496 | ) |   |   | 1,074 |   |   |   | 404 |   |   |   | (44 | ) |
| Earnings (loss) before income taxes                                                                                                                                                                                                                                                                                                                                                                               |   |                                                          | 15,206  |   |   |   | 9,079 |   |   |   | (20,591 | ) |   |   | 13,954 |   |   |   | 17,349 |   |
| Income tax expense (recovery)                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                          | 8,783   |   |   |   | 5,529 |   |   |   | 266 |   |   |   | 337 |   |   |   | (20,825 | ) |
| Earnings (loss) from continuing operations before extraordinary gain                                                                                                                                                                                                                                                                                                                                              |   |                                                          | 6,423   |   |   |   | 3,550 |   |   |   | (20,857 | ) |   |   | 13,617 |   |   |   | 38,174 |   |
| Net earnings from discontinued operations                                                                                                                                                                                                                                                                                                                                                                         |   |                                                          | 12,926  |   |   |   | 3,069 |   |   |   | 4,272 |   |   |   | 1,771 |   |   |   | 4,101 |   |
| Earnings (loss) before extraordinary gain                                                                                                                                                                                                                                                                                                                                                                         |   |                                                          | 19,349  |   |   |   | 6,619 |   |   |   | (16,585 | ) |   |   | 15,388 |   |   |   | 42,275 |   |
| Extraordinary gain                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                          | − |   |   |   | − |   |   |   | − |   |   |   | 3,036 |   |   |   | − |   |
| Net earnings (loss) for the year                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                             | 19,349  |   |   | $ | 6,619 |   |   | $ | (16,585 | ) |   | $ | 18,424 |   |   | $ | 42,275 |   |
| Basic earnings (loss) from continuing operations before extraordinary gain per share                                                                                                                                                                                                                                                                                                                         |   | $                                                             | 0.11    |   |   | $ | 0.06 |   |   | $ | (0.34 | ) |   | $ | 0.20 |   |   | $ | 0.55 |   |
| Diluted earnings (loss) from continuing operations before extraordinary gain per share                                                                                                                                                                                                                                                                                                                            |   | $                                                             | 0.10    |   |   | $ | 0.06 |   |   | $ | (0.34 | ) |   | $ | 0.20 |   |   | $ | 0.55 |   |
| Basic net earnings from discontinued operations per share                                                                                                                                                                                                                                                                                                                                                         |   | $                                                             | 0.22    |   |   | $ | 0.05 |   |   | $ | 0.07 |   |   | $ | 0.02 |   |   | $ | 0.06 |   |
| Diluted net earnings from discontinued operations per share                                                                                                                                                                                                                                                                                                                                                       |   | $                                                             | 0.21    |   |   | $ | 0.05 |   |   | $ | 0.07 |   |   | $ | 0.02 |   |   | $ | 0.06 |   |
| Basic and diluted extraordinary gain per share                                                                                                                                                                                                                                                                                                                                                                    |   | $                                                             | − |   |   | $ | − |   |   | $ | − |   |   | $ | 0.05 |   |   | $ | – |   |
| Basic net earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                             | 0.32    |   |   | $ | 0.11 |   |   | $ | (0.27 | ) |   | $ | 0.27 |   |   | $ | 0.61 |   |
| Diluted net earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                             | 0.31    |   |   | $ | 0.11 |   |   | $ | (0.27 | ) |   | $ | 0.27 |   |   | $ | 0.61 |   |
| Basic weighted average number of shares used in per share calculations (000’s)                                                                                                                                                                                                                                                                                                                         |   |                                                          | 60,000  |   |   |   | 59,479 |   |   |   | 61,845 |   |   |   | 68,767 |   |   |   | 68,875 |   |
| Diluted weighted average number of shares used in per share calculations (000’s)                                                                                                                                                                                                                                                                                                                       |   |                                                          | 61,488  |   |   |   | 60,616 |   |   |   | 61,845 |   |   |   | 69,318 |   |   |   | 69,555 |   |
| Other consolidated statements of earnings data:                                                                                                                                                                                                                                                                                                                                                                   |   |                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross research and development                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                                             | 57,226  |   |   | $ | 44,551 |   |   | $ | 33,584 |   |   | $ | 30,167 |   |   | $ | 23,396 |   |
| Net research and development                                                                                                                                                                                                                                                                                                                                                                                      |   | $                                                             | 47,927  |   |   | $ | 37,847 |   |   | $ | 27,213 |   |   | $ | 24,580 |   |   | $ | 14,863 |   |
| Amounts under U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                             | 26,164  |   |   | $ | 3,777 |   |   | $ | (8,179 | ) |   | $ | 18,424 |   |   | $ | 42,257 |   |
| Basic net earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                             | 0.44    |   |   | $ | 0.06 |   |   | $ | (0.13 | ) |   | $ | 0.27 |   |   | $ | 0.61 |   |
| Diluted net earnings (loss) per share                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                             | 0.43    |   |   | $ | 0.06 |   |   | $ | (0.13 | ) |   | $ | 0.27 |   |   | $ | 0.61 |   |
| Basic weighted average number of shares used in per share calculations (000’s)                                                                                                                                                                                                                                                                                                                         |   |                                                          | 60,000  |   |   |   | 59,479 |   |   |   | 61,845 |   |   |   | 68,767 |   |   |   | 68,875 |   |
| Diluted weighted average number of shares used in per share calculations (000’s)                                                                                                                                                                                                                                                                                                                       |   |                                                          | 61,488  |   |   |   | 60,616 |   |   |   | 61,845 |   |   |   | 69,318 |   |   |   | 69,555 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | As at August 31,             |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2011                         |    |   | 2010 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (in thousands of US dollars) |    |
| Consolidated Balance Sheets Data:                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Amounts under Canadian GAAP                                                                                                                                                                                                                                                                                                                                                                                                            |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                                         |   | $                            | 22,771  |   |   | $ | 21,440 |   |   | $ | 9,777 |   |   | $ | 5,329 |   |   | $ | 5,175 |   |
| Short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                         | 47,091  |   |   |   | 10,379 |   |   |   | 59,105 |   |   |   | 81,626 |   |   |   | 124,217 |   |
| Total assets                                                                                 |   |                         | 321,086 |   |   |   | 273,502 |   |   |   | 240,371 |   |   |   | 293,066 |   |   |   | 279,138 |   |
| Long-term debt (excluding current portion)                                                                                                                                                                                                                                                                                                                                                                                             |   |                         | 968     |   |   |   | 1,419 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Share capital                                                                                |   |                         | 110,341 |   |   |   | 106,126 |   |   |   | 104,846 |   |   |   | 142,786 |   |   |   | 150,019 |   |
| Shareholders’ equity                                                                   |   | $                            | 263,746 |   |   | $ | 220,419 |   |   | $ | 208,045 |   |   | $ | 259,515 |   |   | $ | 250,165 |   |
| Amounts under U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                                         |   | $                            | 22,771  |   |   | $ | 21,440 |   |   | $ | 9,777 |   |   | $ | 5,329 |   |   | $ | 5,175 |   |
| Short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                         | 47,091  |   |   |   | 10,379 |   |   |   | 59,105 |   |   |   | 81,626 |   |   |   | 124,217 |   |
| Total assets                                                                                 |   |                         | 321,133 |   |   |   | 269,556 |   |   |   | 236,492 |   |   |   | 280,426 |   |   |   | 268,389 |   |
| Long-term debt (excluding current portion)                                                                                                                                                                                                                                                                                                                                                                                             |   |                         | 968     |   |   |   | 1,419 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Share capital                                                                                |   |                         | 422,837 |   |   |   | 418,622 |   |   |   | 417,342 |   |   |   | 568,917 |   |   |   | 599,519 |   |
| Shareholders’ equity                                                                   |   | $                            | 263,382 |   |   | $ | 213,740 |   |   | $ | 204,093 |   |   | $ | 246,802 |   |   | $ | 239,343 |   |

| (1)   | The cost of sales is exclusive of amortization, shown separately. |
|-----------------|-------------------------------------------------------------------|

----

Table of Contents

|  B. |  Capitalization and Indebtedness |
|----------|---------------------------------------|

|  C. |  Reasons for the Offer and Use of Proceeds |
|----------|-------------------------------------------------|

|  D. |  Risk Factors |
|----------|--------------------|

| ·   | Difficulty forecasting, budgeting and planning due to the uncertain spending plans of current or prospective customers; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increased competition for fewer network projects and sales opportunities; |
|--------------------|---------------------------------------------------------------------------|

| ·   | Increased pricing pressure that may adversely affect revenue and gross margin; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | Higher cost structure compared to revenue level; |
|--------------------|--------------------------------------------------|

| ·   | Increased risk of charges related to excess and obsolete inventories and the write off of other intangible assets and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Customer financial difficulty and increased difficulty in collecting accounts receivable. |
|--------------------|-------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | increased competition for business; |
|--------------------|-------------------------------------|

| ·   | reduced demand; |
|--------------------|-----------------|

| ·   | limited number of potential customers; |
|--------------------|----------------------------------------|

| ·   | competition from companies with lower production costs, including companies operating in lower-cost environments; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | introduction of new products by competitors; |
|--------------------|----------------------------------------------|

| ·   | greater economies of scale for higher-volume competitors; |
|--------------------|-----------------------------------------------------------|

| ·   | large customers, who buy in high volumes, can exert substantial negotiating leverage over us; and |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | resale of used equipment. |
|--------------------|---------------------------|

----

Table of Contents

| ·   | issue shares that would dilute individual shareholder percentage ownership; |
|--------------------|-----------------------------------------------------------------------------|

| ·   | incur debt; |
|--------------------|-------------|

| ·   | assume liabilities and commitments; |
|--------------------|-------------------------------------|

| ·   | incur significant expenses related to acquisition costs; |
|--------------------|----------------------------------------------------------|

| ·   | incur significant expenses related to amortization of additional intangible assets; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | incur significant impairment losses of goodwill and intangible assets related to such acquisitions; and |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | incur losses from operations. |
|--------------------|-------------------------------|

| ·   | the risk of not realizing the expected benefits or synergies of such acquisitions; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | problems integrating the acquired operations, technologies, products and personnel; |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | risks associated with the transfer of acquired know-how and technology; |
|--------------------|-------------------------------------------------------------------------|

| ·   | unanticipated costs or liabilities; |
|--------------------|-------------------------------------|

| ·   | diversion of management’s attention from our core business; |
|--------------------|-------------------------------------------------------------------|

| ·   | adverse effects on existing business relationships with suppliers and customers; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | risks associated with entering markets in which we have no or limited prior experience; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | potential loss of key employees, particularly those of acquired organizations. |
|--------------------|--------------------------------------------------------------------------------|

----

Table of Contents

| ·   | challenges in staffing and managing foreign operations due to the limited number of qualified candidates, employment laws and business practices in foreign countries, any of which could increase the cost and reduce the efficiency of operating in foreign countries; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuations among currencies; |
|--------------------|--------------------------------|

| ·   | our inability to comply with import/export, environmental and other trade compliance regulations of the countries in which we do business, together with unexpected changes in such regulations; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | measures to ensure that we design, implement and maintain adequate controls over our financial processes and reporting in the future; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | failure to adhere to laws, regulations and contractual obligations relating to customer contracts in various countries; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | difficulties in establishing and enforcing our intellectual property rights; |
|--------------------|------------------------------------------------------------------------------|

| ·   | inability to maintain a competitive list of distributors for indirect sales; |
|--------------------|------------------------------------------------------------------------------|

| ·   | tariffs and other trade barriers; |
|--------------------|-----------------------------------|

| ·   | economic instability in foreign markets; |
|--------------------|------------------------------------------|

| ·   | wars, acts of terrorism and political unrest; |
|--------------------|-----------------------------------------------|

| ·   | language and cultural barriers; |
|--------------------|---------------------------------|

| ·   | lack of integration of foreign operations; |
|--------------------|--------------------------------------------|

| ·   | potential foreign and domestic tax consequences; |
|--------------------|--------------------------------------------------|

| ·   | technology standards that differ from those on which our products are based, which could require expensive redesign and retention of personnel familiar with those standards; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | longer accounts receivable payment cycles and possible difficulties in collecting payments which may increase our operating costs and hurt our financial performance; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | failure to meet certification requirements. |
|--------------------|---------------------------------------------|

| ·   | difficulty hiring and retaining appropriate engineering and manufacturing resources due to intense competition for such resources and resulting wage inflation; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | exposure to misappropriation of intellectual property and proprietary information; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | heightened exposure to changes in the economic, regulatory, security, and political conditions of these countries; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

| ·   | fluctuations in currency exchange rates and tax compliance in India and China; |
|--------------------|--------------------------------------------------------------------------------|

| ·   | cash management and repatriation of profit; and |
|--------------------|-------------------------------------------------|

| ·   | high inflation rates which could increase our operating costs. |
|--------------------|----------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

| ·   | costly repairs; |
|--------------------|-----------------|

| ·   | product returns or recalls; |
|--------------------|-----------------------------|

| ·   | damage to our brand reputation; |
|--------------------|---------------------------------|

| ·   | loss of customers, failure to attract new customers or achieve market acceptance; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | diversion of development and engineering resources; |
|--------------------|-----------------------------------------------------|

| ·   | legal actions by our customers, including claims for consequential damages and loss of profits; and |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | legal actions by governmental entities, including actions to impose product recalls and/or forfeitures. |
|--------------------|---------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | length of the sales cycle for certain products, especially those that are higher priced and more complex; |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | sales cycle prolonged by lengthy customer acceptance; |
|--------------------|-------------------------------------------------------|

| ·   | timing of product launches and market acceptance of new products for us as well as our competitors; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | our ability to sustain product volumes and high levels of quality across all product lines; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | timing of shipments for large orders; |
|--------------------|---------------------------------------|

| ·   | effect of seasonality on sales and bookings; and |
|--------------------|--------------------------------------------------|

| ·   | losing key accounts and not successfully developing new ones. |
|--------------------|---------------------------------------------------------------|

| ·   | fluctuating demand for telecommunications test and service assurance equipment; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | changes in the capital spending and operating budgets of our customers, which may cause seasonal or other fluctuations in product mix, volume, timing and number of orders we receive from our customers; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | order cancellations or rescheduled delivery dates; |
|--------------------|----------------------------------------------------|

| ·   | pricing changes by our competitors or suppliers; |
|--------------------|--------------------------------------------------|

| ·   | variations in the mix between higher and lower-margin products and services; |
|--------------------|------------------------------------------------------------------------------|

| ·   | customer bankruptcies and difficulties in collecting accounts receivable; |
|--------------------|---------------------------------------------------------------------------|

| ·   | restructuring and impairment charges; |
|--------------------|---------------------------------------|

| ·   | foreign exchange rate fluctuations; and |
|--------------------|-----------------------------------------|

| ·   | general economic conditions, including a slowdown or recession. |
|--------------------|-----------------------------------------------------------------|

| ·   | properly identify and anticipate customer needs; |
|--------------------|--------------------------------------------------|

| ·   | innovate and develop new products; |
|--------------------|------------------------------------|

| ·   | gain timely market acceptance for new products; |
|--------------------|-------------------------------------------------|

| ·   | manufacture and deliver our new products on time, in sufficient volume and with adequate quality; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | price our products competitively; |
|--------------------|-----------------------------------|

| ·   | continue investing in our research and development programs; and |
|--------------------|------------------------------------------------------------------|

| ·   | anticipate competitors’ announcements of new products. |
|--------------------|--------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Item 4.   | Information on the Company |
|---------------------|----------------------------|

|  A. |  History and Development of the Company |
|----------|----------------------------------------------|

----

Table of Contents

|  B. |  Business Overview |
|----------|-------------------------|

----

Table of Contents

| ·   | Capitalize on bandwidth explosion in the telecom industry with the introduction of innovative, market-driven test and service assurance solutions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Focus on the convergence of IP fixed and mobile networks, including emerging technologies like high-speed Ethernet and 4G/LTE; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Leverage our leadership in optical testing for new opportunities like wireless backhaul, fiber-to-the-home, and 40G and 100G network upgrades; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Move up the value chain on IP networks by leveraging the intelligence, or computing capabilities, of our modular test platforms to develop a series of value-added solutions; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Accelerate profitability through globalization and execution. |
|--------------------|---------------------------------------------------------------|

| Corporate Performance Objectives (Fiscal 2010-2012)           |
|---------------------------------------------------------------|
| Objectives                                                    | Metrics | Results After Two Years |
| Increase sales by a CAGR* of at least:                        | 25% | 25.4% |
| Raise gross margin from 61.3% to:                             | 65% | 62.7% |
| Increase adjusted EBITDA** in dollars by a CAGR* of at least: | 30% | 45.4% |

| * | Compound annual growth rate. |
|---|------------------------------|

| ** | EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets and impairment of goodwill. Adjusted EBITDA represents EBITDA excluding the gain from the disposal of discontinued operations. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ·   | Performance monitoring and analysis; |
|--------------------|--------------------------------------|

| ·   | Correlation and analysis engine; |
|--------------------|----------------------------------|

| ·   | VoIP service assurance; |
|--------------------|-------------------------|

| ·   | IP/MPLS service assurance; |
|--------------------|----------------------------|

| ·   | Mobile backhaul and metro Ethernet service assurance; |
|--------------------|-------------------------------------------------------|

| ·   | Mobile service assurance; |
|--------------------|---------------------------|

| ·   | IP video service assurance; |
|--------------------|-----------------------------|

| ·   | Advanced analytics; and |
|--------------------|-------------------------|

| ·   | Custom solutions services. |
|--------------------|----------------------------|

| ·   | BrixCall: Voice quality and performance management; |
|--------------------|-----------------------------------------------------|

| ·   | BrixNGN: IP/MPLS and carrier Ethernet (mobile backhaul and metro Ethernet) service quality monitoring; |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | BrixHawk SA: Mobile network service quality monitoring and customer experience management; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | BrixVision: Comprehensive IP video quality and performance management; and |
|--------------------|----------------------------------------------------------------------------|

| ·   | BrixView: Advanced analytics and business intelligence software. |
|--------------------|------------------------------------------------------------------|

----

Table of Contents

| Wireless Test and Solutions                                           |
|-----------------------------------------------------------------------|
| Product Type                                                          | Product Line | Typical Application |
| Protocol Analyzer, Distributed Analyzer bridging to Service Assurance | Hawk portfolio | Protocol analysis to verify correct network behavior. |
| Network Simulator                                                     | EAST portfolio, Navtel portfolio | Regression and load testing. |
| Mobile Communications Intelligence Tools                              | NetHawk F10, NetHawk X6 and NetHawk C2 | Intelligence tools for police, armed forces and other governmental organizations to fight organized crime and terrorists. |

----

Table of Contents

| ·   | market study and research feasibility; |
|--------------------|----------------------------------------|

| ·   | product definition; |
|--------------------|---------------------|

| ·   | development feasibility; |
|--------------------|--------------------------|

| ·   | development; |
|--------------------|--------------|

| ·   | qualification; and |
|--------------------|--------------------|

| ·   | transfer to production. |
|--------------------|-------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ·   | Customer Relationship Management (CRM) Administration – Business Ownership of EXFO’s CRM toolset and evolution. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Sales Support – Leverage the effectiveness of its sales force by providing pre-sales and demo support, as well as guiding customers in purchasing the correct equipment for their respective applications, issuing quotations, and promoting our extended warranty service and support program. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Order Management – Accurately process customer orders from entry through fulfillment and delivery, and manage order changes. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Customer Service – Serve as a primary interface for inbound and outbound customer communication. Provide customers with one central point of contact and work with the customer from purchasing equipment to helping them arrange for service, if necessary. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Product Support – Provide expert technical support and deliver product service worldwide. Directly manage EXFO’s Worldwide Service Centers, and the Service Partner Program. Where applicable, furnish installation and on-site servicing for more complex equipment and applications. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Systems Services – Provide pre-sale, delivery, post-sale technical support, and system actualization of EXFO’s test and service assurance systems. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Education Services – Aggregate expertise, develop material, and deliver free and fee-based training. |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | Professional Services – Provide value-added solution services for EXFO’s test and system customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Production.  From production planning to product shipment, our production department is responsible for manufacturing high-quality products on time. Factories are organized in work cells; each cell consists of specialized technicians and equipment and has full responsibility over a product family. Technicians are cross-trained and versatile enough, so that they can carry out specific functions in more than one cell. This allows shorter lead times by alleviating bottlenecks. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | Product Engineering and Quality.  This department, which supports our production cells, acts like a gatekeeper to ensure the quality of our products and the effectiveness of our manufacturing processes. It is responsible for the transfer of products from research and development to manufacturing, product improvement, documentation, metrology, and the quality control and regulatory compliance process. Quality control represents a key element in our manufacturing operations. Quality is assured through product testing at numerous stages in the manufacturing process to ensure that our products meet stringent industry requirements and our customers’ performance requirements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Supply-Chain Management.  This department is responsible for sales forecasting, raw material procurement, material-cost reduction and vendor performance management. Our products consist of optical, electronic and mechanical parts, which are purchased from suppliers around the world. Approximately one-third of our parts are manufactured to our specifications. Materials represent the largest portion of our cost of goods. Our performance is tightly linked to vendor performance, requiring greater emphasis on this critical aspect of our business. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | product performance and reliability; |
|--------------------|--------------------------------------|

| ·   | price; |
|--------------------|--------|

| ·   | level of technological innovation; |
|--------------------|------------------------------------|

| ·   | product lead times; |
|--------------------|---------------------|

| ·   | breadth of product offerings; |
|--------------------|-------------------------------|

| ·   | ease of use; |
|--------------------|--------------|

| ·   | brand-name recognition; |
|--------------------|-------------------------|

| ·   | customer service and technical support; |
|--------------------|-----------------------------------------|

| ·   | strength of sales and distribution relationships; and |
|--------------------|-------------------------------------------------------|

| ·   | financial stability. |
|--------------------|----------------------|

----

Table of Contents

----

Table of Contents

| ·   | a method and apparatus for characterizing optical power levels in three-wavelength, bidirectional fiber-to-the-home systems. This invention describes how the optical power can be measured at the two-downstream and one upstream wavelengths used to connect a residence or business customer, while maintaining the signal continuity necessary to keep the home-based Optical Network Terminal operating.  This invention underlies the two-port version of our PPM-350 series of PON power meters; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a method for determining the optical signal-to-noise ratio employing an optical spectrum analyzer, which is particularly advantageous for use with tightly-filtered DWDM signals used in high-bandwidth optical networks.  This invention is a key value-added option to our FTB-5240-S series of portable optical spectrum analyzers; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a method and apparatus to determine the theoretical and practical data rates for a cable under test. This invention forms the basis of the EXFO CableSHARK product, describing how two test devices, communicating with each other via the cable under test, can predict the performance of a pair of ADSL (Asymmetric Digital Subscriber Line) modems, and in case of problems, analyze the cause of the modems’ failure to synchronize; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a method and system for hardware time stamping packetized data to provide sub-microsecond accuracy in test measurements, which is embedded in the Brix100M, Brix1000, and Brix2500 Series Verifiers; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a method for actively analyzing a data packet delivery path to provide diagnostics and root cause analysis of network delivery path issues, which is embedded in BrixCall, BrixNGN, and BrixVision applications of EXFO Service Assurance; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a distributed protocol analyzer for quality-of-service measurement. This invention underlies the combined QoS measurements offered in the NetHawk iPro and NetHawk M5 products; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a communication methodology used to perform independent bi-directional protocol testing over a connection or connectionless network between two test instruments, wherein the transfer mechanism of status and intermediate test results during an active test and the transmission of the final results to one of the instruments enables the user to perform a bidirectional single-ended test. This invention is at the heart of the EXFO Datacom product families, including applications in conformity with our EtherSAM standard test suite. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| C. |  Organizational Structure |
|----|--------------------------------|

----

Table of Contents

| D. |  Property, Plants and Equipment |
|----|--------------------------------------|

| Location                                                  | Use of Space                                                                                           | SquareFootage                             | % ofUtilization  | Type ofInterest |
|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------|-------------------------------------------|------------------|-----------------|
| 436 Nolin StreetQuebec (Quebec)G1M 1E7               | Occupied for manufacturing of products                                                                 |  44,000                              |    50% | Owned           |
| 400 Godin AvenueQuebec (Quebec)G1M 2K2               | Occupied for research and development, customer services, manufacturing, management and administration |     129,000  (1) |    80% | Owned           |
| 2650 Marie-CurieSt-Laurent (Quebec)H4S 2C3      | Occupied for research and development, management and administration                                   |  26,000                              | 100%             | Leased          |
| 160 Drumlin CircleConcord (Ontario)L4K 3E5           | Occupied for research and development, product management and administration                           |  23,500                              |    60% | Owned           |
| 270 Billerica RoadChelmsford, MA 01824United States  | Occupied for research and development, manufacturing, management and administration                    |  29,000                              |    60% | Leased          |

----

Table of Contents

| Location                                                                                                                                          | Use of Space                                                                        | SquareFootage | % ofUtilization  | Type ofInterest |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|---------------|------------------|-----------------|
| Omega Enterprise ParkElectron Way, Chandlers FordEastleigh, HampshireS053 4SEUnited Kingdom                                                  | Occupied for European customer service, sales management and administration         |  10,000  |    90% | Leased          |
| 3rd Floor, Building 10,Yu Sheng Industrial Park(Gu Shu Crossing)No. 467, National Highway 107Xixiang, Bao An DistrictShenzhen 518126, China  | Occupied for manufacturing of telecom products                                      |  56,000  |    70% | Leased          |
| Offices No 602, 603, 604 and 702Tower S-4 CybercityMagarpatta , HadapsarPune 411 013India                                                    | Occupied for research and development                                               |  24,668  |    80% | Owned           |
| NetHawk Oyj (Headquarters)Elektroniikkatie 2FI-90590 Oulu, Finland                                                                           | Occupied for research and development, manufacturing, management and administration |  47,097  |    80% | Leased          |
| NetHawk Networks India Pvt. Ltd.5th floor, IDCO Tower 2000Mancheswar Industrial AreaBhubaneswar  751010, India                          | Occupied for research and development                                               |  25,239  |    90% | Leased          |

| (1)   | Including the warehouse space. Premises without the warehouse are approximately 115,000 square feet. |
|-----------------|------------------------------------------------------------------------------------------------------|

| Item 4A.   | Unresolved Staff Comments |
|----------------------|---------------------------|

----

Table of Contents

| Item 5.   | Operating and Financial Review and Prospects |
|---------------------|----------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ·   | Capitalize on bandwidth explosion in the telecom industry with the introduction of innovative, market-driven test and service assurance solutions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Focus on the convergence of IP fixed and mobile networks, including emerging technologies like 4G/LTE and high-speed Ethernet; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Leverage our leadership in optical testing for new opportunities like wireless backhaul, fiber- to-the-home, and 40G and 100G network upgrades; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Move up the IP networks value chain by leveraging the intelligence, or computing capacities, of our modular test platforms with our service assurance systems to develop a series of value-added solutions; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Accelerate profitability through globalization and execution. |
|--------------------|---------------------------------------------------------------|

----

Table of Contents

| o   | Increase sales by a CAGR* of at least 25% |
|---------------|-------------------------------------------|

| o   | Raise gross margin to 65% |
|---------------|---------------------------|

| o   | Increase adjusted EBITDA** in dollars by a CAGR of at least 30% |
|---------------|-----------------------------------------------------------------|

| * | Compound annual growth rate |
|---|-----------------------------|

| ** | EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets and impairment of goodwill. Adjusted EBITDA represents EBITDA excluding the gain from the disposal of discontinued operations. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Corporate Performance Objectives (Fiscal 2010-2012)           |
|---------------------------------------------------------------|
| Objectives                                                    | Metrics | Results After Two Years |
| Increase sales by a CAGR* of at least:                        | 25% | 25.4% |
| Raise gross margin from 61.3% to:                             | 65% | 62.7% |
| Increase adjusted EBITDA** in dollars by a CAGR* of at least: | 30% | 45.4% |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ·   | Diagnostic phase – This phase involves an initial scoping of significant accounting differences between Canadian GAAP and IFRS, a preliminary evaluation of IFRS 1 exemptions for first-time IFRS adopters, and a high-level assessment of potential consequences on financial reporting, business processes, internal controls and information systems. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Design and Solutions Development phase – This phase involves a detailed analysis of identified accounting treatment differences, reviewing and approving accounting policy choices, performing a detailed impact assessment and designing changes to systems and business processes, developing IFRS training material, and drafting IFRS financial statement content. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Implementation phase – This phase involves embedding changes to systems, business processes and internal controls, determining the opening IFRS transition balance sheet and tax impacts, parallel accounting under Canadian GAAP and IFRS, and preparing detailed reconciliations of Canadian GAAP to IFRS financial statements. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Post-Implementation phase – This phase involves conversion assessment, evaluating improvements for a sustainable operational IFRS model, and testing the internal controls environment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| a)   | Tax credits recoverable |
|----------------|-------------------------|

| b)   | Property, plant and equipment |
|----------------|-------------------------------|

| c)   | Business combinations |
|----------------|-----------------------|

----

Table of Contents

| d)   | Presentation of financial statements |
|----------------|--------------------------------------|

| e)   | Hedge accounting |
|----------------|------------------|

| f)   | Impairment of assets |
|----------------|----------------------|

| g)   | Leases |
|----------------|--------|

| h)   | Translation of foreign operations |
|----------------|-----------------------------------|

----

Table of Contents

|                          |   |   |   |   | As at September 1, 2010 |    |
|-------------------------------|--------|--------|--------|--------|-------------------------|---------|
|                          |   |   |   |   |                    |    |   |   |   |   |   |   |
|                          |   | Note   |   |   | Assets                  |    |   | Liabilities |   |   | Shareholders' equity |   |
| Under Canadian GAAP           |   |   |   |   | $                       | 273,502 |   |   | $ | 53,083 |   |   | $ | 220,419 |   |
|                          |   |   |   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Tax credits recoverable       |   |   | a)     |   |                    |    | (2,510 | ) |   |   | – |   |   |   | (2,510 | ) |
| Property, plant and equipment |   |   | b)     |   |                    |    | 1,275 |   |   |   | – |   |   |   | 1,275 |   |
| Deferred income taxes         |   |   | a), b) |   |                    |    | 333 |   |   |   | – |   |   |   | 333 |   |
| Cash contingent consideration |   |   | c)     |   |                    |    | – |   |   |   | 2,660 |   |   |   | (2,660 | ) |
|                          |   |   |   |   |                    |    | (902 | ) |   |   | 2,660 |   |   |   | (3,562 | ) |
| Under IFRS                    |   |   |   |   |                    | $       | 272,600 |   |   | $ | 55,743 |   |   | $ | 216,857 |   |

|                                                          |   |   |   |   | Year ended August 31, 2011 |   |
|---------------------------------------------------------------|--------|--------|--------|--------|----------------------------|--------|
|                                                          |   |   |   |   |                       |   |   |   |   |   |   |   |   |   |   |
|                                                          |   | Note   |   |   | Earnings from operations   |   |   | Netearnings |   |   | Basic net earningsper share |   |   | Diluted net earningsper share |   |
| Under Canadian GAAP                                           |   |   |   |   | $                          | 18,503 |   |   | $ | 19,349 |   |   | $ | 0.32 |   |   | $ | 0.31 |   |
|                                                          |   |   |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation of property, plant and equipment                 |   |   | b)     |   |                       |   | 117 |   |   |   | 117 |   |   |   |   |   |   |   |   |   |
| Change in the fair value of the cash contingent consideration |   |   | c)     |   |                       |   | 2,685 |   |   |   | 2,685 |   |   |   |   |   |   |   |   |   |
| Interest income                                               |   |   | a)     |   |                       |   | – |   |   |   | 227 |   |   |   |   |   |   |   |   |   |
| Deferred income taxes                                         |   |   | a), b) |   |                       |   | – |   |   |   | (93 | ) |   |   |   |   |   |   |   |   |
| Under IFRS                                                    |   |   |   |   |                       | $      | 21,305 |   |   | $ | 22,285 |   |   | $ | 0.37 |   |   | $ | 0.36 |   |

|                          |   |   |   |   | As at August 31, 2011 |    |
|-------------------------------|--------|--------|--------|--------|-----------------------|---------|
|                          |   |   |   |   |                  |    |   |   |   |   |   |   |
|                          |   | Note   |   |   | Assets                |    |   | Liabilities |   |   | Shareholders' equity |   |
| Under Canadian GAAP           |   |   |   |   | $                     | 321,086 |   |   | $ | 57,340 |   |   | $ | 263,746 |   |
|                          |   |   |   |   |                  |    |   |   |   |   |   |   |   |   |   |
| Tax credits recoverable       |   |   | a)     |   |                  |    | (2,507 | ) |   |   | – |   |   |   | (2,507 | ) |
| Property, plant and equipment |   |   | b)     |   |                  |    | 1,510 |   |   |   | – |   |   |   | 1,510 |   |
| Deferred income taxes         |   |   | a), b) |   |                  |    | 160 |   |   |   | (110 | ) |   |   | 270 |   |
| Cash contingent consideration |   |   | c)     |   |                  |    | – |   |   |   | 338 |   |   |   | (338 | ) |
|                          |   |   |   |   |                  |    | (837 | ) |   |   | 228 |   |   |   | (1,065 | ) |
| Under IFRS                    |   |   |   |   |                  | $       | 320,249 |   |   | $ | 57,568 |   |   | $ | 262,681 |   |

----

Table of Contents

| Consolidated statements of earnings data:                        |   | 2011   |    |   | 2010   |   |    | 2009   |   |   | 2011    |   |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
| Sales                                                            |   | $      | 269,743 |   |   | $      | 202,757 |   |   | $      | 153,082 |   |   |   | 100.0   | %      |   |   | 100.0 | % |   |   | 100.0 | % |
| Cost of sales (1)                                           |   |   | 100,296 |   |   |   | 73,901  |   |   |   | 57,897  |   |   |   | 37.2    |   |   |   | 36.4 |   |   |   | 37.8 |   |
| Gross margin                                                     |   |   | 169,447 |   |   |   | 128,856 |   |   |   | 95,185  |   |   |   | 62.8    |   |   |   | 63.6 |   |   |   | 62.2 |   |
| Operating expenses                                               |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Selling and administrative                                       |   |   | 87,062  |   |   |   | 66,612  |   |   |   | 58,067  |   |   |   | 32.3    |   |   |   | 32.9 |   |   |   | 37.9 |   |
| Net research and development                                     |   |   | 47,927  |   |   |   | 37,847  |   |   |   | 27,213  |   |   |   | 17.7    |   |   |   | 18.7 |   |   |   | 17.8 |   |
| Amortization of property, plant and equipment                    |   |   | 6,772   |   |   |   | 5,757   |   |   |   | 4,453   |   |   |   | 2.5     |   |   |   | 2.8 |   |   |   | 2.9 |   |
| Amortization of intangible assets                                |   |   | 9,183   |   |   |   | 7,773   |   |   |   | 5,033   |   |   |   | 3.4     |   |   |   | 3.8 |   |   |   | 3.3 |   |
| Restructuring charges                                            |   |   | – |   |   |   | – |   |   |   | 963     |   |   |   | – |   |   |   | – |   |   |   | 0.6 |   |
| Impairment of goodwill                                           |   |   | – |   |   |   | – |   |   |   | 21,713  |   |   |   | – |   |   |   | – |   |   |   | 14.2 |   |
| Total operating expenses                                         |   |   | 150,944 |   |   |   | 117,989 |   |   |   | 117,442 |   |   |   | 55.9    |   |   |   | 58.2 |   |   |   | 76.7 |   |
| Earnings (loss) from operations                                  |   |   | 18,503  |   |   |   | 10,867  |   |   |   | (22,257 | )      |   |   | 6.9     |   |   |   | 5.4 |   |   |   | (14.5 | ) |
| Interest and other income (expenses)                             |   |   | 511     |   |   |   | (292    | )      |   |   | 592     |   |   |   | 0.1     |   |   |   | (0.1 | ) |   |   | 0.4 |   |
| Foreign exchange gain (loss)                                     |   |   | (3,808  | )      |   |   | (1,496  | )      |   |   | 1,074   |   |   |   | (1.4    | )      |   |   | (0.8 | ) |   |   | 0.7 |   |
| Earnings (loss) before income taxes                              |   |   | 15,206  |   |   |   | 9,079   |   |   |   | (20,591 | )      |   |   | 5.6     |   |   |   | 4.5 |   |   |   | (13.4 | ) |
| Income taxes                                                     |   |   | 8,783   |   |   |   | 5,529   |   |   |   | 266     |   |   |   | 3.2     |   |   |   | 2.7 |   |   |   | 0.2 |   |
| Net earnings (loss) from continuing operations                   |   |   | 6,423   |   |   |   | 3,550   |   |   |   | (20,857 | )      |   |   | 2.4     | %      |   |   | 1.8 | % |   |   | (13.6 | ) % |
| Net earnings from discontinued operations                        |   |   | 12,926  |   |   |   | 3,069   |   |   |   | 4,272   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year                                 |   | $      | 19,349  |   |   | $      | 6,619   |   |   | $      | (16,585 | )      |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic net earnings (loss) from continuing operations per share   |   | $      | 0.11    |   |   | $      | 0.06    |   |   | $      | (0.34   | )      |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Diluted net earnings (loss) from continuing operations per share |   | $      | 0.10    |   |   | $      | 0.06    |   |   | $      | (0.34   | )      |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Basic net earnings (loss) per share                              |   | $      | 0.32    |   |   | $      | 0.11    |   |   | $      | (0.27   | )      |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Diluted net earnings (loss) per share                            |   | $      | 0.31    |   |   | $      | 0.11    |   |   | $      | (0.27   | )      |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Research and development data:                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Gross research and development                                   |   | $      | 57,226  |   |   | $      | 44,551  |   |   | $      | 33,584  |   |   |   | 21.2    | %      |   |   | 22.0 | % |   |   | 21.9 | % |
| Net research and development                                     |   | $      | 47,927  |   |   | $      | 37,847  |   |   | $      | 27,213  |   |   |   | 17.7    | %      |   |   | 18.7 | % |   |   | 17.8 | % |
|                                                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Consolidated balance sheets data:                                |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Total assets                                                     |   | $      | 321,086 |   |   | $      | 273,502 |   |   | $      | 240,371 |   |   |   |    |   |   |   |   |   |   |   |   |   |

| (1)   | The cost of sales is exclusive of amortization, shown separately. |
|-----------------|-------------------------------------------------------------------|

----

Table of Contents

|                                                                    |   | Year endedAugust 31, 2011 |    |   | Year endedAugust 31, 2010 |   |    | Changein $ |   |   | Changein % |   |
|-------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|------------|--------|--------|------------|--------|
|                                                                    |   |                                |    |   |                                |   |    |       |   |   |       |   |
| Sales                                                                   |   | $                                   | 269,743 |   |                                | $      | 202,757 |       |   | $      | 66,986     |   |   |   | 33.0 | % |
|                                                                    |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Gains on forward exchange contracts                                     |   |                                | (2,795  | )      |                                |   | (1,517  | )          |   |   | (1,278     | )      |   |   |   |   |
|                                                                    |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Sales, excluding gains on forward exchange contracts (non-GAAP measure) |   |                                | 266,948 |   |                                |   | 201,240 |       |   |   | 65,708     |   |   |   | 32.7 |   |
|                                                                    |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Impact of the recent acquisition (NetHawk)                              |   |                                | (29,652 | )      |                                |   | (14,483 | )          |   |   | (15,169    | )      |   |   |   |   |
|                                                                    |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Organic sales (non-GAAP measure)                                        |   | $                                   | 237,296 |   |                                | $      | 186,757 |       |   | $      | 50,539     |   |   |   | 27.1 | % |

|                                                                    |   | Year endedAugust 31, 2011 |    |   | Year endedAugust 31, 2010 |   |    | Change in % |   |
|-------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|-------------|--------|
|                                                                    |   |                                |    |   |                                |   |    |        |   |
| Optical test solutions                                                  |   | $                                   | 139,525 |   |                                | $      | 109,124 |        |   |   | 27.9 | % |
| Protocol test solutions                                                 |   |                                | 108,946 |   |                                |   | 78,709  |        |   |   | 38.4 |   |
| Copper -access test solutions                                           |   |                                | 18,477  |   |                                |   | 13,407  |        |   |   | 37.8 |   |
|                                                                    |   |                                |    |   |                                |   |    |        |   |   |   |   |
| Sales, excluding gains on forward exchange contracts (non-GAAP measure) |   | $                                   | 266,948 |   |                                | $      | 201,240 |        |   |   | 32.7 | % |

----

Table of Contents

|                                                                           |   | Year endedAugust 31, 2010 |    |   | Year endedAugust 31, 2009 |   |    | Changein $ |   |   | Changein % |   |
|--------------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|------------|--------|--------|------------|--------|
|                                                                           |   |                                |    |   |                                |   |    |       |   |   |       |   |
| Sales                                                                          |   | $                                   | 202,757 |   |                                | $      | 153,082 |       |   | $      | 49,675     |   |   |   | 32.4 | % |
|                                                                           |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| (Gains) losses on forward exchange contracts                                   |   |                                | (1,517  | )      |                                |   | 3,178   |       |   |   | (4,695     | )      |   |   |   |   |
|                                                                           |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Sales, excluding gains/losses on forward exchange contracts (non-GAAP measure) |   |                                | 201,240 |   |                                |   | 156,260 |       |   |   | 44,980     |   |   |   | 28.8 |   |
|                                                                           |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Impact of the recent acquisition (NetHawk)                                     |   |                                | (14,483 | )      |                                |   | – |       |   |   | (14,483    | )      |   |   |   |   |
|                                                                           |   |                                |    |   |                                |   |    |       |   |   |       |   |   |   |   |   |
| Organic sales (non-GAAP measure)                                               |   | $                                   | 186,757 |   |                                | $      | 156,260 |       |   | $      | 30,497     |   |   |   | 19.5 | % |

|                                                                    |   | Year endedAugust 31, 2010 |    |   | Year endedAugust 31, 2009 |   |    | Change in % |   |
|-------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|-------------|--------|
|                                                                    |   |                                |    |   |                                |   |    |        |   |
| Optical test solutions                                                  |   | $                                   | 109,124 |   |                                | $      | 95,532  |        |   |   | 14.2 | % |
| Protocol test solutions                                                 |   |                                | 78,709  |   |                                |   | 54,929  |        |   |   | 43.3 |   |
| Copper -access test solutions                                           |   |                                | 13,407  |   |                                |   | 5,799   |        |   |   | 131.2 |   |
|                                                                    |   |                                |    |   |                                |   |    |        |   |   |   |   |
| Sales, excluding gains on forward exchange contracts (non-GAAP measure) |   | $                                   | 201,240 |   |                                | $      | 156,260 |        |   |   | 28.8 | % |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| Expiry dates                  |   | Contractualamounts |       |   | Weighted average contractualforward rates |   |
|-------------------------------|--------|--------------------|------------|--------|-----------------------------------------------------|--------|
|                          |   |               |       |   |                                                |   |
| September 2011 to August 2012 |   | $                  | 27,500,000 |   |                                                |   | 1.0555 |   |
| September 2012 to July 2013   |   |               | 11,400,000 |   |                                                |   | 1.0063 |   |
| Total                         |   | $                  | 38,900,000 |   |                                                |   | 1.0411 |   |

----

Table of Contents

----

Table of Contents

| * | EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets and impairment of goodwill. Adjusted EBITDA represents EBITDA excluding the gain from the disposal of discontinued operations. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                           |   | Year endedAugust 31, 2011 |    |   | Year endedAugust 31, 2010 |   |    | Year endedAugust 31, 2009 |   |
|------------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|-------------------------------------|--------|
|                                           |   |                                |    |   |                                |   |    |                                |   |
| GAAP net earnings (loss) for the year          |   | $                                   | 19,349  |   |                                | $      | 6,619   |                                |   | $ | (16,585 | ) |
|                                           |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Add (deduct):                                  |   |                                |    |   |                                |   |    |                                |   |   |   |   |
|                                           |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Amortization of property, plant and equipment  |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Continuing operations                          |   |                                | 6,772   |   |                                |   | 5,757   |                                |   |   | 4,453 |   |
| Discontinued operations                        |   |                                | 14      |   |                                |   | 154     |                                |   |   | 154 |   |
| Amortization of intangible assets              |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Continuing operations                          |   |                                | 9,183   |   |                                |   | 7,773   |                                |   |   | 5,033 |   |
| Discontinued operations                        |   |                                | 4       |   |                                |   | 45      |                                |   |   | 34 |   |
| Interest and other income (expenses)           |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Continuing operations                          |   |                                | (511    | )      |                                |   | 292     |                                |   |   | (592 | ) |
| Discontinued operations                        |   |                                | – |   |                                |   | 1       |                                |   |   | (5 | ) |
| Income taxes                                   |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Continuing operations                          |   |                                | 8,783   |   |                                |   | 5,529   |                                |   |   | 266 |   |
| Discontinued operations                        |   |                                | 201     |   |                                |   | 1,136   |                                |   |   | (5 | ) |
| Impairment of goodwill (continuing operations) |   |                                | – |   |                                |   | – |                                |   |   | 21,713 |   |
|                                           |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| EBITDA for the year                            |   |                                | 43,795  |   |                                |   | 27,306  |                                |   |   | 14,466 |   |
| Gain on disposal of discontinued operations    |   |                                | (13,212 | )      |                                |   | – |                                |   |   | – |   |
| Adjusted EBITDA for the year                   |   | $                                   | 30,583  |   |                                | $      | 27,306  |                                |   | $ | 14,466 |   |
|                                           |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Adjusted EDITDA in percentage of total sales   |   |                                | 11.3    | %      |                                |   | 12.0    | %                                   |   |   | 8.4 | % |

----

Table of Contents

|                               |   | Year endedAugust 31, 2011 |    |   | Year endedAugust 31, 2010 |   |    | Year endedAugust 31, 2009 |   |
|------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|-------------------------------------|--------|
|                               |   |                                |    |   |                                |   |    |                                |   |
| Sales from continued operations    |   | $                                   | 269,743 |   |                                | $      | 202,757 |                                |   | $ | 153,082 |   |
| Sales from discontinued operations |   |                                | 1,991   |   |                                |   | 25,359  |                                |   |   | 19,796 |   |
|                               |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Total sales                        |   | $                                   | 271,734 |   |                                | $      | 228,116 |                                |   | $ | 172,878 |   |

|                                      |   | Year endedAugust 31, 2011 |    |   | Year endedAugust 31, 2010 |   |    | Year endedAugust 31, 2009 |   |
|-------------------------------------------|--------|-------------------------------------|---------|--------|-------------------------------------|--------|---------|-------------------------------------|--------|
|                                      |   |                                |    |   |                                |   |    |                                |   |
| Gross margin from continued operations    |   | $                                   | 169,447 |   |                                | $      | 128,856 |                                |   | $ | 95,185 |   |
| Gross margin from discontinued operations |   |                                | 989     |   |                                |   | 13,563  |                                |   |   | 10,801 |   |
|                                      |   |                                |    |   |                                |   |    |                                |   |   |   |   |
| Total gross margin                        |   | $                                   | 170,436 |   |                                | $      | 142,419 |                                |   | $ | 105,986 |   |

----

Table of Contents

| Item 6.   | Directors, Senior Management and Employees |
|---------------------|--------------------------------------------|

|  A. |  Directors and Senior Management |
|----------|---------------------------------------|

| Name and Municipality of Residence                   |   | Positions with EXFO                                           |
|------------------------------------------------------|--------|---------------------------------------------------------------|
| PIERRE-PAUL ALLARDPleasanton, California             |   | Independent Director                                          |
| JON BRADLEYWorminghall, United Kingdom               |   | Vice-President, Sales — EMEA                            |
| STEPHEN BULLQuebec City, Quebec                      |   | Vice-President, Research and Development                      |
| NORMAND DUROCHERSt-Sauveur, Quebec                   |   | Vice-President, Human Resources                               |
| DARRYL EDWARDSWeston Under Wetherley, United Kingdom |   | Independent Director                                          |
| ÉTIENNE GAGNONQuebec City, Quebec               |   | Vice-President, Wireline Division and Corporate Marketing     |
| LUC GAGNONSt-Augustin-de-Desmaures, Quebec           |   | Vice-President, Manufacturing Operations and Customer Service |
| VIVIAN HUDSONBeaconsfield, Quebec                    |   | Vice-President, Service Assurance Division                    |
| JOHN J. JONES, IVHong Kong, China                    |   | Vice-President, Sales — APAC                            |
| GERMAIN LAMONDESt-Augustin-de-Desmaures, Quebec      |   | Chairman of the Board, President and Chief Executive Officer  |
| PIERRE MARCOUILLERMagog, Quebec                      |   | Independent Lead Director                                     |
| GUY MARIERLakefield Gore, Quebec                     |   | Independent Director                                          |
| MATTI PALOMÄKIKauniainen, Finland               |   | Vice-President, Wireless Division                             |
| PIERRE PLAMONDONQuebec City, Quebec                  |   | Vice-President, Finance and Chief Financial Officer           |
| BENOIT RINGUETTEBoischatel, Quebec                   |   | General Counsel and Corporate Secretary                       |
| SUSAN SPRADLEYDallas, Texas                          |   | Independent Director                                          |
| DAVID A. THOMPSONNewton, North Carolina              |   | Independent Director                                          |
| DANA YEARIANLake Forest, Illinois                    |   | Vice-President, Sales — Americas                        |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|  B. |  Compensation |
|----------|--------------------|

| ·   | Mr. Guy Marier (Chairman) |
|--------------------|-------------------------------------|

| ·   | Mr. Pierre-Paul Allard |
|--------------------|------------------------|

| ·   | Mr. Pierre Marcouiller |
|--------------------|------------------------|

| ·   | Mr. David A. Thompson |
|--------------------|----------------------------|

| ·   | Mr. André Tremblay (until January 20, 2011) |
|--------------------|--------------------------------------------------|

----

Table of Contents

| Meeting                 | Main activities of the Human Resources Committee                                                                    |
|-------------------------|---------------------------------------------------------------------------------------------------------------------|
|   October 12, 2010 | ●●● ● ● ● ●●●●●●● | Review and approval of the Short-Term Incentive Plan for the financial year started September 1, 2010;Review of the proposed salary scales and salary increases for the year started September 1, 2010;Review and approval of the compensation plans of executive officers for the financial year started September 1, 2010 being the Base Salary, the Short-Term Incentive Plan and the stock-based compensation delivered through the Long-Term Incentive Plan;Review and approval of the stock-based compensation plan for the sales force delivered through the Long-Term Incentive Plan for the financial year started September 1, 2010;Review and approval of the quantum for the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2010;Review and approval of the executive compensation section of the management proxy circular for the financial year ended August 31, 2010 during a Board of Directors meeting;Review of the succession planning program;Review of the Management Improvement Performance Program;Review of the Mobilization / Motivation Plan;Human Resources Integration Plan following acquisition;Review of the sales forces achievement and percentage of commissions;Review of a coaching program for the CEO;Selection of new Board Members. |
|   January 12, 2011 | ● ● ●●●●●●●                                         | Review of the quarterly payments under the Short-Term Incentive Plan for the financial year started September 1, 2010 and being part of the Short-Term Incentive Plan;Review and approval of the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2010;Review and approval of the CEO objectives;Review of the Mobilization / Motivation Plan;Review of the Management Improvement Performance Program;Review of the sales forces commissions plans;Review of a coaching program for the CEO;Selection of new Board Members;Review of the succession planning program. |

----

Table of Contents

| Meeting                 | Main activities of the Human Resources Committee                                                             |
|-------------------------|--------------------------------------------------------------------------------------------------------------|
|   March 31, 2011   | ● ●●●●●                                                             | Review of the quarterly payments under the Short-Term Incentive Plan for the financial year started September 1, 2010 and being part of the Short-Term Incentive Plan;Review and approval of the stock-based compensation delivered through the Long-Term Incentive Plan;Review of benchmarks for our sales forces;Review of a coaching program for the CEO;Selection of new Board Members;Review of the succession planning program. |
|   June 28, 2011    | ● ●●                                                                                  | Review of the quarterly payments under the Short-Term Incentive Plan for the financial year started September 1, 2010 and being part of the Short-Term Incentive Plan;Selection of new Board Members;Determination by the Members of their respective DSU percentage of their Annual Retainer. |
|   October 11, 2011 | ●●● ● ● ● ●●●●●● | Review and approval of the Short-Term Incentive Plan for the financial year started September 1, 2011;Review of the proposed salary scales and salary increases for the year started September 1, 2011;Review and approval of the compensation plans of executive officers for the financial year started September 1, 2011 being the Base Salary, the Short-Term Incentive Plan and the stock-based compensation delivered through the Long-Term Incentive Plan;Review and approval of the stock-based compensation plan for the sales force delivered through the Long-Term Incentive Plan for the financial year started September 1, 2011;Review and approval of the quantum for the stock-based compensation plan for the performing employees delivered through the Long-Term Incentive Plan for the financial year started September 1, 2011;Review and approval of the executive compensation section of the management proxy circular for the financial year ended August 31, 2011 during a Board of Directors meeting;Review of the succession planning program;Review of the Mobilization / Motivation Plan;Review of a coaching program for the CEO;Review and approval of the CEO objectives;Review of the 2012 Executive compensation disclosure obligations;Review of the Management Improvement Performance Program. |

----

Table of Contents

|   Type of Fee                                                        | Financial 2011 Fees   | Percentage of Financial 2011 Fees |
|---------------------------------------------------------------------------|-----------------------|-----------------------------------|
|   Fees for Board of Directors and Human Resources Committee mandates |    CA$7,035 |   43%                   |
|   Fees for other Corporation mandates                                |    CA$9,245 |   57%                   |
|   Total                                                              |  CA$16,280       |  100%                        |

----

Table of Contents

| (1)   | 2009 Mercer Benchmark Database, which contains compensation data for selected Canadian companies with median annual revenues of CA$325 million. The following is a list of the main companies, with a particular emphasis on the High-Technology/Telecommunications and Manufacturing-Durable Goods Industries, servicing industries, revenue categories and geography, used for the purposes of setting 2010 compensation: Arcan Resources Ltd.; Linamar Corporation; Arsenal Energy Inc.; Livingston International; Baytex Energy Trust; Logistec Corporation; Canadian Hydro Developers Inc.; MacDonald, Dettwiler and Associates Corporation – Quebec; Canadian Pacific; Pason Systems Inc.; CE Franklin Ltd.; Precision Drilling Trust; Centerra Gold Inc.; RDM Corporation; Compton Petroleum Corporation; SNC-Lavalin; Computer Modelling Group Ltd.; Softchoice Corp.; Crew Energy Inc.; Stantec Inc.; Enerflex Systems Ltd.; Teck Resources Limited; Labopharm Inc.; TeraGo Networks Inc.; Velan Inc. Mercer can only disclose the identities of the publicly-traded participating organizations due to confidentiality covenants with survey participants; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | 2009 US Mercer Benchmark Database (2,771 participants); and |
|-----------------|-------------------------------------------------------------|

| (3)   | 2009 UK Mercer Benchmark Database (193 participants), which contains compensation data for companies in all industries of all sizes and scopes. Focuses on companies with revenues lower than CA$500 million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Performance-based: Executive compensation levels reflect both the results of the Corporation and individual results based on specific quantitative and qualitative objectives established at the beginning of each financial year in keeping with the Corporation’s long-term strategic objectives. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Aligned with shareholder interests: An important portion of incentive compensation for executives is composed of equity awards to ensure that executives are aligned with the principles of sustained long-term shareholder value growth. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Market competitive: Compensation of executives is designed to be externally competitive when compared against executives of comparable peer companies, and in consideration of the Corporation’s results. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Individually equitable: Compensation levels are also designed to reflect individual factors such as scope of responsibility, experience, and performance against individual measures. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Name & Position                                                          | Annual incentivetarget as % ofbase salary | Business Performance                                                                                                                        | IndividualPerformanceMultiplier (2) |
|------------------------------------------------------------------------------|-------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|
| Measure                                                                      | Weight                                    | Multiplier (1)                                                                                                                              |
|   Germain Lamonde, CEO                                                  | 60%                                       |  Ÿ SalesŸ EBITDAŸ Gross marginŸ Customer satisfaction (3)                                                     | Telecom35%20%20%25%Total: 100%      | 0% to 150% | 0% to 125% |
|   Pierre Plamondon, CFO                                                 | 37.5%                                     |
|   Vivian Hudson,  Vice-President, Service  Assurance Division | 32.5%                                     |
|   Jon Bradley,  Vice-President, Sales-  EMEA                  | 66.7%                                     | Ÿ Revenue target (4)Ÿ Margin target (5)Ÿ Contribution Margin (6)Ÿ Personal objectives (7)Ÿ Specific Incentives (8) | 45%30%15%5%5%                       | – |
|   Dana Yearian,  Vice-President, Sales-  Americas             | 66.7%                                     |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|
|   |   |   |   |   |

| (1)   | For sales, EBITDA and gross margin metrics, NEO begins to be compensated upon attainment of 50% of the target objective and up to the attainment of 150% of the target objective. For customer satisfaction metric, NEO’s compensation is pro-rated from a minimal threshold up to the attainment of 150% of the target objective. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The personal objectives of each NEO are based on the position and role he or she has with the Corporation. Such personal objectives are based mostly on the attainment of departmental objectives and the others objectives are based on the attainment of personal management objectives all of which attainments are determined by an evaluation of the individual’s supervisor or the Human Resources Committee, as the case may be. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes on time delivery and quality. |
|-----------------|----------------------------------------|

| (4)   | The compensation rate for the attainment of revenue targets (billings) is equal to the total billings potential amount of commission on the total billings quotas defined at the beginning of the financial year. A lower rate is applied for less than 70% of the attainment of the objective. The regular rate is applied from 70% to 100% of the attainment of the objective. An accelerator is applied after 100%. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The commission rate for the attainment of the margin targets is equal to the total margins potential amount of incentives on the total margins quotas defined at the beginning of the financial year. This rate is used for all margins up to 100% attainment of the objective and an accelerator is applied after 100% attainment of the objective. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (6)   | The commission rate for the attainment of the contribution margin targets is equal to the total margins potential amount of incentives on the contribution margins objectives defined at the beginning of the financial year. This rate is used for all margins up to 100% attainment of the objective and an accelerator is applied after 100% attainment of the objective. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | The compensation for personal objectives is a maximum amount based on the quarterly achievement of the sales bookings target for their specific territory. It is pro-rated between 70% and 100% achievement and no compensation will be attributed to this element if less than 70% of the objective is attained. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Additional bonuses are also available, one being based on revenues and integration of recent acquisitions and the other on the implementation of the Corporation development program. Accordingly, a total sales achievement figure target of recent acquisitions and a commission rate are determined at the beginning of the financial year. The commission rate is applied when total sales achievement figure of recent acquisitions reaches 50% of the target. Another portion of these additional bonuses is based on the result of the implementation of an integration plan following an acquisition. The compensation for the attainment of the implementation of an integration plan following an acquisition target is a maximum amount based on the achievement of such target and is pro-rated up to 100% achievement. The Corporation development program implementation target is determined at the beginning of the financial year. The compensation for the attainment of the Corporation development program target is a maximum amount based on the achievement of such target and is pro-rated up to 100% achievement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Long-Term Incentive Plan |
|--------------------|--------------------------|

| Positions               | Grant Levels (1)  (% of base salary) |
|-------------------------|------------------------------------------------|
|    CEO        | 70%                                            |
|    Other NEOs | 32.5% - 35%                                    |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|
|   |   |   |   |   |

| (1)   | Actual grant value may differ from the grant level guidelines as the stock price may vary between the time of the grant and its approval. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

| Financialyear ended | Grant Date       | RSUsgranted(#) | Fair Value at theTime of Grant(US$/RSU)                                                                                                                                                                                                                                                                                                                                                                 | Vesting schedule                           |
|---------------------|------------------|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| August 31, 2011     | October 19, 2010 | 30,250         | 6.03                                                                                                                                                                                                                                                                                                                                                                                                    | 50% after 3 and 4 years of the grant date. |
| January 19, 2011    | 119,900          | 9.32           |
| April 7, 2011       | 7,297            | 8.28           |
| April 18, 2011      | 8,226            | 8.64           |
| October 19, 2010    | 56,361           | 6.03           | 100% on the fifth anniversary date of the grant subject to early vesting up to 100% on the third or fourth anniversary of the grant when performance objectives related to revenue, as determined by the Board of Directors of the Corporation are fully attained.                                                                                                                                      |
| October 19, 2010    | 128,348          | 6.03           | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. |
| August 31, 2010     | October 20, 2009 | 36,500         | 3.74                                                                                                                                                                                                                                                                                                                                                                                                    | 50% after 3 and 4 years of the grant date. |
| January 19, 2010    | 130,000          | 5.13           |
| April 7, 2010       | 37,900           | 5.68           |
| April 7, 2010       | 6,155            | 5.68           | 1/3 on the third, fourth and fifth anniversary date of the grant.                                                                                                                                                                                                                                                                                                                                       |
| July 7, 2010        | 3,759            | 5.32           |
| October 20, 2009    | 174,686          | 3.74           | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. |
| April 7, 2010       | 7,575            | 5.68           |
| July 7, 2010        | 18,963           | 5.32           |
| August 31, 2009     | October 22, 2008 | 71,003         | 2.36                                                                                                                                                                                                                                                                                                                                                                                                    | 50% after 3 and 4 years of the grant date. |
| January 20, 2009    | 243,700          | 3.22           |
| April 7, 2009       | 11,000           | 3.52           |
| July 8, 2009        | 3,000            | 2.99           | 100% after 3 years of the grant date.                                                                                                                                                                                                                                                                                                                                                                   |
| January 20, 2009    | 5,000            | 3.22           | 1/3 on the third, fourth and fifth anniversary date of the grant.                                                                                                                                                                                                                                                                                                                                       |
| October 22, 2008    | 216,685          | 2.36           | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. |
| October 22, 2008    | 135,584          | 2.36           | 100% after 3 years of the grant if performance is achieved (long-term growth of revenue and profitability). Otherwise 100% vested after 5 years of the grant date.                                                                                                                                                                                                                                 |
| August 31, 2008     | October 23, 2007 | 29,000         | 6.28                                                                                                                                                                                                                                                                                                                                                                                                    | 50% after 3 and 4 years of the grant date. |
| January 15, 2008    | 76,200           | 4.16           |
| April 8, 2008       | 21,600           | 6.09           |
| April 22, 2008      | 185,570          | 5.82           |
| July 7, 2008        | 71,310           | 4.39           |
| October 23, 2007    | 86,167           | 6.28           | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. |

----

Table of Contents

| Financialyear ended | Grant Date | RSUsgranted(#) | Fair Value at theTime of Grant(US$/RSU) | Vesting schedule |
|---------------------|------------|----------------|-----------------------------------------|------------------|

| August 31, 2007    | September 29, 2006 | 1,200 | 5.83                                                                                                                                                                                                                                                                                                                                                                                                    | 50% after 3 and 4 years of the grant date. |
|--------------------|--------------------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| January 19, 2007   | 34,250             | 6.42  |
| January 26, 2007   | 60,200             | 7.32  |
| July 5, 2007       | 2,000              | 7.14  |
| September 11, 2006 | 2,000              | 5.38  | 1/3 on the third, fourth and fifth anniversary date of the grant.                                                                                                                                                                                                                                                                                                                                       |
| October 25, 2006   | 25,000             | 6.02  |
| January 19, 2007   | 22,550             | 6.42  |
| October 25, 2006   | 71,802             | 6.02  | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. |

| ·   | Restricted Share Unit Grants in Last Financial Year |
|--------------------|-----------------------------------------------------|

----

Table of Contents

| Name             | RSUsGranted(#) | Percentage of TotalRSUs Granted toEmployees inFinancial Year (%) (1) | Fair Valueat the Timeof Grant(US$/RSU) | Grant Date                                                                                                                                                                                                                                                                                      | Vesting schedule (2)                                                                                                                                                                                                                                                                                                                                                                                                            |
|------------------|----------------|----------------------------------------------------------------------|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Germain Lamonde  | 45,089         | 12.87%                                                               | 6.03                                   | October 19, 2010                                                                                                                                                                                                                                                                                | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (3) |
| Pierre Plamondon | 13,019         | 3.72%                                                                | 6.03                                   | October 19, 2010                                                                                                                                                                                                                                                                                | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (3) |
| 8,857            | 2.53%          | 6.03                                                                 | October 19, 2010                       | 100% on the fifth anniversary date of the grant subject to early vesting up to 100% on the third or fourth anniversary date of the grant when performance objectives related to revenue, as determined by the Board of Directors of the Corporation are fully attained. (4) |
| Jon Bradley      | 8,443          | 2.41%                                                                | 6.03                                   | October 19, 2010                                                                                                                                                                                                                                                                                | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (3) |
| 8,857            | 2.53%          | 6.03                                                                 | October 19, 2010                       | 100% on the fifth anniversary date of the grant subject to early vesting up to 100% on the third or fourth anniversary date of the grant when performance objectives related to revenue, as determined by the Board of Directors of the Corporation are fully attained. (4) |
| Vivian Hudson    | 10,252         | 2.93%                                                                | 6.03                                   | October 19, 2010                                                                                                                                                                                                                                                                                | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (3) |
| 11,272           | 3.22%          | 6.03                                                                 | October 19, 2010                       | 100% on the fifth anniversary date of the grant subject to early vesting up to 100% on the third or fourth anniversary date of the grant when performance objectives related to revenue as determined by the Board of Directors of the Corporation are fully attained. (4)       |
| 6,297            | 1.80%          | 8.28                                                                 | April 7, 2011                          | 50% on the third and fourth anniversary date of the grant.                                                                                                                                                                                                                                      |

----

Table of Contents

| Name | RSUsGranted(#) | Percentage of TotalRSUs Granted toEmployees inFinancial Year (%) (1) | Fair Valueat the Timeof Grant(US$/RSU) | Grant Date | Vesting schedule (2) |
|------|----------------|----------------------------------------------------------------------|----------------------------------------|------------|----------------------|

| Dana Yearian | 11,609 | 3.31% | 6.03             | October 19, 2010                                                                                                                                                                                                                                                                                | 100% on the fifth anniversary date of the grant subject to early vesting up to 1/3 on the third anniversary date of the grant and up to 50% of the remaining units on the fourth anniversary date of the grant if performance objectives namely related to long-term growth of revenue and profitability, as determined by the Board of Directors of the Corporation are fully attained. (3) |
|--------------|--------|-------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8,857        | 2.53%  | 6.03  | October 19, 2010 | 100% on the fifth anniversary date of the grant subject to early vesting up to 100% on the third or fourth anniversary date of the grant when performance objectives related to revenue, as determined by the Board of Directors of the Corporation are fully attained. (4) |

|   |   |   |
|--------|--------|--------|
|   |   |   |

| (1)   | Such percentage does not include any cancelled RSUs. |
|-----------------|------------------------------------------------------|

| (2)   | All RSUs first vesting cannot be earlier than the third anniversary date of their grant. |
|-----------------|------------------------------------------------------------------------------------------|

| (3)   | Those RSUs granted in the financial year ended August 31, 2011 vest on the fifth anniversary date of the grant but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives, as determined by the Board of Directors of the Corporation. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. The early vesting shall be subject to the attainment of performance objectives. Such performance objectives are based on the attainment of a sales growth metric combined with a profitability metric. The sales growth metric is determined according to the Compound Annual Growth Rate (CAGR) of the sales of the Corporation (SALES CAGR). The profitability metric is determined according to the Compound Annual Growth Rate (CAGR) of the Corporation’s net earnings before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain (EBITDA) (EBITDA CAGR). Accordingly, the first early vesting performance objectives will be attained, calculated on a pro-rated basis as follows: i) 100% for a SALES CAGR of 20% or more and 0% for a SALES CAGR of 5% or less for the three-year period ending on August 31, 2013, cumulated with ii) 100% for an EBITDA CAGR of the highest of a) 20% or b) the SALES CAGR for the three-year period ending on August 31, 2013 and 0% for an EBITDA CAGR of 10% or less for the three-year period ending on August 31, 2013. The second early vesting performance objectives will be attained on the same premises as described above but for the four-year period ending on August 31, 2014. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Those RSUs granted in the financial year ended August 31, 2011 vest on the fifth anniversary date of the grant but are subject to early vesting on the third or fourth anniversary date of the grant on the attainment of performance objectives, as determined by the Board of Directors of the Corporation. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 100% of the units on the third anniversary date of the grant or, if not attained, the second early vesting is up to 100% of the units on the fourth anniversary date of the grant. The early vesting shall be subject to the attainment of performance objectives. Such performance objectives are based on the attainment of a sales metric in any fiscal year period following the date of the grant. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                          |  Number of RSUs (#)                                             | % of Issued andOutstanding RSUs | Weighted Average Fair Value atthe Time of Grant ($US/RSU) |
|---------------------------------------------------------------|----------------------------------------------------------------------|---------------------------------|-----------------------------------------------------------|
|   President and CEO (one individual)                     |  222,899                                                        |  14.37%                    |  4.31                                                |
|   Board of Directors (four individuals) (1)              |            – |     –      |      –                          |
|   Management and Corporate Officers (eleven individuals) |  597,127                                                        |  38.48%                    |  4.18                                                |

|   |   |   |   |
|--------|--------|--------|--------|
|   |   |   |   |

| (1)   | Five individuals from September 1, 2010 until January 20, 2011. |
|-----------------|-----------------------------------------------------------------|

----

Table of Contents

|                                                        | Number ofOptions (#) | % of Issued andOutstanding Options | Weighted Average ExercisePrice ($US/Security) |
|-------------------------------------------------------------|----------------------|------------------------------------|-----------------------------------------------|
|   President and CEO (one individual)                   |  149,160        |  23.26%                       |  5.71                                    |
|   Board of Directors (three individuals)               |    44,003  |    6.86%                 |  6.34                                    |
|   Management and Corporate Officers (four individuals) |    74,494  |  11.62%                       |  6.84                                    |

| ·   | Deferred Share Unit Plan |
|--------------------|--------------------------|

| ·   | Deferred Share Unit Grants in Last Financial Year |
|--------------------|---------------------------------------------------|

| DSUs # | Weighted Average Fair Valueat the Time of Grant (US$/DSU) | Total of the Fair Value at the Timeof Grant (US$) | Vesting                                                                                                         |
|--------|-----------------------------------------------------------|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
| 12,786 | 7.87                                                      | 100,688                                           |   At the time director ceases to be a member of the Board   of Directors of the Corporation |

|                                  | Number of DSUs (#) | % of Issued andOutstanding DSUs | Total of the Fair Value atthe Time of Grant (US$) | Weighted Average Fair Valueat the Time of Grant (US$/DSU) |
|---------------------------------------|--------------------|---------------------------------|---------------------------------------------------|-----------------------------------------------------------|
| Board of Directors (four individuals) | 110,298            | 100%                            | 545,302                                           | 4.94                                                      |

----

Table of Contents

| ·   | Number of Subordinate Voting Shares reserved for future issuance |
|--------------------|------------------------------------------------------------------|

| ·   | Stock Appreciation Rights Plan |
|--------------------|--------------------------------|

----

Table of Contents

| Number of SARs exercised | Aggregate Value Realized (US$) (1) |
|--------------------------|------------------------------------|
| 14,750                   | 56,069                             |

|   |   |
|--------|--------|
|   |   |

| (1)   | The aggregate value realized is equivalent to the market value of the securities underlying the SARs at exercise. This value, as the case maybe, has been converted from Canadian dollars to U.S. dollars based on the noon buying rate of the Bank of Canada on the day of exercise. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 2011 Performance Indicators | Corporation’s Performance |
|-----------------------------|---------------------------------|

|     Short-Term Incentive Plan (STIP) | Telecom (% of achievement) |
|-----------------------------------------------------|----------------------------|

|    Financial      · Sales      · EBITDA        · Gross margin |     85%   98%   65% |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|
|    Customer Satisfaction      · Quality        · On-time delivery                                     |   102%   61%                            |
| Sales Vice-Presidents· Revenue (billings)· Margins (quotas)· Contribution Margins                                                                                      |     83%   95%   87%      |
|     Long-Term Incentive Plan (LTIP) - RSUs                                                                                                                                       |                                                        |
| Date of Grant                                                                                                                                                                                   | Vesting Date                                                | % of early vesting achievement (1) |
| October 23, 2007                                                                                                                                                                                | October 24, 2011                                            | 50% |
| October 22, 2008                                                                                                                                                                                | October 24, 2011                                            | 96% |
| October 22, 2008                                                                                                                                                                                | October 24, 2011                                            |   0% |

|   |   |   |
|--------|--------|--------|
|   |   |   |

| (1)   | The vesting schedules are provided in the table under the heading “Long-Term Incentive Plan”. |
|-----------------|-----------------------------------------------------------------------------------------------------------|

|   Compensation Elements                             | 2011                                                                                                                                                                                                | 2010                                                                                                                                                                                                                 | 2009                                                                                                                                                                                                     | 3-Year Total                                                                                                                                                                                                  |   |
|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   Cash                                              |                                                                                                                                                                                                |
|   Base Salary                                       |                CA$420,000                                                                                                     |                  CA$400,000                                                                                                          |               CA$371,000                                                                                                                |             CA$1,191,000                                                                                                                               |   |
|   Short-term incentive                              |                CA$216,626                                                                                                     |                  CA$257,127                                                                                                               |               CA$159,452                                                                                                                |                CA$633,205                                                                                                               |   |
|   Equity                                            |                                                                                                                                                                                                |
|   Long-term incentive                               |                CA$280,003 (1)                                                                                            |                  CA$259,698  (1)                                                                                                |               CA$192,499  (1)                                                                                                      |                CA$732,200 (1)                                                                                                      |   |
|   Total Direct Compensation                         |                CA$916,629                                                                                                     |                  CA$916,825                                                                                                          |               CA$722,951                                                                                                                |             CA$2,556,405                                                                                                                          |   |
|   Pension Value                                     |                                  – |                                    – |                                  –      |                                  – |   |
|   All Other Compensation                            |                                  – |                                    –      |                                  –      |                                  –      |   |
|   Total Compensation                                |                CA$916,629                                                                                                     |                  CA$916,825                                                                                                          |               CA$722,951                                                                                                                |             CA$2,556,405                                                                                                                               |   |
|   Annual Average                                    |                                  – |                                    –      |                                  – |                CA$852,135                                                                                                          |   |
|   Total Market Capitalization Growth (CA$ millions) |                             40.8                             |                              156.2  (2)                             |                        (106.0)  (2)                                                   |                             90.9 (2)                              |   |
|   Total Cost as a % of Market Capitalization Growth |                            2.2%                                   |                              0.6%                                        |                                  – |                            2.8%                                             |   |

|   |   |   |   |
|--------|--------|--------|--------|
|   |   |   |   |

| (1)   | Indicates the dollar amount based on the grant date fair value of the RSUs awarded under the LTIP for the financial year. The grant date fair value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York (for grants of RSUs prior to January 1, 2009) or the Bank of Canada (for grants of RSUs on or after January 1, 2009) on the grant date to convert the NASDAQ National Market closing price to Canadian dollars. Grants of RSUs to NEOs are detailed under section “Compensation Discussion & Analysis – Long-Term Incentive Plan”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes the redemption of 3,600 and 8,181,093 Subordinate Voting Shares respectively in fiscal 2010 and 2009 under the normal course issuer bid and substantial issuer bid of the Corporation during these years. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Name andPrincipal Position                                                                                   | FinancialYear                                                                                                                                                          | Salary (1) (2)($)                                                                                                                                                                                                                                             | Share-BasedAwards (2)(3)($)                                                                                                                                                                                | Option-basedAwards($)                                                                                                                                                                                                                                         | Non-equity incentiveplan compensation ($)                                                                                                                                   | Pensionvalue ($) | All othercompensation (2) (5)($)                                                                                                                                                                                                 | TotalCompensation($)                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| AnnualIncentiveplans (2) (4)                                                                                 | Long-termIncentiveplans                                                                                                                                                |
|   Germain Lamonde,  President and Chief  Executive Officer                                    | 2011                                                                                                                                                                   |       424,500(US)      420,000(CA)                                                                                                                                                                          |       283,003(US)      280,003     (CA)                                                                                              | –                                                                                                                                                                                                                                                       |       218,947(US)      216,626(CA)                                                                                        | –          | –                                                                                                                                                                                                                          |            –                                                                                                                                                        |         926,450(US)        916,629(CA) |
| 2010                                                                                                         |       382,922(US)      400,000(CA)                                                                                   |       248,610(US)      259,698     (CA)                                                                                                                                                 | –                                                                                                                                                                                                    |       246,149(US)      257,127(CA)                                                                                                                                                                          | –                                                                                                                                                                     | –          |            –                                                                                                                                                             |         877,681(US)        916,825(CA)                                                                                                                |
| 2009                                                                                                         |       314,887(US)      371,000(CA)                                                                                   |       163,384(US)      192,499     (CA)                                                                                                                                                 | –                                                                                                                                                                                                    |       135,335(US)      159,452(CA)                                                                                                                                                                          | –                                                                                                                                                                     | –          |            –                                                                                                                                                             |         613,606(US)        722,951(CA)                                                                                                                |
|   Pierre Plamondon,   Vice-President,  Finance and    Chief Financial  Officer | 2011                                                                                                                                                                   |       241,646(US)      239,085(CA)                                                                                                                                                                          |       137,305(US)      135,850      (CA)                                                                                        | –                                                                                                                                                                                                                                                       |         76,569     (US)        75,757     (CA)      | –          | –                                                                                                                                                                                                                          |               8,747    (US)              8,654    (CA)      |         464,267(US)        459,346(CA) |
| 2010                                                                                                         |       221,137(US)      231,000(CA)                                                                                   |         63,182     (US)        66,000     (CA)                                                                                        | –                                                                                                                                                                                                    |         92,060     (US)        96,166     (CA)                                                                                        | –                                                                                                                                                                     | –          |               5,777    (US)              6,035    (CA)      |         382,156(US)        399,202(CA)                                                                                                                |
| 2009                                                                                                         |       186,726(US)      220,000(CA)                                                                                   |       102,614(US)      120,900      (CA)                                                                                                                                           | –                                                                                                                                                                                                    |         51,033     (US)        60,127     (CA)                                                                                        | –                                                                                                                                                                     | –          |               5,033    (US)              5,930    (CA)           |         345,406(US)        406,957(CA)                                                                                                                     |
|   Jon Bradley,  Vice-President,  Sales — EMEA                                           | 2011                                                                                                                                                                   |       158,312(US)      156,634(CA)        98,708     (£)                                                                              |       108,584(US)      107,433      (CA)        69,396     (£) | –                                                                                                                                                                                                                                                       |       103,761(US)      102,661(CA)        64,695     (£) | –          | –                                                                                                                                                                                                                          |            –                                                                                                                                                        |         370,657(US)        366,728(CA)        232,799(£) |
| 2010                                                                                                         |       151,044(US)      157,780(CA)        96,532     (£) |         39,003     (US)        40,742     (CA)        24,927     (£) | –                                                                                                                                                                                                    |         96,363     (US)      100,661(CA)        61,585     (£)                                          | –                                                                                                                                                                     | –          |            –                                                                                                                                                             |         286,410(US)        299,183(CA)        183,044(£)                                                                     |
| 2009                                                                                                         |       133,799(US)      157,642(CA)        86,100     (£) |       105,766(US)      124,614      (CA)        68,061     (£)                                                    | –                                                                                                                                                                                                    |         65,578     (US)        77,264     (CA)        42,200     (£) | –                                                                                                                                                                     | –          |            –                                                                                                                                                             |         305,143(US)        359,520(CA)        196,361(£)                                                                |
|   Vivian Hudson,  Vice-President,  Service Assurance                                          | 2011                                                                                                                                                                   |       194,880(US)      192,814(CA)                                                                                                                                                                          |       185,630(US)      183,662      (CA)                                                                                        | –                                                                                                                                                                                                                                                       |         49,274     (US)        48,752     (CA)      | –          | –                                                                                                                                                                                                                          |               6,489    (US)              6,420    (CA) |         436,273(US)        431,648(CA) |
| 2010                                                                                                         |       174,134(US)      181,900(CA)                                                                                   |         48,822     (US)        51,000     (CA)                                                                                        | –                                                                                                                                                                                                    |         50,664     (US)        52,924     (CA)                                                                                        | –                                                                                                                                                                     | –          |               4,387    (US)              4,582    (CA) |         278,007(US)        290,406(CA)                                                                                                                          |
| 2009                                                                                                         |       140,403(US)      165,423(CA)                                                                                   |         36,073     (US)        42,501     (CA)                                                                                        | –                                                                                                                                                                                                    |         33,640     (US)        39,635     (CA)                                                                                        | –                                                                                                                                                                     | –          |               1,458    (US)              1,718    (CA)           |         211,574(US)        249,277(CA)                                                                                                                          |
|   Dana Yearian,  Vice-President,  Sales — Americas                                      | 2011                                                                                                                                                                   |       208,000(US)      205,795(CA)                                                                                                                                                                          |       123,410(US)      122,102      (CA)                                                                                        | –                                                                                                                                                                                                                                                       |       217,246(US)      214,944(CA)                                                                                        | –          | –                                                                                                                                                                                                                          |               7,350    (US)              7,272    (CA) |         556,006(US)        550,113(CA) |
| 2010                                                                                                         |       200,000(US)      208,920(CA)                                                                                   |         57,001     (US)        59,544     (CA)                                                                                        | –                                                                                                                                                                                                    |       170,297(US)      177,892(CA)                                                                                                                                                                          | –                                                                                                                                                                     | –          |               8,502    (US)              8,881    (CA)           |         435,801(US)        455,237(CA)                                                                                                                     |
| 2009                                                                                                         |       190,000(US)      223,858(CA)                                                                                   |       114,451(US)     134,846      (CA)                                                                                                                                                 | –                                                                                                                                                                                                    |         97,508     (US)      114,884(CA)                                                                                                                                 | –                                                                                                                                                                     | –          |               6,536    (US)              7,701    (CA)           |         408,495(US)        481,289(CA)                                                                                                                     |

----

Table of Contents

|   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

| (1)   | Base salary earned in the financial year, regardless when paid. |
|-----------------|-----------------------------------------------------------------|

| (2)   | The compensation information for Canadian residents has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$0.9894 = US$1.00 for the financial year ended August 31, 2011, CA$1.0446 = US$1.00 for the financial year ended August 31, 2010 and CA$1.1782 = US$1.00 for the financial year ended August 31, 2009. The compensation information for UK resident has been converted from British Pounds to US dollars based upon an average foreign exchange rate of £0.6235 = US$1.00 for the financial year ended August 31, 2011, £0.6391 = US$1.00 for the financial year ended August 31, 2010 and £0.6435 = US$1.00 for the financial year ended August 31, 2009 and the conversion from US dollars to Canadian dollars is made as described above. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Indicates the dollar amount based on the grant date fair value of the RSUs awarded under the LTIP for the financial year. The grant date fair value is equal to the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York (for grants of RSUs prior to January 1, 2009) or the Bank of Canada (for grants of RSUs on or after January 1, 2009) on the grant date to convert the NASDAQ National Market closing price to Canadian dollars. Grants of RSUs to NEOs are detailed under section “Compensation Discussion & Analysis – Long-Term Incentive Plan”. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Indicates the total bonus earned during the financial year whether paid during the financial year or payable on a later date: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

|   | Name                    | Paid during thefinancial year endedAugust 31, 2011 (i)($)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Paid in the first quarterof the financial yearending on August 31, 2012 (i)($)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Total bonus earned duringthe financial yearended August 31, 2011 (i)($)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   Germain Lamonde  |                            115,697    (US)                           114,471    (CA)                                                                                                                                                                                |                            103,250    (US)                           102,155    (CA)                                                                                                                                                                                     |                           218,947    (US)                          216,626    (CA)                                                                                                                                                                                                  |
|   |   Pierre Plamondon |                           42,953    (US)                          42,497    (CA)                                                                                                                                                                                         |                           33,616    (US)                          33,260    (CA)                                                                                                                                                                                                        |                          76,569    (US)                         75,757    (CA)                                                                                                                                                                                                           |
|   |   Jon Bradley      |                           83,024    (US)                          82,144    (CA)                          51,765    (£) |                           20,737    (US)                          20,517    (CA)                          12,930    (£) |                           103,761    (US)                          102,661    (CA)                         64,695    (£) |
|   |   Vivian Hudson    |                           30,021    (US)                          29,703    (CA)                                                                                                                                                                                    |                           19,253    (US)                          19,049    (CA)                                                                                                                                                                                              |                          49,274    (US)                         48,752    (CA)                                                                                                                                                                                                                |
|   |   Dana Yearian     |                            181,639    (US)                           179,714    (CA)                                                                                                                                                                           |                           35,607    (US)                          35,230    (CA)                                                                                                                                                                                              |                           217,246     (US)                          214,944    (CA)                                                                                                                                                                                            |

|   |                             |   |   |   |
|--------|----------------------------------|--------|--------|--------|
|   |  (i) Refer to note 2 above. |   |   |   |

| (5)   | Indicates the amount contributed by the Corporation during the financial year to the Deferred Profit-Sharing Plan as detailed under section “Compensation Discussion & Analysis – Deferred Profit-Sharing Plan”, 401K Plan as detailed under section “Compensation Discussion & Analysis – 401K Plan”, as applicable, for the benefit of the NEOs. Mr. Lamonde is not eligible to participate in the Deferred Profit Sharing Plan and Mr. Bradley did not participate but received an allocation to be used at his discretion. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                                                                                   | Outstanding Option-based Awards (Options)                                                        | Outstanding Share-based Awards (RSUs) |
|--------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|---------------------------------------|
| Number of securitiesunderlyingunexercised options(#)                                    | OptionExercisePrice(US$) (1)                                                                     | Optionexpiration date                 | Value (2) ofunexercised in-the-moneyoptions (US$) (3) | Number of sharesor units of sharesthat have notvested (#) | Market or payoutvalue of share-basedawards that havenot vested (US$) (4) |
|    Germain Lamonde                                                                           |                70,000 |  9.13                            |    Oct. 10, 2011 |                         – |                       222,899 | 1,491,194 |
|                50,000            |  1.58                                                                                       |    Sept. 25, 2012           |               255,500 |
|                17,942            |  4.51                                                                                       |    Feb. 1, 2015             |                 39,114 |
|                11,218            |  4.76                                                                                       |    Dec. 6, 2015             |                 21,651 |
|    Pierre Plamondon                                                                          |                19,000 |  9.13                            |    Oct. 10, 2011 |                         – |                         96,331 |    644,454 |
|                  5,383 |  5.13                                                                                       |    Oct. 26, 2014            |                   8,397 |
|                  3,653 |  4.76                                                                                       |    Dec. 6, 2015             |                   7,050 |

----

Table of Contents

| Name                                                                | Outstanding Option-based Awards (Options)                                                                                                    | Outstanding Share-based Awards (RSUs) |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
| Number of securitiesunderlyingunexercised options(#) | OptionExercisePrice(US$) (1)                                                                                                                 | Optionexpiration date                 | Value (2) ofunexercised in-the-moneyoptions (US$) (3) | Number of sharesor units of sharesthat have notvested (#) | Market or payoutvalue of share-basedawards that havenot vested (US$) (4) |
|    Jon Bradley                                            |                        – |  –                         | – |                         – |                         75,398 |    504,413 |
|    Vivian Hudson                                          |                        – |  –                         | – |                         – |                         55,205 |    369,321 |
|    Dana Yearian                                           |                        – |  –                         | – |                         – |                         95,834 |    641,129 |

|   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |   |

| (1) | Prices noted are the grant date exercise price for each option under each award. |
|-----|----------------------------------------------------------------------------------|

| (2) | The unexercised options have not been and may never be exercised and actual gains if any, on exercise will depend on the value of the Subordinate Voting Shares on the date of exercise. There can be no assurance that these options will be exercised or any gain realized. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2011. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The value of unvested RSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                                                | Exercised Option-based Awards (Options)                                                                                                                                                                                                            |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number of securities underlyingexercised options (#) | Option Exercise Price(US$)                                                                                                                                                                                                                         | Option grant date | Gains realized (US$) |
|    Germain Lamonde                                        |                                         – |                                        – | – |                                  – |
|    Pierre Plamondon                                       | 20,000                                                                                                                                                                                                                                             |  1.58 | September 25, 2002 | 135,829 |
|    Jon Bradley                                            |                                         – |                                       – | – |                                  – |
|    Vivian Hudson                                          |                                         – |                                       – | – |                                  – |
|    Dana Yearian                                           |                                         – |                                       – | – |                                  – |

| Name                          | Option-based awards – valuevested during the year (US$) (1) | Share-based awards – valuevested during the year (US$) (2)                                                                                                                                                                                                     | Non-equity incentive plancompensation – Value earnedduring the year (US$) (3)                                                                                                                          |
|-------------------------------|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    Germain Lamonde  | –                                                           |                                  123,254                                                             |                                207,474                 |
|    Pierre Plamondon | –                                                           |                                    61,123                                                  |                                  77,025 |
|    Jon Bradley      | –                                                           |                                      3,588                                       |                                103,761                 |
|    Vivian Hudson    | –                                                           |                                            – |                                  53,835 |
|    Dana Yearian     | –                                                           |                                    21,874                                                  |                                217,246                 |

----

Table of Contents

|   |   |   |   |
|--------|--------|--------|--------|

| (1) | Indicates the aggregate dollar value that would have been realized on the vesting date if the options under the option-based awards had been exercised on the vesting date. The value of option-based awards vested during the year at the vesting date is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share on the date of the vesting. The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on the date of the vesting using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The aggregate dollar value realized is equivalent to the market value of the Subordinate Voting Shares underlying the RSUs at vesting. This value, as the case may be, has been converted from Canadian dollars to US dollars based upon the noon buying rate of the Bank of Canada on the day of vesting. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes total non-equity incentive plan compensation earned by each NEO in respect to the financial year ended on August 31, 2011 (as indicated under the “Summary Compensation Table”). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Named Executive Officer       | Termination Payment Event                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Without Cause ($) (1) (2)     | Change of Control ($) (2) (3) (4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Voluntary ($) |
|    Germain Lamonde  |                          3,148,756(US) (5)                         3,045,566(CA)                                                                                                                                                                                                          |                                3,148,756(US)                               3,045,566(CA) |                                1,807,459(US) (6)                               1,691,312(CA) |
|    Pierre Plamondon |                             577,478(US)                            558,054(CA)                                                                                                                                                                                        |                                1,160,462(US)                               1,139,134(CA) |                                             – |
|    Jon Bradley      |                             341,029(US)                            334,983(CA)                            212,632(£) |                                   674,196(US)                                  665,387(CA)                                  421,363(£) |                                             – |
|    Vivian Hudson    |                             182,142(US)                            179.001(CA)                                                                                                                                                                                             |                                   492,093(US)                                  484,462(CA) |                                             – |
|    Dana Yearian     |                             487,047(US)                            478,645(CA)                                                                                                                                                                                             |                                1,208,575(US)                               1,203,244(CA) |                                             – |

|   |   |   |   |
|--------|--------|--------|--------|
|   |   |   |   |

| (1) | The aggregate amount disclosed includes an evaluation of the amount that the NEO would have been entitled to should a termination of employment without cause have occurred on August 31, 2011 and includes, as the case may be for each NEO, the base salary that would have been received and total value of RSUs and options that would have vested (with the exception of Mr. Lamonde’s evaluation which is described in note 4 below and includes: the base salary, STIP compensation, and total value of RSUs and options that would have vested). The amount for base salary compensation is calculated according to those amounts provided under the section entitled “Summary Compensation Table” included in this Annual Report. The amount for the total value attached to the vesting of RSUs and options determined pursuant to the LTIP as described in the section entitled “Long-Term Incentive Compensation – Long-Term Incentive Plan” for termination without cause. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The aggregate amount for Canadian residents has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$0.9894 = US$1.00 for the financial year ended August 31, 2011. The aggregate amount disclosed for UK resident has been converted from British Pounds to US dollars based upon an average foreign exchange rate of £0.6235 = US$1.00 for the financial year ended August 31, 2011 and the conversion from US dollars to Canadian dollars is made as described above. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Is considered a “Change of Control” a merger or an acquisition by a third party of substantially all of the Corporation’s assets or of the majority of its share capital. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The aggregate amount disclosed includes, as the case may be for each NEO, an evaluation of the amount that the NEO would have been entitled to should a termination of employment for Change of Control have occurred on August 31, 2011 and includes, as the case may be, namely, the base salary, STIP or SIP compensation and total value of RSUs and options that would have vested. The amount for base salary and STIP or SIP compensation are calculated according to those amounts provided under the section entitled “Summary Compensation Table” included in this Annual Report, the total value attached to the vesting of RSUs and options is calculated according to those amounts provided in the columns named “Value of unexercised in-the-money options” and “Market or payout value of share-based awards that have not vested” of the table included under the heading entitled – “Outstanding share-based awards and option-based awards”. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (5) | The aggregate amount disclosed includes an evaluation of the amount that Mr. Lamonde would have been entitled to should a termination of employment without cause have occurred on August 31, 2011 and includes: the base salary, STIP compensation, and total value of RSUs and options that would have vested. The amount for base salary and STIP compensation are calculated according to those amounts provided under the section entitled “Summary Compensation Table” included in this Annual Report; the total value attached to the vesting of RSUs and options are calculated according to those amounts provided in the columns named “Value of unexercised in-the-money options” and “Market or payout value of share-based awards that have not vested” of the table included under the heading entitled – “Outstanding share-based awards and option-based awards”. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The aggregate amount disclosed includes an evaluation of the amount that Mr. Lamonde would have been entitled to should a voluntary termination of employment have occurred on August 31, 2011 and includes: the total value of RSUs and options that would have vested. The amount for the total value attached to the vesting of RSUs and options are calculated according to those amounts provided in the columns named “Value of unexercised in-the-money options” and “Market or payout value of share-based awards that have not vested” of the table included under the heading entitled – “Outstanding share-based awards and option-based awards”. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    Annual Retainer for Directors (1)                   |                         CA$50,000   (2) |                            US$50,536(3)                       |
|------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    Annual Retainer for Lead Director                   |                        CA$5,000                        |                              US$5,054(3)            |
|    Annual Retainer for Committee Chairman              |                        CA$5,000                   |                              US$5,054(3)            |
|    Annual Retainer for Committee Members               |                        CA$3,000                   |                              US$3,032(3)                 |
|    Fees for all Meetings Attended per day in Person    |                        CA$1,000                   |                              US$1,011(3)            |
|    Fees for all Meetings Attended per day by Telephone |                      CA$500                            |                                 US$505(3) |

|   |   |   |
|--------|--------|--------|
|   |   |   |

| (1)   | All the Directors elected to receive 50% of their Annual Retainer in form of DSUs with the exception of Mr. André Tremblay who elected to receive 0% of his Annual Retainer in form of DSUs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The Annual Retainer for Mr. Pierre-Paul Allard and Mr. David A. Thompson is US$50,000 (CA$49,470). |
|-----------------|----------------------------------------------------------------------------------------------------|

| (3)   | The compensation information has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$0.9894 = US$1.00 for the financial year ended August 31, 2011. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                                 | Fees earned (1)($)                                                                                                                                                               | Share-basedAwards($) | Option-basedawards($) | Non-equityincentive plancompensation ($) | PensionValue($) | All otherCompensation($) | Total($)                                                                                                                                            |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|-----------------------|------------------------------------------|-----------------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|    Pierre-Paul Allard      |              61,623(US)             60,970(CA) | –              | –               | –                                  | –         | –                  |            61,623(US)           60,970(CA) |
|    Pierre Marcouiller      |              64,729(US)             64,062(CA)      | –              | –               | –                                  | –         | –                  |            64,729(US)           64,062(CA)      |
|    Guy Marier              |              68,401(US)             67,675(CA)           | –              | –               | –                                  | –         | –                  |            68,401(US)           67,675(CA)      |
|    David A. Thompson       |              61,118(US)             60,470(CA)      | –              | –               | –                                  | –         | –                  |            61,118(US)           60,470(CA) |
|    André Tremblay (2) |              25,487(US)             25,217(CA)      | –              | –               | –                                  | –         | –                  |            25,487(US)           25,217(CA)      |

|   |   |
|--------|--------|
|   |   |

| (1)   | The compensation information has been converted from Canadian dollars to US dollars based upon an average foreign exchange rate of CA$0.9894 = US$1.00 for the financial year ended August 31, 2011 except for Mr. Pierre-Paul Allard and Mr. David A. Thompson who are paid in US dollars for the portion of their annual retainer for Directors. The fees are always payable in cash, but executives are provided the opportunity to elect to exchange all or a portion of their Annual Retainer for Directors in DSUs. The following table identifies the portion of the fees earned by the directors that were paid in DSUs and the portion that were paid in cash. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | Name                                   | Fees earned                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | DSUs ($) (i)                           | Cash ($)                                                                                                                                                                                                                                                                                                                                                                                       | Total ($) |
|   |    Pierre-Paul Allard (ii)   |                           25,000     (US)                          24,735     (CA) |                            36,623     (US)                           36,235     (CA) |                         61,623     (US)                        60,970     (CA) |
|   |    Pierre Marcouiller (ii)   |                           25,268     (US)                          25,000     (CA)      |                            39,461     (US)                           39,042     (CA) |                         64,729     (US)                        64,042     (CA) |
|   |    Guy Marier (ii)           |                           25,268     (US)                          25,000     (CA)           |                            43,133     (US)                           42,675     (CA) |                         68,401     (US)                        67,675     (CA) |
|   |    David A. Thompson (ii)    |                           25,000     (US)                          24,735     (CA)           |                            36,118     (US)                           35,735     (CA) |                         61,118     (US)                        60,470     (CA) |
|   |    André Tremblay (iii) |                      –     (US)                     –     (CA)                                                                     |                            25,487     (US)                           25,217     (CA) |                         25,487     (US)                        25,217     (CA) |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|

| (i)   | The estimated value at the time of grant of a DSU is determined based on the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York (for grants of DSUs prior to January 1, 2009) or the Bank of Canada (for grants of DSUs on or after January 1, 2009) on the grant date to convert the NASDAQ National Market closing price to Canadian dollars, as required. The value at vesting of a DSU is equivalent to the market value of a Subordinate Voting Share when a DSU is converted to such Subordinate Voting Share. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Elected to receive 50% of his Annual Retainer for Directors in form of DSUs. |
|------------------|------------------------------------------------------------------------------|

| (iii)   | Elected to receive his Annual Retainer for Directors in cash and ceased to be a member of the Board of Directors as at January 20, 2011. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Mr. Tremblay ceased to be a member of the Board of Directors as at January 20, 2011. |
|-----------------|--------------------------------------------------------------------------------------|

| Name                                                                                                                                                         | Outstanding Option-based Awards (Options)                                                                                                                                                                | Outstanding Share-based Awards (DSUs)                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number of securitiesunderlyingunexercised options(#)                                                                                                         | OptionExercisePrice(US$) (1)                                                                                                                                                                             | Optionexpiration date                                                                                                                                                                              | Value (2) ofunexercised in-the-moneyoptions (US$) (3) | Number of sharesor units of sharesthat have notvested (#) | Market or payoutvalue of share-basedawards that havenot vested (US$) (4) |
|    Pierre-Paul Allard                                                                                                                              |                                  – |                                 – | – |                      – | 16,270 |  108,846 |
|    Pierre Marcouiller                                                                                                                              | 17,966                                                                                                                                                                                                   |                             9.13                            | Oct. 10, 2011 |                      – | 31,942 |  213,692 |
|                           1,037 |                           12.69                                             | Dec. 1, 2011                                                                                                                                                                                       |                      – |
|    Guy Marier                                                                                                                                      | 12,500                                                                                                                                                                                                   |                             4.65                            | Mar. 24, 2014 | 25,500 | 31,942 |  213,692 |
|    David A. Thompson                                                                                                                               | 12,500                                                                                                                                                                                                   |                             3.51                            | Oct. 27, 2013 | 39,750 | 30,144 |  201,663 |
|    André Tremblay (5)                                                                                                                         |                                 –       |                                 – | – |                      – |                         – |                                – |

|   |   |
|--------|--------|
|   |   |

| (1) | Prices noted are the grant date exercise price for each option under each award. |
|-----|----------------------------------------------------------------------------------|

| (2) | The unexercised options have not been and may never be exercised and actual gains if any, on exercise will depend on the value of the Subordinate Voting Shares on the date of exercise. There can be no assurance that these options will be exercised or any gain realized. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2011. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2011 which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (4) | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr. Tremblay ceased to be a member of the Board of Directors as at January 20, 2011. |
|-----|--------------------------------------------------------------------------------------|

| Name                                                                           | Exercised Option-based Awards (Options)      |
|--------------------------------------------------------------------------------|----------------------------------------------|
| Number of securities underlying exercised options (#) | Option Exercise Price(US$)                   | Optiongrant date | Gains realized (US$) |
|    Pierre-Paul Allard                                                |        – |                                      – | – |                                – |
|    Pierre Marcouiller                                                | 12,500                                       |  1.58 | Sept. 25, 2002 |                     117,270 |
| 12,500                                                                         |  3.51                                   | Oct. 27, 2003 |                       89,282 |
|  2,479                                                                    |  5.65                                   | March 1, 2002 |                         7,150 |
|    Guy Marier                                                        |        – |                                      – | – |                                – |
|   David A. Thompson                                                       | 12,500                                       |  1.58 | Sept. 25, 2002 |                     123,457 |
| 15,334                                                                         |  9.13                                   | Oct. 10, 2001 |                       35,728 |
|    André Tremblay (1)                                           |        – |                                      – | – |                                – |

|   |   |   |
|--------|--------|--------|
|   |   |   |

| (1)   | Mr. Tremblay ceased to be a member of the Board of Directors as at January 20, 2011. |
|-----------------|--------------------------------------------------------------------------------------|

| Name                    | Number of DSUs converted | Aggregate Value Realized (US$) (1) |
|-------------------------|--------------------------|------------------------------------|
| André Tremblay (2) | 37,491                   | 371,094                            |

|   |   |   |
|--------|--------|--------|
|   |   |   |

| (1)   | The aggregate value realized is equivalent to the market value of the securities underlying the DSUs at conversion. This value has been converted from Canadian dollars to U.S. dollars based on the noon buying rate of the Bank of Canada on the day of conversion. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Mr. Tremblay ceased to be a member of the Board of Directors as at January 20, 2011. |
|-----------------|--------------------------------------------------------------------------------------|

| Plan category                     | Number of securities to be issuedupon exercise of outstandingoptions, RSUs and DSUs (#)(a)                                                                                                                                                                                 | Weighted-average exercise priceof outstanding options, RSUs andDSUs (US$)(b) | Number of securities remainingavailable for future issuance underequity compensation plans (excludingsecurities reflected in column (a)) (#)(c) |
|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|    LTIP – RSUs    |                                          1,551,658                 | n/a (1)                                                                      | 2,230,170                                                                                                                                       |
|    LTIP – Options |                                             641,357 | 6.27                                                                         |
|    DSUP – DSUs    |                                             110,298 | n/a (1)                                                                      |

|   |   |   |   |
|--------|--------|--------|--------|
|   |   |   |   |

| (1) | The value of RSUs and DSUs will be equal to the market value of the Subordinate Voting Shares of the Corporation on the date of vesting. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                       | August 31,                                                                                                            |
|------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|                                                                                                       | 2006                                                                                                                  | 2007 | 2008 | 2009 | 2010 | 2011 |
|    EXFO Subordinate Voting Share                                                                 |                    100      |                    120 |                      76 |                     56 |                   100 |                   110 |
|    S&P/TSX Stock Index                                                                       |                    100 |                    112 |                    113 |                     89 |                     98 |                   105 |
|    Sum of NEO’s total compensation      (in millions of CA$) |                  $1.8            |                   $2.0 |                   $2.1 |                  $2.3 |                  $2.5 |                  $2.7 |

----

Table of Contents

| ·   | Our share performance improved from the financial year ended August 31, 2006 to the financial year ended August 31, 2007 and from the financial year ended August 31, 2009 to the financial year ended August 31, 2011, which is aligned with the increase of the total compensation received by the NEOs during such periods reflecting the implementation of the revised Long-Term Incentive Plan in fiscal year 2005. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our share performance weakened in financial years ended August 31, 2008 and 2009 as a result of the significant downturn in the economy; this is similar to other technology sector companies. It should be noted that during these two fiscal years, we delivered EBITDA* of 11.2 % and 8.4 % respectively for 2008 and 2009 while we were expanding our activities, developing new market territories and acquiring new businesses. This expansion significantly increased the complexity of our operations and the organization. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The increase in the total compensation received by the named executive officers over the identified five-year period is the result of an initiative to gradually close the compensation gap with respect to market rates pursuant to our three-year plan adopted in 2007 based on Mercer’s and Aon’s recommendations and our plan adopted in 2010 being defined herein as the Mercer Three Year Compensation Plan. In addition, total compensation received by the named executive officers over the identified period roses as a result of the additional roles and responsibilities of such individual due to the increased complexity of our organization and to the addition of new senior members in the named executives with higher compensation. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| * | EBITDA is defined as net earnings (loss) before interest, income taxes, amortization of property, plant and equipment, amortization of intangible assets, impairment of goodwill and extraordinary gain. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|  C. |  Board Practices |
|----------|-----------------------|

----

Table of Contents

|     GERMAIN LAMONDE                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                    |  St-Augustin-de-Desmaures, Quebec, Canada Director sinceSeptember 1985 Not Independent (Management) Principal Occupation: Chairman of the Board of Directors, President and Chief Executive Officer, EXFO Inc.  |  Germain Lamonde, a company founder, has been President and Chief Executive Officer of EXFO since its inception in 1985. He has also been Chairman of the Board since EXFO went public in 2000. Responsible for the overall management and strategic direction of EXFO, Mr. Lamonde has grown the company from the ground up into a global leader in the wireline and wireless telecommunication test and service assurance industry. Mr. Lamonde has served on the board of directors of several organizations such as the Canadian Institute for Photonic Innovations, the POLE QCA Economic Development Corporation and the National Optics Institute of Canada (INO), to name a few. Germain Lamonde holds a bachelor's degree in physics engineering from the University of Montreal's School of Engineering (École Polytechnique), a master's degree in optics from Université Laval in Quebec City, and is also a graduate of the Ivey Executive Management Program offered by the University of Western Ontario. |
|    Board/Committee Membership                                                                                     | Attendance (1) |    Principal Board Memberships |
|    Chairman of the Board of Directors                                                                             | 8/8 | 100% |    – |
| Securities Held                                                                                                             |
| As at                                                                                                                       | SubordinateVoting Shares(#) | Multiple VotingShares(#) | RSUs(#) | Total Shares (2)and RSUs(#) | Total Market Value (3)of Shares (2)and RSUs(US$) |
|    August 31, 2011                                                                                                | 4,043,348 (4) | 31,643,000 (5) | 222,899 | 35,909,247 | 240,232,862 |
| Options Held as at August 31, 2011                                                                                          |
| Date Granted                                                                                                                | Number(#) | Exercise Price (US$) | Total Unexercised(#) | Value of OptionsUnexercised (US$) (6) |
|    October 10, 2001   September 25, 2002   February 1, 2005   December 6, 2005 |                  70,000                 50,000                 17,942                 11,218 |                                9.13                               1.58                               4.51                               4.76 |                   70,000                  50,000                  17,942                  11,218 |                                           –                                255,500                                  39,113                                  21,651 |
|    Total                                                                                                          |   |   |                 149,160 |                                 316,264 |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|
|   |   |   |   |   |

| (1)   | From September 1, 2010 until November 1, 2011, Mr. Lamonde attended 7 meetings in person and 1 meeting by telephone. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes both Subordinate Voting Shares and Multiple Voting Shares. |
|-----------------|---------------------------------------------------------------------|

| (3)   | The value of unvested RSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares and Multiple Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of RSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr. Lamonde exercises control over 4,000,000 of Subordinate Voting Shares through G. Lamonde Investissements Financiers inc., a company controlled by Mr. Lamonde. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Mr. Lamonde exercises control over this number of Multiple Voting Shares through G. Lamonde Investissements Financiers inc., a company controlled by Mr. Lamonde and through Fiducie Germain Lamonde, a family trust for the benefit of Mr. Lamonde’s family. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2011. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share as at August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|     PIERRE-PAUL ALLARD                                                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                         |  Pleasanton, California, USA Director sinceSeptember 2008 Independent Principal Occupation:Vice-President, Sales and Operations, Global Industries for Cisco Systems Inc. (1) |  Pierre-Paul Allardwas appointed a member of our Board of Directors in September 2008 and has been a board member of many other technology companies in Canada and in the US. Today, he is also an active philanthropist for l’Institut de Cardiologie de Québec. Mr. Allard is presently Vice-President, Sales and Operations, Global Industries for Cisco Systems Inc., where he has held several senior management positions over the last 18 years. More recently, Mr. Allard was President and CEO of Cisco Systems Canada.  Currently, he is responsible for all field operations of Cisco’s Global Enterprise Client segment, focusing on new business models, market transition opportunities and increased customer satisfaction. Prior to joining Cisco, Mr. Allard worked for  IBM Canada  for 12 years. In 2002, Mr. Allard  co-chaired the Canadian e-Business Initiative, a private-public partnership aiming to measure the role e-Business plays in increasing productivity levels, job creation and competitive position. In 1998, he was the laureate of the Arista-Sunlife Award, for Top Young Entrepreneur in Large Enterprise, by the Montreal Chamber of Commerce. In 2003, he received the Queen’s Golden Jubilee Medal, which highlights significant contributions to Canada.  In the same year, he was also awarded the prestigious Trudeau Medal from the University of Ottawa, Tefler School of Management. Pierre-Paul Allard holds a bachelor’s and masters’ degree in Business Administration from the University of Ottawa, in Canada.  |
|    Board/Committee Membership                                                                                                      | Attendance (2) |    Principal Board Memberships |
|    Board of Directors   Audit Committee   Human Resources Committee   Independent Board of Directors | 8/84/55/56/7 | 100%80%100%86% |    – |
| Securities Held                                                                                                                              |
| As at                                                                                                                                        | SubordinateVoting Shares(#) | DSUs(#) | Total Sharesand DSUs(#) | Total Market Value (3)of Shares (4) and DSUs(US$) |
|    August 31, 2011                                                                                                                 | 8,000 | 16,270 | 24,270 | 162,366 |
| Options Held as at August 31, 2011                                                                                                           |
| Date Granted                                                                                                                                 | Number(#) | Exercise Price (US$) | Total Unexercised(#) | Value of OptionsUnexercised (US$) |
| –                                                                                                                                      | – | – | – | – |

|   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |

| (1)   | Cisco Systems Inc. is a leading network equipment manufacturer in the global telecommunications industry. |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (2)   | From September 1, 2010 until November 1, 2011, Mr. Allard attended 6 meetings in person and 2 meetings by telephone. |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (3)   | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Refers to Subordinate Voting Shares. |
|-----------------|--------------------------------------|

----

Table of Contents

|     DARRYL EDWARDS                                                                                                       |                                                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                    |  Weston Under WetherleyWarwickshireUnited Kingdom Director sinceSeptember 2011 Independent Principal Occupation: Executive Consultant  |  Darryl Edwards was appointed a member of our Board of Directors in September 2011. He brings to EXFO more than 30 years of telecommunications experience gained from a number of senior executive leadership positions; from 2009 to 2011, he was the Chief Executive Officer of AIRCOM International, successfully leading the company through to business sale. Mr. Edwards was previously at Nortel Networks for 17 years, where he held various executive officer positions, including President of EMEA Sales from 2006 to 2009 and in 2009 President of Global Sales (Carrier Networks). He also was the Chief Executive Officer for two of Nortel’s key joint ventures, first in the Middle East and later in Germany. Prior to his time at Nortel, Mr. Edwards spent 13 years at GEC-Plessey Telecommunications where he worked in engineering, quality assurance and international sales. Mr. Edwards has held a number of chairs, including Chairman of the Board of Nortel’s interests in Turkey, Nortel Netas, which was listed on the Istanbul Stock Exchange. He also was a member of the Advisory Counsel to the Turkish government between 2004 and 2008, and previously served on the UK Government Broadband Stakeholders Group and the Information Age Partnership. Darryl Edwards holds a Higher National Certificate (Physics) from Birmingham Polytechnic in the UK.  |   |
|    Board/Committee Membership                                                                                                      | Attendance (1)                                                                                                                                                  |    Principal Board Memberships |   |
|    Board of Directors   Audit Committee   Human Resources Committee   Independent Board of Directors | 2/21/11/12/2                                                                                                                                                    | 100%100%100%100% |    Aircom International (Africa) Pty Ltd.  |   |
| Securities Held                                                                                                                              |                                                                                                                                                            |
| As at                                                                                                                                        | SubordinateVoting Shares (#)                                                                                                                                    | DSUs (#) | Total Sharesand DSUs (#) | Total Market Value (2)of Shares (3) and DSUs(US$) |   |
|    August 31, 2011                                                                                                                 | –                                                                                                                                                         | – | – | – |   |
| Options Held as at August 31, 2011                                                                                                           |                                                                                                                                                            |
| Date Granted                                                                                                                                 | Number (#)                                                                                                                                                      | Exercise Price (US$) | Total Unexercised (#) | Value of OptionsUnexercised (US$) |   |
|    –                                                                                                                         | –                                                                                                                                                         | – | – | – |   |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|
|   |   |   |   |   |

| (1)   | Mr. Edwards joined our Board of Directors in September 2011. From September 1, 2011 until November 1, 2011, Mr. Edward attended 2 meetings in person. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Refers to Subordinate Voting Shares. |
|-----------------|--------------------------------------|

----

Table of Contents

|     PIERRE MARCOUILLER                                                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                    |  Magog, Quebec, Canada Director since May 2000Lead Director sinceJanuary 2011 Independent Principal Occupation:Chairman of the Board andChief Executive Officer,Camoplast  Solideal Inc. (1) |  Pierre Marcouiller has served as our Director since May 2000. Mr. Marcouiller is Chairman of the Board and CEO of Camoplast Solideal Inc. a world leader in the design, manufacturing and distribution of off-road tires, rubber tracks, undercarriage systems and wheels and a NA leader in under-the-hood plastic components and assemblies for the automotive industry. Prior to joining Camoplast, Mr. Marcouiller was President and General Manager of Venmar Ventilation Inc. (1988-1996), where he was the controlling shareholder from 1991 to 1996. Mr. Marcouiller is also a Director of Canam Group Inc., an industrial company specialized in the design and fabrication of construction products and solutions in the commercial, industrial, institutional, residential, and bridge and highway infrastructures markets. Mr. Marcouiller also holds directorships in other privately held companies. Pierre Marcouiller holds a bachelor’s degree in business administration from the Université du Québec à Trois-Rivièresand an MBA from the Université de Sherbrooke.  |
|    Board/Committee Membership                                                                                                      | Attendance (2) |    Principal Board Memberships |
|    Board of Directors   Audit Committee   Human Resources Committee   Independent Board of Directors | 7/85/55/57/7 |  88%100%100%100% |    Canam Group Inc. |
| Securities Held                                                                                                                              |
| As at                                                                                                                                        | SubordinateVoting Shares(#) | DSUs(#) | Total Sharesand DSUs(#) | Total Market Value (3)of Shares (4) and DSUs(US$) |
|    August 31, 2011                                                                                                                 | 5,000 | 31,942 | 36,942 | 247,142 |
| Options Held as at August 31, 2011                                                                                                           |
| Date Granted                                                                                                                                 | Number(#) | Exercise Price (US$) | Total Unexercised(#) | Value of OptionsUnexercised (US$) (5) |
|    October 10, 2001   December 1, 2001                                                                                   |                      17,966                       1,037 |                                 9.13                              12.69 |                         17,966                          1,037 |                                –                               – |
|    Total                                                                                                                           |   |   |                         19,003 |                                – |

|   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |

| (1)   | Camoplast Solideal is a world leader in the design, manufacturing and distribution of off-road tires, rubber tracks, undercarriage systems, wheels, body dressing parts, under-the-hood plastic components and assemblies, molded skis, engine covers, thermal and air induction systems for the construction, agricultural, industrial, powersports, defense and automotive markets (industries). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | From September 1, 2010 until November 1, 2011, Mr. Marcouiller attended 7 meetings in person and no meeting by telephone. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------|

| (3)   | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Refers to Subordinate Voting Shares. |
|-----------------|--------------------------------------|

| (5)   | Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2011. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|     GUY MARIER                                                                                                           |                                                                                                                                                                                        |
|----------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                         |  Lakefield Gore, Quebec, Canada Director since January 2004Lead Director from January 2007 to January 2011 Independent Principal Occupation: Executive Consultant  |  Guy Marier has served as our Director since January 2004. Formerly President of Bell Québec (1999 to 2003), Mr. Marier completed his successful 33-year career at Bell (1) as Executive Vice-President of the Project Management Office, before retiring at the end of 2003. From 1988 to 1990, Mr. Marier headed Bell Canada International’s investments and projects in Saudi Arabia and, for the three following years, served as President of Télébec. He then returned to the parent company to hold various senior management positions. Guy Marier holds a Bachelor of Arts from the University of Montreal and a Bachelor of Business Administration from the Université du Québec à Montréal. |   |
|    Board/Committee Membership                                                                                                      | Attendance (2)                                                                                                                                                                              |    Principal Board Memberships |   |
|    Board of Directors   Audit Committee   Human Resources Committee   Independent Board of Directors | 8/85/55/57/7                                                                                                                                                                                | 100%100%100%100% |    – |   |
| Securities Held                                                                                                                              |                                                                                                                                                                                        |
| As at                                                                                                                                        | SubordinateVoting Shares (#)                                                                                                                                                                | DSUs (#) | Total Sharesand DSUs (#) | Total Market Value (3)of Shares (4) and DSUs(US$) |   |
|    August 31, 2011                                                                                                                 | 1,000                                                                                                                                                                                       | 31,942 | 32,942 | 220,382 |   |
| Options Held as at August 31, 2011                                                                                                           |                                                                                                                                                                                        |
| Date Granted                                                                                                                                 | Number (#)                                                                                                                                                                                  | Exercise Price (US$) | Total Unexercised (#) | Value of OptionsUnexercised (US$) (5) |   |
|    March 24, 2004                                                                                                                  | 12,500                                                                                                                                                                                      | 4.65 | 12,500 | 25,500 |   |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|
|   |   |   |   |   |

| (1)   | Bell is Canada's largest communications company, providing consumers with solutions to all their communications needs, including telephone services, wireless communications, high-speed Internet, digital television and voice over IP. Bell also offers integrated information and communications technology services to businesses and governments. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | From September 1, 2010 until November 1, 2011, Mr. Marier attended 7 meetings in person and 1 meeting by telephone. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (3)   | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Refers to Subordinate Voting Shares. |
|-----------------|--------------------------------------|

| (5)   | Indicates an aggregate value of “in-the-money” unexercised options held at the financial year ended August 31, 2011. “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price. The value of unexercised in-the-money options at financial year end is the difference between its exercise or base price and the market value of the underlying Subordinate Voting Share at August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|     SUSAN LOUISE SPRADLEY                                                                                                |                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                    |  Dallas, TexasUSA Director sinceOctober 2011 Independent Principal Occupation:Executive Consultant  |  Susan Louise Spradley was appointed a member of our Board of Directors in October 2011. She brings to EXFO more than 20 years of experience in the wireless telecommunications industry in which she has held senior executive positions in sales, product line management, operations, services and customer support. From 2007 to 2011, she was Head of the North American Region at Nokia Siemens Networks and also a member of the company’s Executive Board. Prior to joining Nokia Siemens Networks, from 1997 to 2005, Ms. Spradley held prominent leadership roles at Nortel Networks including President of Global Services and Operations, President of Global Product Line Management and North American Sales, and Vice-President of Customer Service and Operations. She also served as Vice-President of Marketing and Product Development for North America at Siemens Communications. In addition, she previously was a member of the National Security Telecommunications Advisory Committee reporting to the President of the United States. Susan Spradley holds a bachelor’s degree in Computer Science from the University of Kansas and completed the Advanced Management Program at Harvard University Business School.  |   |
|    Board/Committee Membership                                                                                                      | Attendance (1)                                                                                                               |    Principal Board Memberships |   |
|    Board of Directors   Audit Committee   Human Resources Committee   Independent Board of Directors | 1/11/11/11/1                                                                                                                 | 100%100%100%100% |    Museum of Nature and Science, Dallas, Texas   Tango Networks  |   |
| Securities Held                                                                                                                              |                                                                                                                         |
| As at                                                                                                                                        | SubordinateVoting Shares (#)                                                                                                 | DSUs (#) | Total Sharesand DSUs (#) | Total Market Value (2)of Shares (3) and DSUs(US$) |   |
|    August 31, 2011                                                                                                                 | –                                                                                                                      | – | – | – |   |
| Options Held as at August 31, 2011                                                                                                           |                                                                                                                         |
| Date Granted                                                                                                                                 | Number (#)                                                                                                                   | Exercise Price (US$) | Total Unexercised (#) | Value of OptionsUnexercised (US$) |   |
|    –                                                                                                                         | –                                                                                                                      | – | – | – |   |

|   |   |   |   |   |
|--------|--------|--------|--------|--------|
|   |   |   |   |   |

| (1)   | Ms. Spradley joined our Board of Directors in October 2011. From October 1, 2011 until November 1, 2011, Ms. Spradley attended 1 meeting in person. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The value of unvested DSUs at the financial year-end is the market value of the Subordinate Voting Shares on August 31, 2011, which was US$6.69 (CA$6.55). The market value of the Subordinate Voting Shares was calculated by using the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and on the NASDAQ National Market on August 31, 2011 using the noon buying rate of the Bank of Canada to convert the NASDAQ National Market closing price to Canadian dollars as required. The actual gains on vesting of DSUs will depend on the value of the Subordinate Voting Shares on the date of vesting. There can be no assurance that these values will be realized. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Refers to Subordinate Voting Shares. |
|-----------------|--------------------------------------|

----

Table of Contents

| (a) | is, as at the date hereof, or has been, within 10 years before the date hereof, a director, chief executive officer or chief financial officer of any company that (i) was subject to an order that was issued while such individual was acting in the capacity as director, chief executive officer or chief financial officer, or (ii) was subject to an order that was issued after such individual ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | is, as at the date hereof, or has been within 10 years before the date hereof, a director or executive officer of any company that, while such individual was acting in that capacity, or within a year of that individual ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | has, within the 10 years before the date hereof, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold his assets; or |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | has been subject to (i) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority, or (ii) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable security holder in deciding whether to vote for such individual. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

|  D. |  Employees |
|----------|-----------------|

|  E. |  Share Ownership |
|----------|-----------------------|

| Name                                                                                        | Subordinate VotingShares Owned                                                                                                               | Currently Exercisable Options Ownedas at November 1, 2011 | Total SubordinateVoting SharesBeneficially Owned (3) | Multiple VotingShares BeneficiallyOwned (3) | Total Percentageof Voting Power |
|---------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|------------------------------------------------------|---------------------------------------------|---------------------------------|
| In-the-money (1)                                                                            | Out-the-money (2)                                                                                                                            |
| Number                                                                                      | Percent                                                                                                                                      | Number                                                    | Percent                                              | Number                                      | Percent                         | Number | Percent | Number | Percent | Percent |
|    Germain Lamonde                                                                |        4,090,588   (4)                                                                               | 14.21                                                     | 79,160                                               | 17.54                                       | –                         | * | 4,169,748 | 14.45 |        31,643,000   (5) | 100 | 92.85 |
|    Pierre Plamondon                                                               |             59,889   (6)                                                         | *                                                         | 3,653                                                | *                                           | 5,383                           | 1.19 | 68,925 | * |                       – | – | * |
|    Pierre-Paul Allard                                                             |             8,000                                                                          | *                                                         | –                                              | *                                           | –                         | * | 8,000 | * |                       – | – | * |
|    Darryl Edwards                                                                 |         –                                                                                           | *                                                         | –                                              | *                                           | –                         | * | – | * |                       – | – | * |
|    Pierre Marcouiller                                                             |             5,000                                                                     | *                                                         | –                                              | *                                           | 1,037                           | * | 6,037 | * |                       – | – | * |
|    Guy Marier                                                                     |             1,000                                                                     | *                                                         | –                                              | *                                           | 12,500                          | 2.77 | 13,500 | * |                       – | – | * |
|    Susan Spradley                                                                 |         –                                                                                      | *                                                         | –                                              | *                                           | –                         | * | – | * |                       – | – | * |
|    David A. Thompson                                                              |             2,100                                                                | *                                                         | 12,500                                               | 2.77                                        | –                         | * | 14,600 | * |                       – | – | * |
|    Jon Bradley                                                                    |         –                                                                                           | *                                                         | –                                              | *                                           | 1,000                           | * | 1,000 | * |                       – | – | * |
|    Vivian Hudson                                                                  |         –                                                                                           | *                                                         | –                                              | *                                           | –                         | * | – | * |                       – | – | * |
|    Dana Yearian                                                                   |             3,137                                                                     | *                                                         | –                                              | *                                           | –                         | * | 3,137 | * |                       – | – | * |
|    Other executive   officers as a group                                |                         54,113 |  *                                                   |  17,228                                         |  3.82                                  |  3,230                     |  * |  74,571 |  * |                        – |  – |  * |
|    All of our Directors   and executive   officers as a group |          4,223,827                                                                                   |   14.67                                         |   112,541                                  |   24.94                           |   23,150              |   5.13 |   4,359,518 |   15,07 |          31,643,000 |   100 |   92.89 |

|   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |   |   |   |   |   |   |

| * | Less than 1%. |
|---|---------------|

| (1) | “In-the-money” options are options for which the market value of the underlying securities is higher than the exercise price at which such securities may be bought from the Corporation. As at November 1, 2011 the market value of a Subordinate Voting Share was US$5.87 or CA$6.04, as applicable. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | “Out-the-money” options are options for which the market value of the underlying securities is lower than the price of which such securities may be bought from the Corporation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (3) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Options that are currently exercisable or exercisable within sixty (60) days as at November 1, 2011 (including options that have an exercise price above the market price) are deemed to be outstanding and to be beneficially owned by the person holding such options for the purpose of computing the percentage ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. Accordingly, DSUs and RSUs are not included. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | The number of shares held by Germain Lamonde includes 4,000,000 subordinate voting shares held of record by G. Lamonde Investissements financiers inc. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | The number of shares held by Germain Lamonde includes 1,900,000 multiple voting shares held of record by Fiducie Germain Lamonde and 29,743,000 multiple voting shares held of record by G. Lamonde Investissements Financiers inc. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The number of shares held by Pierre Plamondon includes 6,874 subordinate voting shares held of record by Fiducie Pierre Plamondon. |
|-----|------------------------------------------------------------------------------------------------------------------------------------|

| Name                                             | Securities Under OptionsGranted (1) (#) | Exercise Price (2)(US$/Security) | Expiration Date                                    |
|--------------------------------------------------|-----------------------------------------|----------------------------------|----------------------------------------------------|
|    Germain Lamonde                     | 50,00017,94211,218                      | $1.58$4.51$4.76                  | September 25, 2012February 1, 2015December 6, 2015 |
|    Pierre Plamondon                    | 5,3833,653                              | $5.13$4.76                       | October 26, 2014December 6, 2015                   |
|    Pierre-Paul Allard                  | −                                 | −                          | −                                            |
|    Darryl Edwards                      | −                                 | −                          | −                                            |
|    Pierre Marcouiller                  | 1,037                                   | $12.69                           | December 1, 2011                                   |
|    Guy Marier                          | 12,500                                  | $4.65                            | March 24, 2014                                     |
|    Susan Spradley                      | −                                 | −                          | −                                            |
|    David A. Thompson                   | 12,500                                  | $3.51                            | October 27, 2013                                   |
|    Jon Bradley                         | 1,000                                   | $12.22                           | January 3, 2012                                    |
|    Vivian Hudson                       | −                                 | −                          | −                                            |
|    Dana Yearian                        | −                                 | −                          | −                                            |
|    Other Executive Officers as a group | 15,0003,2302,228                        | $1.58$5.13$4.76                  | September 25, 2012October 26, 2014December 6, 2015 |

|   |   |   |   |
|--------|--------|--------|--------|
|   |   |   |   |

| (1) | Underlying securities: subordinate voting shares |
|-----|--------------------------------------------------|

| (2) | The exercise price of options granted is determined based on the highest of the closing prices of the subordinate voting shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York on the grant date to convert the NASDAQ National Market closing price to Canadian dollars, as required. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                          | DSUs                                                                 | RSUs                                                                              |
|-------------------------------|----------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Number                        | Percentage                                                           | Estimated Average Value at the time of grant US$/DSU (1) | Number | Percentage | Fair Value at thetime of grantUS$/RSU (2) |
|    Germain Lamonde  |            – | –                                                                           | – |                 20,115(3) | 1.30% | 6.28 |
|                          |            – | –                                                                           | – |                 44,374(4) | 2.86% | 2.36 |
|                          |            – | –                                                                           | – |                 66,081(5) | 4.26% | 3.74 |
|                          |            – | –                                                                           | – |                 45,089(6) | 2.91% | 6.03 |
|                          |            – | –                                                                           | – |                 53,261(7) | 3.43% | 5.43 |
|    Pierre Plamondon |            – | –                                                                           | – |                  6,481      (3) | 0.42% | 6.28 |
|                          |            – | –                                                                           | – |                 14,039(4) | 0.91% | 2.36 |
|                          |            – | –                                                                           | – |                 20,339(8) | 1.31% | 2.36 |
|                          |            – | –                                                                           | – |                 16,794(5) | 1.08% | 3.74 |
|                          |            – | –                                                                           | – |                 13,019(6) | 0.84% | 6.03 |
|                          |            – | –                                                                           | – |                  8,857      (9) | 0.57% | 6.03 |
|                          |            – | –                                                                           | – |                 17,325(7) | 1.12% | 5.43 |

----

Table of Contents

| Name                                                                            | DSUs                                                                                                  | RSUs                                                                              |
|---------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Number                                                                          | Percentage                                                                                            | Estimated Average Value at the time of grant US$/DSU (1) | Number | Percentage | Fair Value at thetime of grantUS$/RSU (2) |
|    Pierre-Paul Allard                                                 |             16,270    (10)      | 14.7%                                                                             | 4.61 |              – | – |  – |
|    Darryl Edwards                                                     |           –                                        | –                                                                           | – |              – | – |  – |
|    Pierre Marcouiller                                                 |             31,942    (10)      | 29.0%                                                                             | 5.02 |              – | – |  – |
|    Guy Marier                                                         |             31,942    (10) | 29.0%                                                                             | 5.02 |              – | – |  – |
|    Susan Spradley                                                     |           –                                        | –                                                                           | – |              – | – |  – |
|    David A. Thompson                                                  |             30,144    (10)      | 27.3%                                                                             | 4.97 |              – | – |  – |
|    Jon Bradley                                                        |           –                                        | –                                                                           | – |                  4,117      (3) | 0.27% | 6.28 |
|                                                                            |           –                                        | –                                                                           | – |                 11,443(4) | 0.74% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                 25,416(8) | 1.64% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                 10,367(5) | 0.67% | 3.74 |
|                                                                            |           –                                        | –                                                                           | – |                  8,443      (6) | 0.54% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                  8,857      (9) | 0.57% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                 11,255(7) | 0.73% | 5.43 |
|    Vivian Hudson                                                      |           –                                        | –                                                                           | – |                  9,798      (4) | 0.63% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                 12,977(5) | 0.84% | 3.74 |
|                                                                            |           –                                        | –                                                                           | – |                 10,252(6) | 0.66% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                 11,272(9) | 0.73% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                  6,297      (11) | 0.41% | 8.28 |
|                                                                            |           –                                        | –                                                                           | – |                 13,972(7) | 0.90% | 5.43 |
|    Dana Yearian                                                       |           –                                        | –                                                                           | – |                  4,859      (3) | 0.31% | 6.28 |
|                                                                            |           –                                        | –                                                                           | – |                 15,690(4) | 1.01% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                 25,424(8) | 1.64% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                 15,241(5) | 0.98% | 3.74 |
|                                                                            |           –                                        | –                                                                           | – |                 11,609(6) | 0.75% | 6.03 |
|                                                                            |           –                                             | –                                                                           | – |                  8,857      (9) | 0.57% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                 15,322(7) | 0.99% | 5.43 |
|    Other executive officers as a group                                |           –                                        | –                                                                           | – |                 14,292(3) | 0.92% | 6.28 |
|           –                  | –                                                                                               | –                                                                           |                875      (12) | 0.06% | 4.16 |
|           –                  | –                                                                                               | –                                                                           |                 33,031(4) | 2.13% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                 54,236(8) | 3.50% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                  5,000      (13) | 0.32% | 3.22 |
|                                                                            |          –                                              | –                                                                           | – |                 39,302(5) | 2.53% | 3.74 |
|                                                                            |          –                                         | –                                                                           | – |                  3,200      (14) | 0.21% | 5.13 |
|                                                                            |          –                                         | –                                                                           | – |                  3,759      (15) | 0.24% | 5.32 |
|                                                                            |          –                                              | –                                                                           | – |                  9,565      (16) | 0.62% | 5.32 |
|                                                                            |          –                                              | –                                                                           | – |                 39,936(6) | 2.58% | 6.03 |
|                                                                            |          –                                              | –                                                                           | – |                 17,713(9) | 1.14% | 6.03 |
|                                                                            |          –                                              | –                                                                           | – |                  2,300      (17) | 0.15% | 9.32 |
|                                                                            |          –                                              | –                                                                           | – |                  8,226      (11) | 0.53% | 8.64 |
|                                                                            |          –                                              | –                                                                           | – |                 52,516(7) | 3.39% | 5.43 |
|    All of the directors and executive   officers as a group |           –                                        | –                                                                           | – |                 49,864(3) | 3.22% | 6.28 |
|           –                  | –                                                                                               | –                                                                           |                875      (12) | 0.06% | 4.16 |
|           –                  | –                                                                                               | –                                                                           |               128,375(4) | 8.28% | 2.36 |
|                                                                            |           –                                   | –                                                                           | – |               125,415(8) | 8.09% | 2.36 |
|                                                                            |           –                                        | –                                                                           | – |                  5,000      (13) | 0.32% | 3.22 |
|                                                                            |          –                                         | –                                                                           | – |               160,762(5) | 10.37% | 3.74 |
|                                                                            |          –                                              | –                                                                           | – |                  3,200      (14) | 0.21% | 5.13 |
|                                                                            |          –                                         | –                                                                           | – |                  3,759      (15) | 0.24% | 5.32 |
|                                                                            |           –                                        | –                                                                           | – |                  9,565      (16) | 0.62% | 5.32 |
|                                                                            |           –                                        | –                                                                           | – |               128,348(6) | 8.28% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                 55,556(9) | 3.58% | 6.03 |
|                                                                            |           –                                        | –                                                                           | – |                  2,300      (17) | 0.15% | 9.32 |
|                                                                            |           –                                   | –                                                                           | – |                  6,297      (11) | 0.41% | 5.68 |
|                                                                            |           –                                        | –                                                                           | – |                  8,226      (11) | 0.53% | 8.64 |
|                                                                            |           –                                        | –                                                                           | – |               163,651(7) | 10.55% | 5.43 |
|    Total                                                              |           110,298                                        | 100%                                                                              | 4.94 |             3851,193 | 54.89% | 4.40 |

|   |   |   |   |   |   |   |
|--------|--------|--------|--------|--------|--------|--------|
|   |   |   |   |   |   |   |

| (1)   | The estimated average value at the time of grant of a DSU is the average of the estimated value at the time of grant of a DSU which is determined based on the highest of the closing prices of the Subordinate Voting Shares on the Toronto Stock Exchange and the NASDAQ National Market on the last trading day preceding the grant date, using the noon buying rate of the Federal Reserve Bank of New York (for grants of DSUs prior to January 1, 2009) or the Bank of Canada (for grants of DSUs on or after January 1, 2009) on the grant date to convert the NASDAQ National Market closing price to Canadian dollars, as required. The value at vesting of a DSU is equivalent to the market value of a Subordinate Voting Share when a DSU is converted to such Subordinate Voting Share. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The fair value at the time of grant of a RSU is equal to the market value of Subordinate Voting Shares at the time RSUs are granted. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| (3)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2007 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2008 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2009 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2010 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2011 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2008 but are subject to early vesting on the third anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the early vesting is up to 100% of the units on the third anniversary date of the grant. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Those RSUs will vest on the fifth anniversary date of the grant in October 2010 but are subject to early vesting on the third or fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the early vesting is up to 100% of the units on the third or fourth anniversary date of the grant. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Those DSUs will vest at the time Director ceases to be a member of the Board of the Corporation. |
|------------------|--------------------------------------------------------------------------------------------------|

| (11)   | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in April 2011. |
|------------------|---------------------------------------------------------------------------------------------------------------------|

| (12)   | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2008. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| (13)   | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2009. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| (14)   | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2010. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

| (15)   | Those RSUs will vest at a rate of 1/3 annually commencing on the third anniversary date of the grant in July 2010. |
|------------------|--------------------------------------------------------------------------------------------------------------------|

| (16)   | Those RSUs will vest on the fifth anniversary date of the grant in July 2010 but are subject to early vesting on the third and fourth anniversary date of the grant on the attainment of performance objectives as determined by the Board of Directors. Accordingly, subject to the attainment of performance objectives, the first early vesting is up to 1/3 of the units on the third anniversary date of the grant and the second early vesting is up to 50% of the remaining units on the fourth anniversary date of the grant. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17)   | Those RSUs will vest at a rate of 1/2 annually commencing on the third anniversary date of the grant in January 2011. |
|------------------|-----------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| Item 7.   | Major Shareholders and Related Party Transactions |
|---------------------|---------------------------------------------------|

|  A. |  Major Shareholders |
|----------|--------------------------|

|                                           |   | Multiple Voting SharesBeneficially Owned (1) |       |   | Subordinate Voting SharesBeneficially Owned (1) |   |    | Total Percentage of Voting Power |   |
|------------------------------------------------|--------|----------------------------------------------|------------|--------|-------------------------------------------------|--------|---------|-------------------------------------------------|--------|
|                                           |   |                                         |       |   |                                            |   |    |                                            |   |
| Name                                           |   | Number                                       |       |   | Percent                                         |   |    | Number                                          |   |   | Percent |   |   | Percent |   |
|                                           |   |                                         |       |   |                                            |   |    |                                            |   |   |   |   |   |   |   |
| Germain Lamonde (2)                            |   |                                         | 31,643,000 |   |                                            |   | 100     | %                                               |   |   | 4,090,588 |   |   |   | 14.21 | % |   |   | 92.85 | % |
| Fiducie Germain Lamonde (3)                    |   |                                         | 1,900,000  |   |                                            |   | 6       | %                                               |   |   | – |   |   |   | – |   |   |   | 5.50 | % |
| G. Lamonde Investissements Financiers inc. (4) |   |                                         | 29,743,000 |   |                                            |   | 94      | %                                               |   |   | 4,000,000 |   |   |   | 13.90 | % |   |   | 86.16 | % |
| EdgePoint Investment Group, Inc.               |   |                                         | –    |   |                                            |   | – |                                            |   |   | 2,891,500 |   |   |   | 10.05 | % |   |   | * |   |
| Brown Investment Advisory, Inc.                |   |                                         | –    |   |                                            |   | – |                                            |   |   | 1,558,333 |   |   |   | 5.41 | % |   |   | * |   |

|   |   |   |   |
|--------|--------|--------|--------|
|   |   |   |   |

| * | Less than 1% |
|---|--------------|

| (1) | Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Options that are currently exercisable within 60 days of November 1, 2011 (including options that have an exercise price above the market price) are deemed to be outstanding and to be beneficially owned by the person holding such options for the purpose of computing the percentage ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The number of shares held by Germain Lamonde includes 1,900,000 multiple voting shares held of record by Fiducie Germain Lamonde, 29,743,000 multiple voting shares held of record by G. Lamonde Investissements Financiers inc. and 4,000,000 subordinate voting shares held of record by G. Lamonde Investissements Financiers inc. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Fiducie Germain Lamonde is a family trust for the benefit of Mr. Lamonde and members of his family. |
|-----------------|-----------------------------------------------------------------------------------------------------|

| (4)   | G. Lamonde Investissements Financiers inc. is a company controlled by Mr. Lamonde. |
|-----------------|------------------------------------------------------------------------------------|

----

Table of Contents

|  B. |  Related Party Transactions |
|----------|----------------------------------|

|  C. |  Interests of Experts and Counsel |
|----------|----------------------------------------|

----

Table of Contents

| Item 8.   | Financial Information |
|---------------------|-----------------------|

|  A. |  Consolidated Statements and Other Financial Information |
|----------|---------------------------------------------------------------|

|                                    |   | Years ended August 31, |    |
|-----------------------------------------|--------|------------------------|---------|
|                                    |   |                   |    |   |   |   |   |   |   |
|                                    |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                                    |   |                   |    |   |   |   |   |   |   |
| Balance – Beginning of year       |   | $                      | 21,277  |   |   | $ | 15,458 |   |   | $ | 14,393 |   |
| Change charged to earnings              |   |                   | 5,049   |   |   |   | 3,185 |   |   |   | 777 |   |
| Change in tax rates                     |   |                   | − |   |   |   | − |   |   |   | 366 |   |
| Business combination/disposal           |   |                   | 6,823   |   |   |   | 3,065 |   |   |   | − |   |
| Foreign currency translation adjustment |   |                   | 1,367   |   |   |   | (431 | ) |   |   | (78 | ) |
|                                    |   |                   |    |   |   |   |   |   |   |   |   |   |
| Balance – End of year             |   | $                      | 34,516  |   |   | $ | 21,277 |   |   | $ | 15,458 |   |

|           |   | Years ended August 31, |    |
|----------------|--------|------------------------|---------|
|           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export Sales   |   | $                      | 238,757 |   |   |   | 89 | % |   | $ | 184,479 |   |   |   | 91 | % |   | $ | 135,751 |   |   |   | 89 | % |
| Domestic Sales |   |                   | 30,986  |   |   |   | 11 |   |   |   | 18,278 |   |   |   | 9 |   |   |   | 17,331 |   |   |   | 11 |   |
|           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           |   | $                      | 269,743 |   |   |   | 100 | % |   | $ | 202,757 |   |   |   | 100 | % |   | $ | 153,082 |   |   |   | 100 | % |

----

Table of Contents

----

Table of Contents

|  B. |  Significant changes |
|----------|---------------------------|

----

Table of Contents

| Item 9.   | The Offer and Listing |
|---------------------|-----------------------|

|  A. |  Offer and Listing Details |
|----------|---------------------------------|

|                                 |   | NASDAQ (US$) |   |   | TSX (CA$) |   |
|--------------------------------------|--------|--------------|--------|--------|-----------|--------|
|                                 |   | High         |   |   | Low       |   |   | High |   |   | Low |   |
|                                 |   |         |   |   |      |   |   |   |   |   |   |   |
| September 1, 2006 to August 31, 2007 |   |         | 7.57   |   |      |   | 4.89 |   |   |   | 8.85 |   |   |   | 5.55 |   |
| September 1, 2007 to August 31, 2008 |   |         | 7.28   |   |      |   | 3.92 |   |   |   | 7.35 |   |   |   | 3.97 |   |
| September 1, 2008 to August 31, 2009 |   |         | 4.73   |   |      |   | 2.13 |   |   |   | 5.16 |   |   |   | 2.50 |   |
| September 1, 2009 to August 31, 2010 |   |         | 6.59   |   |      |   | 2.81 |   |   |   | 6.70 |   |   |   | 3.10 |   |
| September 1, 2010 to August 31, 2011 |   |         | 12.96  |   |      |   | 5.28 |   |   |   | 12.56 |   |   |   | 5.50 |   |
|                                 |   |         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| 2010 1st Quarter                     |   |         | 3.85   |   |      |   | 2.81 |   |   |   | 4.13 |   |   |   | 3.10 |   |
| 2010 2nd Quarter                     |   |         | 6.00   |   |      |   | 3.65 |   |   |   | 6.25 |   |   |   | 3.82 |   |
| 2010 3rd Quarter                     |   |         | 6.59   |   |      |   | 4.79 |   |   |   | 6.70 |   |   |   | 5.12 |   |
| 2010 4th Quarter                     |   |         | 5.99   |   |      |   | 4.95 |   |   |   | 6.15 |   |   |   | 5.25 |   |
|                                 |   |         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| 2011 1st Quarter                     |   |         | 6.35   |   |      |   | 5.28 |   |   |   | 6.44 |   |   |   | 5.50 |   |
| 2011 2nd Quarter                     |   |         | 11.90  |   |      |   | 6.19 |   |   |   | 11.83 |   |   |   | 6.31 |   |
| 2011 3rd Quarter                     |   |         | 12.96  |   |      |   | 7.89 |   |   |   | 12.56 |   |   |   | 7.61 |   |
| 2011 4th Quarter                     |   |         | 9.47   |   |      |   | 5.90 |   |   |   | 9.27 |   |   |   | 5.85 |   |
|                                 |   |         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| 2011 May                             |   |         | 10.10  |   |      |   | 8.42 |   |   |   | 9.66 |   |   |   | 8.50 |   |
| 2011 June                            |   |         | 9.47   |   |      |   | 7.44 |   |   |   | 9.27 |   |   |   | 7.22 |   |
| 2011 July                            |   |         | 8.18   |   |      |   | 7.26 |   |   |   | 7.89 |   |   |   | 6.94 |   |
| 2011 August                          |   |         | 7.67   |   |      |   | 5.90 |   |   |   | 7.52 |   |   |   | 5.85 |   |
| 2011 September                       |   |         | 8.23   |   |      |   | 6.13 |   |   |   | 8.24 |   |   |   | 6.40 |   |
| 2011 October                         |   |         | 6.21   |   |      |   | 5.42 |   |   |   | 6.18 |   |   |   | 5.51 |   |
| 2011 November                        |   |         | 6.27   |   |      |   | 5.60 |   |   |   | 6.34 |   |   |   | 5.72 |   |
| (until November 14)                  |   |         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |

|  C. |  Markets |
|----------|---------------|

----

Table of Contents

| Item 10.   | Additional Information |
|----------------------|------------------------|

|  A. |  Share Capital |
|----------|---------------------|

|  B. |  Memorandum and Articles of Association |
|----------|----------------------------------------------|

|  C. |  Material Contracts |
|----------|--------------------------|

|  D. |  Exchange Controls |
|----------|-------------------------|

|  E. |  Taxation |
|----------|----------------|

----

Table of Contents

|   | (a) | an individual citizen or resident of the United States; |
|--------|-----|---------------------------------------------------------|

|   | (b) | a corporation created or organized under the laws of the United States or any state thereof and the District of Columbia; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | an estate the income of which is subject to United States federal income taxation regardless of its source; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (d) | a trust if (1) a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons as described in Section 7701 (a) (30) of the Code have authority to control all substantial decisions of the trust or (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | any other person whose worldwide income or gain is otherwise subject to U.S. federal income taxation on a net income basis. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | the Code; |
|--------------------|-----------|

| ·   | U.S. judicial decisions; |
|--------------------|--------------------------|

| ·   | administrative pronouncements; |
|--------------------|--------------------------------|

| ·   | existing and proposed Treasury regulations; and |
|--------------------|-------------------------------------------------|

| ·   | the Canada – U.S. Income Tax Treaty. |
|--------------------|--------------------------------------------|

----

Table of Contents

----

Table of Contents

| ·   | the holder’s holding period for the subordinate voting shares, with a preferential rate available for subordinate voting shares held for more than one year; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the holder’s marginal tax rate for ordinary income. |
|--------------------|-----------------------------------------------------------|

| ·   | such gain is effectively connected with the conduct by such Non-U.S. Holder of a trade or business in the United States; or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ·   | in the case of any gain realized by an individual Non-U.S. Holder, such Non-U.S. Holder is present in the United States for 183 days or more in the taxable year of such sale and certain other conditions are met. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | at least 75% of our gross income for the taxable year is passive income; or |
|--------------------|-----------------------------------------------------------------------------|

| ·   | at least 50% of the average value of our assets is attributable to assets that produce or are held for the production of passive income. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | dividends; |
|--------------------|------------|

| ·   | interest; |
|--------------------|-----------|

| ·   | rents or royalties, other than certain rents or royalties derived from the active conduct of trade or business; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | annuities; and |
|--------------------|----------------|

| ·   | gains from assets that produce passive income. |
|--------------------|------------------------------------------------|

| ·   | any gain realized on the sale or other disposition of subordinate voting shares; and |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | any “excess distribution” by us to the U.S. Holder. |
|--------------------|-----------------------------------------------------------------|

| ·   | the gain or excess distribution would be allocated ratably over the U.S. Holder’s holding period for the subordinate voting shares; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the amount allocated to the taxable year in which the gain or excess distribution was realized and to taxable years prior to the first year in which we were classified as a PFIC would be taxable as ordinary income; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the amount allocated to each other prior year would be subject to tax as ordinary income at the highest tax rate in effect for that year, and the interest charge generally applicable to underpayments of tax would be imposed in respect of the tax attributable to each such year. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | is resident in the United States and not resident in Canada, |
|--------------------|--------------------------------------------------------------|

| ·   | holds the subordinate voting shares as capital property, |
|--------------------|----------------------------------------------------------|

| ·   | does not have a “permanent establishment” or “fixed base” in Canada, as defined in the Convention; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | deals at arm’s length with us. Special rules, which are not discussed below, may apply to “financial institutions”, as defined in the ITA, and to non-resident insurers carrying on an insurance business in Canada and elsewhere. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| F. |  Dividends and Paying Agents |
|----|-----------------------------------|

|  G. |  Statement by Experts |
|----------|----------------------------|

----

Table of Contents

|  H. |  Documents on Display |
|----------|----------------------------|

|  I. |  Subsidiary Information |
|----------|------------------------------|

----

Table of Contents

| Item 11.   | Qualitative and Quantitative Disclosures about Market Risk |
|----------------------|------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Years ending August 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2012                    |   |   | 2013 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                    |   |   |   |   |
| Forward exchange contracts to sell US dollars in exchange for Canadian dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                    |   |   |   |   |
| Contractual amounts                                                                                                                |   | $                       | 27,500 |   |   | $ | 11,400 |   |
| Weighted average contractual forward rates                                                                                         |   |                    | 1.0555 |   |   |   | 1.0063 |   |

----

Table of Contents

|                                        |   | As at August 31,                                  |   |
|---------------------------------------------|--------|---------------------------------------------------|--------|
|                                        |   |                                              |   |   |   |   |   |   |   |   |   |   |
|                                        |   | 2011                                              |   |   | 2010 |   |
|                                        |   |                                              |   |   |   |   |   |   |   |   |   |   |
|                                        |   | Carrying/nominalamount(in thousandsof US dollars) |   |   | Carrying/nominalamount(in thousandsof euros) |   |   | Carrying/nominalamount(in thousandsof US dollars) |   |   | Carrying/nominalamount(in thousandsof euros) |   |
|                                        |   |                                              |   |   |   |   |   |   |   |   |   |   |
| Financial assets                            |   |                                              |   |   |   |   |   |   |   |   |   |   |
| Cash                                        |   | $                                                 | 10,553 |   |   | € | 1,502 |   |   | $ | 6,947 |   |   | € | 1,287 |   |
| Accounts receivable                         |   |                                              | 25,040 |   |   |   | 4,332 |   |   |   | 30,218 |   |   |   | 3,860 |   |
|                                        |   |                                              | 35,593 |   |   |   | 5,834 |   |   |   | 37,165 |   |   |   | 5,147 |   |
| Financial liabilities                       |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities    |   |                                              | 8,706  |   |   |   | 37 |   |   |   | 8,932 |   |   |   | 438 |   |
| Forward exchange contracts (nominal amount) |   |                                              | 5,400  |   |   |   | – |   |   |   | 5,900 |   |   |   | – |   |
|                                        |   |                                              | 14,106 |   |   |   | 37 |   |   |   | 14,832 |   |   |   | 438 |   |
| Net exposure                                |   | $                                                 | 21,487 |   |   | € | 5,797 |   |   | $ | 22,333 |   |   | € | 4,709 |   |

| ·   | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $2.1 million, or $0.03 per diluted share, and $1.9 million, or $0.03 per diluted share, as at August 31, 2010 and 2011 respectively. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $621,000, or $0.01 per diluted share, and $831,000, or $0.01 per diluted share, as at August 31, 20010 and 2011 respectively. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) comprehensive income by $3.2 million and $2.4 million as at August 31, 2010 and 2011 respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                                                                                                                                                                                                                                    |   | As at August 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                    |   |             |   |   |   |   |
|                                                                                                                                                                                                                                                    |   | 2011             |   |   | 2010 |   |
|                                                                                                                                                                                                                                                    |   |             |   |   |   |   |
| Commercial paper denominated in Canadian dollars, bearing interest at annual rates of 1.0% to 1.3% in 2011 and 0.6% to 0.9% in 2010, maturing between September and November 2011 in fiscal 2011, and in September and October 2010 in fiscal 2010 |   | $                | 31,765 |   |   | $ | 6,383 |   |
| Bankers acceptance denominated in Canadian dollars, bearing interest at annual rates of 1.0% to 1.2% in fiscal 2011 and 0.8% in 2010, maturing in September and November 2011 in fiscal 2011, and September 2010 in fiscal 2010                    |   |             | 15,326 |   |   |   | 3,996 |   |
|                                                                                                                                                                                                                                                    |   | $                | 47,091 |   |   | $ | 10,379 |   |

----

Table of Contents

|                                                                                                                                |   | As at August 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                |   |             |   |   |   |   |
|                                                                                                                                |   | 2011             |   |   | 2010 |   |
|                                                                                                                                |   |             |   |   |   |   |
| Current                                                                                                                             |   | $                | 33,149 |   |   | $ | 38,663 |   |
| Past due, 0 to 30 days                                                                                                              |   |             | 7,299  |   |   |   | 6,787 |   |
| Past due, 31 to 60 days                                                                                                             |   |             | 2,590  |   |   |   | 1,991 |   |
| Past due, more than 60 days, less allowance for doubtful accounts of $1,243 and $1,245 as at August 31, 2010 and 2011 respectively. |   |             | 2,113  |   |   |   | 2,749 |   |
| Total accounts receivable                                                                                                           |   | $                | 45,151 |   |   | $ | 50,190 |   |

|                                     |   | As at August 31, 2011 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   |                  |    |   |   |   |   |   |   |
|                                     |   | 0-12months            |    |   | 13-24months |   |   | 25-36months |   |
|                                     |   |                  |    |   |   |   |   |   |   |
| Bank loan                                |   | $                     | 784     |   |   | $ | – |   |   | $ | – |   |
| Accounts payable and accrued liabilities |   |                  | 30,319  |   |   |   | – |   |   |   | – |   |
| Long-term debt                           |   |                  | 645     |   |   |   | 645 |   |   |   | 323 |   |
| Other liabilities                        |   |                  | – |   |   |   | 201 |   |   |   | – |   |
| Forward exchange contracts               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Outflow                                  |   |                  | 27,500  |   |   |   | 11,400 |   |   |   | – |   |
| Inflow                                   |   |                  | (29,668 | ) |   |   | (11,725 | ) |   |   | – |   |
| Total                                    |   | $                     | 29,580  |   |   | $ | 521 |   |   | $ | 323 |   |

|                                     |   | As at August 31, 2010 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |
|                                     |   | 0-12months            |    |   | 13-24months |   |   | 25-36months |   |   | Over 36months |   |
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | 29,711  |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |
| Long-term debt                           |   |                  | 568     |   |   |   | 568 |   |   |   | 568 |   |   |   | 283 |   |
| Other liabilities                        |   |                  | – |   |   |   | 295 |   |   |   | – |   |   |   | – |   |
| Forward exchange contracts               |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outflow                                  |   |                  | 29,500  |   |   |   | 20,400 |   |   |   | 1,500 |   |   |   | – |   |
| Inflow                                   |   |                  | (30,141 | ) |   |   | (20,662 | ) |   |   | (1,508 | ) |   |   | – |   |
| Total                                    |   | $                     | 29,638  |   |   | $ | 601 |   |   | $ | 560 |   |   | $ | 283 |   |

----

Table of Contents

| Item 12.   | Description of Securities Other than Equity Securities |
|----------------------|--------------------------------------------------------|

PART II.

| Item 13.   | Defaults, Dividend Arrearages and Delinquencies |
|----------------------|-------------------------------------------------|

| Item 14.   | Material Modifications to the Rights of Security Holders and Use of Proceeds |
|----------------------|------------------------------------------------------------------------------|

| Item 15.   | Controls and Procedures |
|----------------------|-------------------------|

1

----

  
| 1 | Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in Canada (“Canadian GAAP”) and significant differences in measurement and disclosure from generally accepted accounting principles in United States (“U.S. GAAP”) are set out in note 22 to our consolidated financial statements included elsewhere in this Annual Report. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

| Item 16.   | [Reserved] |
|----------------------|------------|

| Item 16A.   | Audit Committee Financial Expert |
|-----------------------|----------------------------------|

| Item 16B.   | Code of Ethics |
|-----------------------|----------------|

| ·   | Code of Ethics for our Principal Executive Officer and Senior Financial Officers; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Board of Directors Corporate Governance Guidelines; |
|--------------------|-----------------------------------------------------|

| ·   | Ethics and Business Conduct Policy; |
|--------------------|-------------------------------------|

| ·   | Statement of Reporting Ethical Violations (Whistle Blower). |
|--------------------|-------------------------------------------------------------|

| Item 16C.   | Principal Accountant Fees and Services |
|-----------------------|----------------------------------------|

----

Table of Contents

| Item 16D.   | Exemptions from the Listing Standards for Audit Committees |
|-----------------------|------------------------------------------------------------|

| Item 16E.   | Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
|-----------------------|------------------------------------------------------------------------|

----

Table of Contents

| Period           | (a) Total Numberof Shares (orUnits) Purchased(#) | (b) Average Price Paidper Share (or Units) | (c) Total Number of Shares(or Units) Purchased as Partof Publicly AnnouncedPlans or Programs(#) | (d) Maximum Number ofShares (or Units) that MayYet Be Purchased Underthe Plans or Programs(#) |
|------------------|--------------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| NASDAQ(US$)      | TSX(CA$)                                         |
| From Oct. 1 2011 | 21,664                                           | –                                    | 5.62                                                                                                                | 21,664                                                                                        | 1,990,898 |
| To Oct. 1, 2011  |
| From Nov. 1 2011 | 13,282                                           | –                                    | 5.91                                                                                                                | 13,282                                                                                        | 1,977,616 |
| To Nov. 9, 2011  |
| Total            | 34,946                                           |                                       | 34,946                                                                                                              |                                                                                          |

| Item 16F.   | Change in Registrant’s Certifying Accountant |
|-----------------------|----------------------------------------------------|

| Item 16G.   | Corporate Governance |
|-----------------------|----------------------|

PART III

| Item 17.   | Financial Statements |
|----------------------|----------------------|

| Item 18.   | Financial Statements |
|----------------------|----------------------|

----

Table of Contents

| Item 19.   | Exhibits |
|----------------------|----------|

| Number | Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1    | Amended Articles of Incorporation of EXFO (incorporated by reference to Exhibit 3.1 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                           |
| 1.2    | Amended By-laws of EXFO (incorporated by reference to Exhibit 1.2 of EXFO’s Annual Report on Form-20F dated January 15, 2003, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                     |
| 1.3    | Amended and Restated Articles of Incorporation of EXFO (incorporated by reference to Exhibit 1.3 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                                                                                                                                                                                                                     |
| 1.4    | Certificate of Amendment, Canada Business Corporations Act (incorporated by reference to Exhibit 10.1 of EXFO’s Annual Report on Form 20-F dated November 25, 2009, File No. 000-30895).                                                                                                                                                                                                                                                                                               |
| 1.5    | Certificate of Amendment (Change of Name), Canada Business Corporations Act (incorporated by reference to Exhibit 1.5 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                                                                                                                                                                                                                                                                               |
| 2.1    | Form of Subordinate Voting Share Certificate (incorporated by reference to Exhibit 4.1 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                   |
| 2.2    | Form of Registration Rights Agreement between EXFO and Germain Lamonde dated July 6, 2000 ) (incorporated by reference to Exhibit 10.13 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                       |
| 3.1    | Form of Trust Agreement among EXFO, Germain Lamonde, GEXFO Investissements Technologiques inc., Fiducie Germain Lamonde and G. Lamonde Investissements Financiers inc. (incorporated by reference to Exhibit 4.2  of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                   |
| 4.1    | Agreement of Merger and Plan of Reorganization, dated as of November 4, 2000, by and among EXFO, EXFO Sub, Inc., EXFO Burleigh Instruments, Inc., Robert G. Klimasewski, William G. May, Jr., David J. Farrell and William S. Gornall (incorporated by reference to Exhibit 4.1 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                                      |
| 4.2    | Amendment No. 1 to Agreement of Merger and Plan of Agreement, dated as of December 20, 2000, by and among EXFO, EXFO Sub, Inc., EXFO Burleigh Instruments, Inc., Robert G. Klimasewski, William G. May, Jr., David J. Farrell and William S. Gornall (incorporated by reference to Exhibit 4.2 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                       |
| 4.3    | Agreement of Merger, dated as of August 20, 2001, by and among EXFO, Buyer Sub, and Avantas Networks Corporation and Shareholders of Avantas Networks corporation (incorporated by reference to Exhibit 4.3 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                          |
| 4.4    | Amendment No. 1 dated as of November 1, 2002 to Agreement of Merger, dated as of August 20, 2001, by and among EXFO, 3905268 Canada Inc., Avantas Networks Corporation and Shareholders of Avantas Networks (incorporated by reference to Exhibit 4.4 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                |
| 4.5    | Offer to purchase shares of Nortech Fibronic Inc., dated February 6, 2000 among EXFO, Claude Adrien Noel, 9086-9314 Québec inc., Michel Bédard, Christine Bergeron and Société en Commandite Capidem Québec Enr. and Certificate of Closing, dated February 7, 2000 among the same parties (including summary in English) (incorporated by reference to Exhibit 10.2 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956). |
| 4.6    | Share Purchase Agreement, dated as of March 5, 2001, among EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation (incorporated by reference to Exhibit 4.1 of EXFO’s Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).                                                                                                                                                                                                 |
| 4.7    | Amendment Number One, dated as of March 15, 2001, to Share Purchase Agreement, dated as of March 5, 2001, among EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation. (incorporated by reference to Exhibit 4.2 of EXFO’s Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).                                                                                                                                           |
| 4.8    | Share Purchase Agreement, dated as of November 2, 2001 between JDS Uniphase Inc. and 3905268 Canada Inc. (incorporated by reference to Exhibit 4.8 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                                                                                   |
| 4.9    | Intellectual Property Assignment and Sale Agreement between EFOS Inc., EXFO Electro-Optical Engineering, Inc., John Kennedy, Glenn Harvey and EFOS Corporation. (incorporated by reference to Exhibit 4.3 of EXFO’s Registration Statement on Form F-3 filed on July 13, 2001, File No. 333-65122).                                                                                                                                                                                    |

----

Table of Contents

| Number | Exhibit |
|--------|---------|

| 4.10 | Offer to acquire a building, dated February 23, 2000, between EXFO and Groupe Mirabau inc. and as accepted by Groupe Mirabau inc. on February 24, 2000 (including summary in English) (incorporated by reference to Exhibit 10.3 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                 |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.11 | Lease Agreement, dated December 1, 1996, between EXFO and GEXFO Investissements Technologiques inc., as assigned to 9080-9823 Québec inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.4 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                    |
| 4.12 | Lease Agreement, dated March 1, 1996, between EXFO and GEXFO Investissements Technologiques inc., as assigned to 9080-9823 Québec inc. on September 1, 1999 (including summary in English) (incorporated by reference to Exhibit 10.5 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                       |
| 4.13 | Lease renewal of the existing leases between 9080-9823 Québec inc. and EXFO, dated November 30, 2001(incorporated by reference to Exhibit 4.13 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                     |
| 4.14 | Loan Agreement between EXFO and GEXFO Investissements Technologiques inc., dated May 11, 1993, as assigned to 9080-9823 Québec inc. on September 1, 1999 (including summary in English)  (incorporated by reference to Exhibit 10.9 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                          |
| 4.15 | Resolution of the Board of Directors of EXFO, dated September 1, 1999, authorizing EXFO to acquire GEXFO Distribution Internationale inc. from GEXFO Investissements Technologiques inc. (including summary in English) (incorporated by reference to Exhibit 10.10 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                              |
| 4.16 | Form of Promissory Note of EXFO issued to GEXFO Investissements Technologiques inc. dated June 27, 2000 )  (incorporated by reference to Exhibit 10.12 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                            |
| 4.17 | Term Loan Offer, dated March 28, 2000, among EXFO and National Bank of Canada as accepted by EXFO on April 3, 2000 (including summary in English) (incorporated by reference to Exhibit 10.11 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                    |
| 4.18 | Employment Agreement of Germain Lamonde dated May 29, 2000 (incorporated by reference to Exhibit 10.15 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.19 | Employment Agreement of Bruce Bonini dated as of September 1, 2000 (incorporated by reference to Exhibit 4.24 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.20 | Employment Agreement of Juan-Felipe Gonzalez dated as of September 1, 2000 (incorporated by reference to Exhibit 4.25 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.21 | Employment Agreement of David J. Farrell dated as of December 20, 2000 (incorporated by reference to Exhibit 4.26 of EXFO’s Annual Report on Form 20-F dated January 18, 2002, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.22 | Deferred Profit Sharing Plan, dated September 1, 1998 (incorporated by reference to Exhibit 10.6 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.23 | Stock Option Plan, dated May 25, 2000 (incorporated by Reference to Exhibit 10.7 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 4.24 | Share Plan, dated April 3, 2000 (incorporated by reference to Exhibit 10.8 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.25 | Directors’ Compensation Plan (incorporated by reference to Exhibit 10.17 of EXFO’s Registration Statement on Form F-1 filed on June 9, 2000, File No. 333-38956).                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.26 | Restricted Stock Award Plan, dated December 20, 2000 (incorporated by reference to Exhibit 4.21 of EXFO’s Annual Report on Form 20-F dated January 18, 2001, File No. 000-30895).                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.27 | Asset Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., EXFO Gnubi Products Group Inc., gnubi communications, L.P., gnubi communications General Partner, LLC, gnubi communications Limited Partner, LLC, gnubi communications, Inc., Voting Trust created by The Irrevocable Voting Trust Agreement Among Carol Abraham Bolton, Paul Abraham and James Ray Stevens, James Ray Stevens and Daniel J. Ernst dated September 5, 2002 (incorporated by reference to Exhibit 4.30 of EXFO’s Annual Report on Form 20-F dated January 15, 2003, File No. 000-30895). |

----

Table of Contents

| Number | Exhibit |
|--------|---------|

| 4.28 | EXFO Protocol Inc. Executive Employment Agreement with Sami Yazdi signed November 2, 2001 (incorporated by reference to Exhibit 4.28 of EXFO’s Annual Report on Form 20-F dated January 15, 2003, File No. 000-30895).                                                                                                                                                         |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.29 | Second Amending Agreement to the Employment Agreement of Bruce Bonini dated as of September 1, 2002, (incorporated by reference to Exhibit 4.29 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                   |
| 4.30 | Severance and General Release Agreement with Bruce Bonini dated August 8, 2003, (incorporated by reference to Exhibit 4.30 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                        |
| 4.31 | Separation Agreement and General Release with Sami Yazdi dated April 1, 2003, (incorporated by reference to Exhibit 4.31 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                          |
| 4.32 | Executive Employment Agreement of James Stevens dated as of October 4, 2003, (incorporated by reference to Exhibit 4.32 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                           |
| 4.33 | Termination Terms for John Holloran Jr. dated May 28, 2003, (incorporated by reference to Exhibit 4.33 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                            |
| 4.34 | Employment Agreement of Pierre Plamondon dated as of September 1, 2002, (incorporated by reference to Exhibit 4.34 of EXFO’s Annual Report on Form 20-F dated January 15, 2004, File No. 000-30895).                                                                                                                                                                                |
| 4.35 | Long-Term Incentive Plan, dated May 25, 2000, amended in October 2004 and effective January 12, 2005 (incorporated by reference to Exhibit 4.35 of EXFO’s Annual Report on Form 20-F dated November 29, 2005, File No. 000-30895).                                                                                                                                                  |
| 4.36 | Deferred Share Unit Plan, effective January 12, 2005 (incorporated by reference to Exhibit 4.36 of EXFO’s Annual Report on Form 20-F dated November 29, 2005, File No. 000-30895).                                                                                                                                                                                                  |
| 4.37 | Asset Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., Consultronics Limited., Andre Rekai, Consultronics Europe Limited, Consultronics Development Kft. and Consultronics Inc. dated January 5, 2006 (incorporated by reference to Exhibit 4.37 of EXFO’s Annual Report on Form 20-F dated November 23, 2006, File No. 000-30895).                           |
| 4.38 | Share Repurchase Program by Way of Normal Course Issuer Bid dated November 6, 2007 (incorporated by reference to EXFO’s report on Form 6-K dated November 6, 2007, file No. 000-30895).                                                                                                                                                                                             |
| 4.39 | Share Purchase Agreement by and Among EXFO Electro-Optical Engineering Inc., Navtel Communications Inc. and Vengrowth Investment Fund, BDC Capital Inc. and others, dated March 26, 2008 (incorporated by reference to Exhibit 4.38 of EXFO’s Annual Report on Form 20-F dated November 26, 2008, File No. 000-30895).                                                              |
| 4.40 | Agreement and Plan of Merger by and among Gexfo Distribution Internationale Inc., EXFO Service Assurance Inc. and Brix Networks, Inc. and Charles River Ventures, LLC dated April 2, 2008 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated May 2, 2008, File No. 000-30895).                                                                           |
| 4.41 | Issuer Tender Offer, Letter of Transmittal and Notice of Guaranteed Delivery dated November 10, 2008 (incorporated by reference as Exhibits (a) (1) (i), (a) (1) (ii) and (a) (1) (iii) to EXFO’s Schedule TO dated November 10, 2008, File No. 000-30895).                                                                                                                         |
| 4.42 | Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 6, 2008 (incorporated by reference to EXFO’s report on Form 6-K dated November 6, 2008, file No. 000-30895).                                                                                                                                                                     |
| 4.43 | Final results of Issuer Bid Tender Offer, dated December 18, 2009 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated December 19, 2008, file No. 000-30895).                                                                                                                                                                                             |
| 4.44 | Share Transfer Agreement by and among GEXFO Distribution Internationale Inc. and AWS Holding AB (PicoSolve AB) and Patent Transfer Agreement by and among EXFO Electro-Optical Engineering Inc. and Starta Eget Boxen 11629 AB dated February 5, 2009 (incorporated by reference to Exhibit 4.44 of EXFO’s Annual Report on Form 20-F dated November 25, 2009, File No. 000-30895). |
| 4.45 | Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 10, 2009 (incorporated by reference to EXFO’s report on Form 6-K dated November 6, 2009, file No. 000-30895).                                                                                                                                                                    |
| 4.46 | Share Purchase Agreement by and among EXFO Finland Oy and NetHawk Oyj’s majority shareholders dated March 12, 2010 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated March 19, 2010, File No. 000-30895).                                                                                                                                         |
| 4.47 | Share Purchase Agreement by and among EXFO Inc. and Photonic Acquisition Inc. dated October 1, 2010 (incorporated by reference to EXFO’s Material Change Report on Form 6-K dated October 8, 2010, File No. 000-30895).                                                                                                                                                             |

----

Table of Contents

| Number | Exhibit |
|--------|---------|

| 4.48 | Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 5, 2010 (incorporated by reference to EXFO’s report on Form 6-K dated November 5, 2010, file No. 000-30895). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.49 | Renewal of EXFO’s Share Repurchase Program by Way of Normal Course Issuer Bid dated November 7, 2011 (incorporated by reference to EXFO’s report on Form 6-K dated November 7, 2011, file No. 000-30895). |
| 8.1  | Subsidiaries of EXFO (list included in Item 4C of this Annual Report).                                                                                                                                                |
| 11.1 | Code of Ethics for our Principal Executive Officer and Senior Financial Officers (incorporated by reference to Exhibit 11.1 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).  |
| 11.2 | Board of Directors Corporate Governance Guidelines (incorporated by reference to Exhibit 11.2 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                                |
| 11.3 | Ethics and Business Conduct Policy (incorporated by reference to Exhibit 11.3 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                                                |
| 11.4 | Statement of Reporting Ethical Violations (Whistle Blower) (incorporated by reference to Exhibit 11.4 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                        |
| 11.5 | Audit Committee Charter.                                                                                                                                                                                              |
| 11.6 | Human Resources Committee Charter (incorporated by reference to Exhibit 11.6 of EXFO’s Annual Report on Form 20-F dated November 24, 2010, File No. 000-30895).                                                 |
| 11.7 | Corporate Governance Practices.                                                                                                                                                                                       |
| 11.8 | Majority Voting Policy.                                                                                                                                                                                               |
| 11.9 | Independent Members Committee Charter.                                                                                                                                                                                |
| 12.1 | Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                               |
| 12.2 | Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                               |
| 13.1 | Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                               |
| 13.2 | Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                               |

----

Table of Contents

----

Table of Contents

| 1.   | I have reviewed this Annual Report on Form 20-F of EXFO Inc. ("EXFO"); |
|----------------|------------------------------------------------------------------------|

| 2.   | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of EXFO as of, and for, the periods presented in this report; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | EXFO's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for EXFO and have: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to EXFO, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Evaluated the effectiveness of EXFO's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Disclosed in this report any change in EXFO's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, EXFO's internal control over financial reporting; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | EXFO's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to EXFO's auditors and the audit committee of EXFO's board of directors: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect EXFO's ability to record, process, summarize and report financial information; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Any fraud, whether or not material, that involves management or other employees who have a significant role in EXFO’s internal control over financial reporting. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 1.   | The Annual Report of Form 20-F for the year ended August 31, 2011 of EXFO fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The information contained in this Annual Report fairly presents, in all material respects, the financial condition and results of operations of EXFO. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 1.   | I have reviewed this Annual Report on Form 20-F of EXFO Inc. ("EXFO"); |
|----------------|------------------------------------------------------------------------|

| 2.   | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of EXFO as of, and for, the periods presented in this report; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | EXFO's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for EXFO and have: |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to EXFO, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c.   | Evaluated the effectiveness of EXFO's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d.   | Disclosed in this report any change in EXFO's internal control over financial reporting that occurred during the period covered by the Annual Report that has materially affected, or is reasonably likely to materially affect, EXFO's internal control over financial reporting; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | EXFO's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to EXFO's auditors and the audit committee of EXFO's board of directors: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a.   | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect EXFO's ability to record, process, summarize and report financial information; and |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b.   | Any fraud, whether or not material, that involves management or other employees who have a significant role in EXFO's internal control over financial reporting. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| 1.   | The Annual Report of Form 20-F for the year ended August 31, 2011 of EXFO fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The information contained in this Annual Report fairly presents, in all material respects, the financial condition and results of operations of EXFO. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|                                                           |   | As at August 31, |    |
|----------------------------------------------------------------|--------|------------------|---------|
|                                                           |   | 2011             |    |   | 2010 |   |
| Assets                                                         |   |             |    |   |   |   |
|                                                           |   |             |    |   |   |   |
| Current assets                                                 |   |             |    |   |   |   |
| Cash                                                           |   | $                | 22,771  |   |   | $ | 21,440 |   |
| Short-term investments (note 7)                                |   |             | 47,091  |   |   |   | 10,379 |   |
| Accounts receivable (note 7)                                   |   |             |    |   |   |   |   |   |
| Trade                                                          |   |             | 45,151  |   |   |   | 50,190 |   |
| Other                                                          |   |             | 6,329   |   |   |   | 5,217 |   |
| Income taxes and tax credits recoverable                       |   |             | 5,414   |   |   |   | 2,604 |   |
| Inventories (note 8)                                           |   |             | 52,754  |   |   |   | 40,328 |   |
| Prepaid expenses                                               |   |             | 3,237   |   |   |   | 2,816 |   |
| Future income taxes (note 19)                                  |   |             | 6,130   |   |   |   | 6,191 |   |
| Current assets held for sale (note 4)                          |   |             | – |   |   |   | 3,991 |   |
|                                                           |   |             |    |   |   |   |   |   |
|                                                           |   |             | 188,877 |   |   |   | 143,156 |   |
|                                                           |   |             |    |   |   |   |   |   |
| Tax credits recoverable                                        |   |             | 36,627  |   |   |   | 29,397 |   |
| Forward exchange contracts (note 7)                            |   |             | 149     |   |   |   | – |   |
| Property, plant and equipment (note 9)                         |   |             | 30,566  |   |   |   | 23,455 |   |
| Intangible assets (note 10)                                    |   |             | 22,901  |   |   |   | 27,947 |   |
| Goodwill (notes 3, 5 and 10)                                   |   |             | 30,942  |   |   |   | 29,355 |   |
| Future income taxes (note 19)                                  |   |             | 11,024  |   |   |   | 12,884 |   |
| Long-term assets held for sale (note 4)                        |   |             | – |   |   |   | 7,308 |   |
|                                                           |   |             |    |   |   |   |   |   |
|                                                           |   | $                | 321,086 |   |   | $ | 273,502 |   |
| Liabilities                                                    |   |             |    |   |   |   |   |   |
|                                                           |   |             |    |   |   |   |   |   |
| Current liabilities                                            |   |             |    |   |   |   |   |   |
| Bank loan                                                      |   | $                | 784     |   |   | $ | – |   |
| Accounts payable and accrued liabilities (note 12)             |   |             | 32,137  |   |   |   | 30,870 |   |
| Income taxes payable                                           |   |             | 876     |   |   |   | 426 |   |
| Current portion of long-term debt (note 13)                    |   |             | 645     |   |   |   | 568 |   |
| Deferred revenue                                               |   |             | 10,590  |   |   |   | 10,354 |   |
| Current liabilities related to assets held for sale (note 4)   |   |             | – |   |   |   | 2,531 |   |
|                                                           |   |             |    |   |   |   |   |   |
|                                                           |   |             | 45,032  |   |   |   | 44,749 |   |
|                                                           |   |             |    |   |   |   |   |   |
| Deferred revenue                                               |   |             | 5,704   |   |   |   | 5,775 |   |
| Long-term debt (note 13)                                       |   |             | 968     |   |   |   | 1,419 |   |
| Other liabilities                                              |   |             | 723     |   |   |   | 603 |   |
| Future income taxes (note 19)                                  |   |             | 4,913   |   |   |   | – |   |
| Long-term liabilities related to assets held for sale (note 4) |   |             | – |   |   |   | 537 |   |
|                                                           |   |             |    |   |   |   |   |   |
|                                                           |   |             | 57,340  |   |   |   | 53,083 |   |
| Commitments (note 14)                                          |   |             |    |   |   |   |   |   |
| Contingency (note 15)                                          |   |             |    |   |   |   |   |   |
|                                                           |   |             |    |   |   |   |   |   |
| Shareholders’ equity                                     |   |             |    |   |   |   |   |   |
| Share capital (note 16)                                        |   |             | 110,341 |   |   |   | 106,126 |   |
| Contributed surplus                                            |   |             | 18,017  |   |   |   | 18,563 |   |
| Retained earnings                                              |   |             | 69,877  |   |   |   | 50,528 |   |
| Accumulated other comprehensive income                         |   |             | 65,511  |   |   |   | 45,202 |   |
|                                                           |   |             |    |   |   |   |   |   |
|                                                           |   |             | 263,746 |   |   |   | 220,419 |   |
|                                                           |   |             |    |   |   |   |   |   |
|                                                           |   | $                | 321,086 |   |   | $ | 273,502 |   |

|  On behalf of the Board  |                            |
|------------------------------------|---------------------------------|
|  /s/ Germain Lamonde          |  /s/ Guy Marier            |
|  GERMAIN LAMONDE              |  GUY MARIER                |
|  Chairman, President and CEO  |  Chairman, Audit Committee |

----

Table of Contents

|                                                                                   |   | Years ended August 31, |    |
|----------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                   |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |
| Sales (note 21)                                                                        |   | $                      | 269,743 |   |   | $ | 202,757 |   |   | $ | 153,082 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cost of sales (1,2) (note 8)                                                           |   |                   | 100,296 |   |   |   | 73,901 |   |   |   | 57,897 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Gross margin                                                                           |   |                   | 169,447 |   |   |   | 128,856 |   |   |   | 95,185 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Selling and administrative (1)                                                         |   |                   | 87,062  |   |   |   | 66,612 |   |   |   | 58,067 |   |
| Net research and development (1) (note 18)                                             |   |                   | 47,927  |   |   |   | 37,847 |   |   |   | 27,213 |   |
| Amortization of property, plant and equipment                                          |   |                   | 6,772   |   |   |   | 5,757 |   |   |   | 4,453 |   |
| Amortization of intangible assets                                                      |   |                   | 9,183   |   |   |   | 7,773 |   |   |   | 5,033 |   |
| Restructuring charges (note 5)                                                         |   |                   | – |   |   |   | – |   |   |   | 963 |   |
| Impairment of goodwill (note 5)                                                        |   |                   | – |   |   |   | – |   |   |   | 21,713 |   |
| Total operating expenses                                                               |   |                   | 150,944 |   |   |   | 117,989 |   |   |   | 117,442 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Earnings (loss) from operations                                                        |   |                   | 18,503  |   |   |   | 10,867 |   |   |   | (22,257 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Interest and other income (expenses)                                                   |   |                   | 511     |   |   |   | (292 | ) |   |   | 592 |   |
| Foreign exchange gain (loss)                                                           |   |                   | (3,808  | ) |   |   | (1,496 | ) |   |   | 1,074 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before income taxes (note 19)                                     |   |                   | 15,206  |   |   |   | 9,079 |   |   |   | (20,591 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Income taxes (note 19)                                                                 |   |                   | 8,783   |   |   |   | 5,529 |   |   |   | 266 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) from continuing operations                                         |   |                   | 6,423   |   |   |   | 3,550 |   |   |   | (20,857 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Net earnings from discontinued operations (note 4)                                     |   |                   | 12,926  |   |   |   | 3,069 |   |   |   | 4,272 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year                                                       |   | $                      | 19,349  |   |   | $ | 6,619 |   |   | $ | (16,585 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Basic net earnings (loss) from continuing operations per share                    |   | $                      | 0.11    |   |   | $ | 0.06 |   |   | $ | (0.34 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Diluted net earnings (loss) from continuing operations per share                  |   | $                      | 0.10    |   |   | $ | 0.06 |   |   | $ | (0.34 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Basic net earnings (loss) per share                                                    |   | $                      | 0.32    |   |   | $ | 0.11 |   |   | $ | (0.27 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Diluted net earnings (loss) per share                                                  |   | $                      | 0.31    |   |   | $ | 0.11 |   |   | $ | (0.27 | ) |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Basic weighted average number of shares outstanding (000’s)                 |   |                   | 60,000  |   |   |   | 59,479 |   |   |   | 61,845 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| Diluted weighted average number of shares outstanding (000’s) (note 20)     |   |                   | 61,488  |   |   |   | 60,616 |   |   |   | 61,845 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| (1)   Stock-based compensation costs included in:                       |   |                   |    |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                          |   | $                      | 224     |   |   | $ | 138 |   |   | $ | 133 |   |
| Selling and administrative                                                             |   | $                      | 1,281   |   |   | $ | 1,042 |   |   | $ | 782 |   |
| Net research and development                                                           |   | $                      | 487     |   |   | $ | 470 |   |   | $ | 383 |   |
| Net earnings from discontinued operations                                              |   | $                      | 264     |   |   | $ | 136 |   |   | $ | 111 |   |
|                                                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |
| (2)   The cost of sales is exclusive of amortization, shown separately. |   |

----

Table of Contents

| Comprehensive income (loss)                                                                      |   |                   |   |
|--------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                             |   |                   |   |
|                                                                                             |   | Years ended August 31, |   |
|                                                                                             |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                                                                                             |   |                   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year                                                                 |   | $                      | 19,349 |   |   | $ | 6,619 |   |   | $ | (16,585 | ) |
| Foreign currency translation adjustment                                                          |   |                   | 19,399 |   |   |   | 3,728 |   |   |   | (10,671 | ) |
| Changes in unrealized losses on short-term investments                                           |   |                   | 2      |   |   |   | – |   |   |   | 22 |   |
| Unrealized gains (losses) on forward exchange contracts                                          |   |                   | 3,413  |   |   |   | 940 |   |   |   | (1,467 | ) |
| Reclassification of realized (gains) losses on forward exchange contracts in net earnings (loss) |   |                   | (2,191 | ) |   |   | (1,022 | ) |   |   | 3,167 |   |
| Future income tax effect of the above items                                                      |   |                   | (314   | ) |   |   | 24 |   |   |   | (528 | ) |
|                                                                                             |   |                   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                                      |   | $                      | 39,658 |   |   | $ | 10,289 |   |   | $ | (26,062 | ) |

| Accumulated other comprehensive income                      |   |                   |    |
|-------------------------------------------------------------|--------|------------------------|---------|
|                                                        |   |                   |    |
|                                                        |   | Years ended August 31, |    |
|                                                        |   | 2011                   |    |   | 2010 |   |
|                                                        |   |                   |    |   |   |   |
| Foreign currency translation adjustment                     |   |                   |    |   |   |   |
| Cumulative effect of prior years                            |   | $                      | 44,186  |   |   | $ | 40,458 |   |
| Current year                                                |   |                   | 19,399  |   |   |   | 3,728 |   |
|                                                        |   |                   |    |   |   |   |   |   |
|                                                        |   |                   | 63,585  |   |   |   | 44,186 |   |
| Unrealized gains on forward exchange contracts              |   |                   |    |   |   |   |   |   |
| Cumulative effect of prior years                            |   |                   | 1,018   |   |   |   | 1,076 |   |
| Current year, net of realized gains and future income taxes |   |                   | 908     |   |   |   | (58 | ) |
|                                                        |   |                   |    |   |   |   |   |   |
|                                                        |   |                   | 1,926   |   |   |   | 1,018 |   |
|                                                        |   |                   |    |   |   |   |   |   |
| Unrealized losses on short-term investments                 |   |                   |    |   |   |   |   |   |
| Cumulative effect of prior years                            |   |                   | (2      | ) |   |   | (2 | ) |
| Current year                                                |   |                   | 2       |   |   |   | – |   |
|                                                        |   |                   |    |   |   |   |   |   |
|                                                        |   |                   | – |   |   |   | (2 | ) |
|                                                        |   |                   |    |   |   |   |   |   |
| Accumulated other comprehensive income                      |   | $                      | 65,511  |   |   | $ | 45,202 |   |

----

Table of Contents

| Retained earnings                 |   |                   |   |   |   |   |   |   |   |
|-----------------------------------|--------|------------------------|--------|--------|--------|--------|--------|--------|--------|
|                              |   |                   |   |   |   |   |   |   |   |
|                              |   | Years ended August 31, |   |
|                              |   | 2011                   |   |   | 2010   |   |   | 2009   |   |
|                              |   |                   |   |   |   |   |   |   |   |
| Balance – Beginning of year |   | $                      | 50,528 |   |   | $      | 43,909 |   |   | $ | 60,494 |   |
|                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Add (deduct)                      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year  |   |                   | 19,349 |   |   |   | 6,619  |   |   |   | (16,585 | ) |
|                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Balance – End of year       |   | $                      | 69,877 |   |   | $      | 50,528 |   |   | $ | 43,909 |   |

| Contributed surplus                                                                                              |   |                   |    |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|--------|--------|--------|
|                                                                                                             |   |                   |    |   |   |   |   |   |   |
|                                                                                                             |   | Years ended August 31, |    |
|                                                                                                             |   | 2011                   |    |   | 2010   |   |   | 2009   |   |
|                                                                                                             |   |                   |    |   |   |   |   |   |   |
| Balance – Beginning of year                                                                                |   | $                      | 18,563  |   |   | $      | 17,758 |   |   | $ | 5,226 |   |
|                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |
| Add (deduct)                                                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Stock-based compensation costs                                                                                   |   |                   | 2,217   |   |   |   | 1,756  |   |   |   | 1,407 |   |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards (note 16) |   |                   | (2,763  | )      |   |   | (954   | )      |   |   | (540 | ) |
| Discount on redemption of share capital (note 16)                                                                |   |                   | – |   |   |   | 3      |   |   |   | 11,665 |   |
|                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |
| Balance – End of year                                                                                      |   | $                      | 18,017  |   |   | $      | 18,563 |   |   | $ | 17,758 |   |

----

Table of Contents

|                                                                |   | Years ended August 31, |     |
|---------------------------------------------------------------------|--------|------------------------|----------|
|                                                                |   | 2011                   |     |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities                                |   |                   |     |   |   |   |   |   |   |
| Net earnings (loss) for the year                                    |   | $                      | 19,349   |   |   | $ | 6,619 |   |   | $ | (16,585 | ) |
| Add (deduct) items not affecting cash                               |   |                   |     |   |   |   |   |   |   |   |   |   |
| Change in discount on short-term investments                        |   |                   | (42      | ) |   |   | 19 |   |   |   | 597 |   |
| Stock-based compensation costs                                      |   |                   | 2,256    |   |   |   | 1,786 |   |   |   | 1,409 |   |
| Amortization                                                        |   |                   | 15,973   |   |   |   | 13,729 |   |   |   | 9,674 |   |
| Deferred revenue                                                    |   |                   | (1,262   | ) |   |   | 3,672 |   |   |   | 1,706 |   |
| Gain on disposal of discontinued operations (note 4)                |   |                   | (13,212  | ) |   |   | – |   |   |   | – |   |
| (Gain) loss on disposal of capital assets                           |   |                   | (568     | ) |   |   | – |   |   |   | 237 |   |
| Impairment of goodwill (note 5)                                     |   |                   | –  |   |   |   | – |   |   |   | 21,713 |   |
| Future income taxes                                                 |   |                   | 7,032    |   |   |   | 5,787 |   |   |   | (300 | ) |
| Change in unrealized foreign exchange gain/loss                     |   |                   | 2,130    |   |   |   | 471 |   |   |   | (1,955 | ) |
|                                                                |   |                   | 31,656   |   |   |   | 32,083 |   |   |   | 16,496 |   |
| Change in non-cash operating items                                  |   |                   |     |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                 |   |                   | 10,066   |   |   |   | (22,522 | ) |   |   | 9,654 |   |
| Income taxes and tax credits                                        |   |                   | (6,714   | ) |   |   | (4,073 | ) |   |   | (3,391 | ) |
| Inventories                                                         |   |                   | (8,751   | ) |   |   | (9,302 | ) |   |   | 2,624 |   |
| Prepaid expenses                                                    |   |                   | (232     | ) |   |   | 105 |   |   |   | (350 | ) |
| Accounts payable and accrued liabilities                            |   |                   | (2,775   | ) |   |   | 5,168 |   |   |   | (2,409 | ) |
| Other liabilities                                                   |   |                   | 60       |   |   |   | 308 |   |   |   | – |   |
|                                                                |   |                   | 23,310   |   |   |   | 1,767 |   |   |   | 22,624 |   |
| Cash flows from investing activities                                |   |                   |     |   |   |   |   |   |   |   |   |   |
| Additions to short-term investments                                 |   |                   | (516,674 | ) |   |   | (233,388 | ) |   |   | (438,460 | ) |
| Proceeds from disposal and maturity of short-term investments       |   |                   | 481,945  |   |   |   | 285,805 |   |   |   | 456,612 |   |
| Additions to capital assets                                         |   |                   | (12,164  | ) |   |   | (8,966 | ) |   |   | (6,945 | ) |
| Proceeds from disposal of capital assets                            |   |                   | 568      |   |   |   | – |   |   |   | – |   |
| Net proceeds from disposal of discontinued operations (note 4) |   |                   | 22,063   |   |   |   | – |   |   |   | – |   |
| Business combinations, net of cash acquired (note 3)                |   |                   | (1,049   | ) |   |   | (33,042 | ) |   |   | (2,414 | ) |
|                                                                |   |                   | (25,311  | ) |   |   | 10,409 |   |   |   | 8,793 |   |
| Cash flows from financing activities                                |   |                   |     |   |   |   |   |   |   |   |   |   |
| Bank loan                                                           |   |                   | 772      |   |   |   | – |   |   |   | – |   |
| Repayment of long-term debt                                         |   |                   | (619     | ) |   |   | (274 | ) |   |   | – |   |
| Redemption of share capital                                         |   |                   | –  |   |   |   | (14 | ) |   |   | (26,871 | ) |
| Exercise of stock options                                           |   |                   | 1,452    |   |   |   | 343 |   |   |   | 56 |   |
|                                                                |   |                   | 1,605    |   |   |   | 55 |   |   |   | (26,815 | ) |
|                                                                |   |                   |     |   |   |   |   |   |   |   |   |   |
| Effect of foreign exchange rate changes on cash                     |   |                   | 1,058    |   |   |   | (733 | ) |   |   | 95 |   |
|                                                                |   |                   |     |   |   |   |   |   |   |   |   |   |
| Change in cash                                                      |   |                   | 662      |   |   |   | 11,498 |   |   |   | 4,697 |   |
| Cash – Beginning of year                                      |   |                   | 22,109   |   |   |   | 10,611 |   |   |   | 5,914 |   |
| Cash – End of year                                            |   | $                      | 22,771   |   |   | $ | 22,109 |   |   | $ | 10,611 |   |
|                                                                |   |                   |     |   |   |   |   |   |   |   |   |   |
| Supplementary information                                           |   |                   |     |   |   |   |   |   |   |   |   |   |
| Interest paid                                                       |   | $                      | 159      |   |   | $ | 34 |   |   | $ | 23 |   |
| Income taxes paid                                                   |   | $                      | 1,878    |   |   | $ | 796 |   |   | $ | 86 |   |
|                                                                |   |                   |     |   |   |   |   |   |   |   |   |   |
| Cash related to:                                                    |   |                   |     |   |   |   |   |   |   |   |   |   |
| Continuing operations                                               |   | $                      | 22,771   |   |   | $ | 21,440 |   |   | $ | 9,777 |   |
| Discontinued operations (note 4)                                    |   |                   | –  |   |   |   | 669 |   |   |   | 834 |   |
|                                                                |   | $                      | 22,771   |   |   | $ | 22,109 |   |   | $ | 10,611 |   |

----

Table of Contents

|  1 |  Nature of Activities |
|---------|----------------------------|

|  2 |  Summary of Significant Accounting Policies |
|---------|--------------------------------------------------|

----

Table of Contents

|                   |   | Term                                               |
|------------------------|--------|----------------------------------------------------|
| Land improvements      |   | 5 years                                            |
| Buildings              |   | 20 and 25 years                                    |
| Equipment              |   | 2 to 10 years                                 |
| Leasehold improvements |   | The lesser of useful life and remaining lease term |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|  3 |  Business Combination |
|---------|----------------------------|

----

Table of Contents

| Assets acquired, net of cash acquired    |   |   |   |
|------------------------------------------|--------|--------|--------|
| Accounts receivable                      |   | $      | 7,710  |   |
| Inventories                              |   |   | 2,315  |   |
| Other current assets                     |   |   | 797    |   |
| Property, plant and equipment            |   |   | 2,994  |   |
| Core technology                          |   |   | 8,638  |   |
| Customer relationships                   |   |   | 7,180  |   |
| Other intangible assets                  |   |   | 2,033  |   |
| Current liabilities assumed              |   |   |   |   |
| Accounts payable and accrued liabilities |   |   | (5,710 | ) |
| Deferred revenue                         |   |   | (1,615 | ) |
| Long-term debt                           |   |   | (2,464 | ) |
| Net identifiable assets acquired         |   |   | 21,878 |   |
| Goodwill                                 |   |   | 12,560 |   |
| Purchase price, net of cash acquired     |   | $      | 34,438 |   |

|  4 |  Discontinued Operations |
|---------|-------------------------------|

|                                                           |   | Years ended August 31, |   |
|----------------------------------------------------------------|--------|------------------------|--------|
|                                                           |   |                   |   |   |   |   |   |   |   |
|                                                           |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                                                           |   | (30 days)              |   |   |   |   |   |   |   |
| Sales                                                          |   | $                      | 1,991  |   |   | $ | 25,359 |   |   | $ | 19,796 |   |
| Gross margin                                                   |   | $                      | 989    |   |   | $ | 13,563 |   |   | $ | 10,801 |   |
| Earnings (loss) from operations                                |   | $                      | (6     | ) |   | $ | 4,281 |   |   | $ | 4,179 |   |
| Gain from disposal of discontinued operations                  |   | $                      | 13,212 |   |   | $ | – |   |   | $ | – |   |
| Net earnings from discontinued operations                      |   | $                      | 12,926 |   |   | $ | 3,069 |   |   | $ | 4,272 |   |
| Basic net earnings from discontinued operations per share |   | $                      | 0.22   |   |   | $ | 0.05 |   |   | $ | 0.07 |   |
| Diluted net earnings from discontinued operations per share    |   | $                      | 0.21   |   |   | $ | 0.05 |   |   | $ | 0.07 |   |

----

Table of Contents

| Assets                                                |   |   |   |
|-------------------------------------------------------|--------|--------|--------|
|                                                  |   |   |   |
| Current assets                                        |   |   |   |
| Cash                                                  |   | $      | 669    |   |
| Accounts receivable                                   |   |   | 84     |   |
| Income taxes and tax credits recoverable              |   |   | 188    |   |
| Inventories                                           |   |   | 2,670  |   |
| Prepaid expenses                                      |   |   | 158    |   |
| Future income taxes                                   |   |   | 222    |   |
|                                                  |   |   |   |   |
| Current assets held for sale                          |   |   | 3,991  |   |
|                                                  |   |   |   |   |
| Tax credits recoverable                               |   |   | 2,142  |   |
| Property, plant and equipment                         |   |   | 349    |   |
| Intangible assets                                     |   |   | 48     |   |
| Goodwill                                              |   |   | 4,769  |   |
|                                                  |   |   |   |   |
| Long-term assets held for sale                        |   |   | 7,308  |   |
|                                                  |   |   |   |   |
|                                                  |   | $      | 11,299 |   |
| Liabilities                                           |   |   |   |   |
|                                                  |   |   |   |   |
| Current liabilities related to assets held for sale   |   | $      | 2,531  |   |
|                                                  |   |   |   |   |
| Long-term liabilities related to assets held for sale |   |   | 537    |   |
|                                                  |   |   |   |   |
|                                                  |   | $      | 3,068  |   |

|  5 |  Special Charges |
|---------|-----------------------|

----

Table of Contents

|               |   | Balance as atAugust 31, 2009 |   |   | Additions |   |    | Payments |   |   | Balance as atAugust 31, 2010 |   |
|--------------------|--------|----------------------------------------|--------|--------|-----------|--------|---------|----------|--------|--------|----------------------------------------|--------|
| Fiscal 2009 plan   |   |                                   |   |   |      |   |    |     |   |   |                                   |   |
| Severance expenses |   | $                                      | 24     |   |      | $      | − |     |   | $      | (24                                    | )      |   | $ | − |   |

|                |   | Balance as atAugust 31, 2008 |    |   | Additions |   |    | Payments |   |   | Balance as atAugust 31, 2009 |   |
|---------------------|--------|----------------------------------------|---------|--------|-----------|--------|---------|----------|--------|--------|----------------------------------------|--------|
| Fiscal 2009 plan    |   |                                   |    |   |      |   |    |     |   |   |                                   |   |
| Severance expenses  |   | $                                      | − |   |      | $      | 963     |     |   | $      | (939                                   | )      |   | $ | 24 |   |
|                |   |                                   |    |   |      |   |    |     |   |   |                                   |   |   |   |   |   |
| Fiscal 2008 plan    |   |                                   |    |   |      |   |    |     |   |   |                                   |   |   |   |   |   |
| Severance expenses  |   |                                   | 292     |   |      |   | − |     |   |   | (292                                   | )      |   |   | − |   |
|                |   |                                   |    |   |      |   |    |     |   |   |                                   |   |   |   |   |   |
| Total for all plans |   | $                                      | 292     |   |      | $      | 963     |     |   | $      | (1,231                                 | )      |   | $ | 24 |   |

|  6 |  Capital Disclosures |
|---------|---------------------------|

| ·   | To maintain a flexible capital structure that optimizes the cost of capital at acceptable risk; |
|--------------------|-------------------------------------------------------------------------------------------------|

| ·   | To sustain future development of the company, including research and development activities, market development, and potential acquisitions of complementary businesses or products; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | To provide the company’s shareholders with an appropriate return on their investment. |
|--------------------|---------------------------------------------------------------------------------------------|

|  7 |  Financial Instruments |
|---------|-----------------------------|

----

Table of Contents

| Cash                       | Held for trading      |
|----------------------------|-----------------------|
| Short-term investments     | Available for sale    |
| Accounts receivable        | Loans and receivables |
| Forward exchange contracts | Cash flow hedge       |

| Bank loan                                | Other financial liabilities |
|------------------------------------------|-----------------------------|
| Accounts payable and accrued liabilities | Other financial liabilities |
| Long-term debt                           | Other financial liabilities |
| Other liabilities                        | Other financial liabilities |
| Forward exchange contracts               | Cash flow hedge             |

|   |  Expiry dates                  |   | Contractualamounts |   |   | Weighted average contractualforward rates |   |
|--------|-------------------------------------|--------|--------------------|--------|--------|-----------------------------------------------------|--------|
|   |                                |   |               |   |
|   |  September 2011 to August 2012 |   | $                  | 27,500 |   |                                                |   | 1.0555 |   |
|   |  September 2012 to July 2013   |   |               | 11,400 |   |                                                |   | 1.0063 |   |
|   |  Total                         |   | $                  | 38,900 |   |                                                |   | 1.0411 |   |

----

Table of Contents

|                                       |   | As at August 31,                                  |   |
|--------------------------------------------|--------|---------------------------------------------------|--------|
|                                       |   |                                              |   |   |   |   |   |   |   |   |   |   |
|                                       |   | 2011                                              |   |   | 2010 |   |
|                                       |   |                                              |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Carrying/nominalamount(in thousandsof US dollars) |   |   | Carrying/nominalamount(in thousandsof euros) |   |   | Carrying/nominalamount(in thousandsof US dollars) |   |   | Carrying/nominalamount(in thousandsof euros) |   |
|                                       |   |                                              |   |   |   |   |   |   |   |   |   |   |
| Financial assets                           |   |                                              |   |   |   |   |   |   |   |   |   |   |
| Cash                                       |   | $                                                 | 10,553 |   |   | € | 1,502 |   |   | $ | 6,947 |   |   | € | 1,287 |   |
| Accounts receivable                        |   |                                              | 25,040 |   |   |   | 4,332 |   |   |   | 30,218 |   |   |   | 3,860 |   |
|                                       |   |                                              | 35,593 |   |   |   | 5,834 |   |   |   | 37,165 |   |   |   | 5,147 |   |
| Financial liabilities                      |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities   |   |                                              | 8,706  |   |   |   | 37 |   |   |   | 8,932 |   |   |   | 438 |   |
| Forward exchange contracts (nominal value) |   |                                              | 5,400  |   |   |   | – |   |   |   | 5,900 |   |   |   | – |   |
|                                       |   |                                              | 14,106 |   |   |   | 37 |   |   |   | 14,832 |   |   |   | 438 |   |
| Net exposure                               |   | $                                                 | 21,487 |   |   | € | 5,797 |   |   | $ | 22,333 |   |   | € | 4,709 |   |

| ·   | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would decrease (increase) net earnings by $2,101,000, or $0.03 per diluted share, and $1,943,000, or $0.03 per diluted share, as at August 31, 2010 and 2011, respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the euro would decrease (increase) net earnings by $621,000, or $0.01 per diluted share, and $831,000, or $0.01 per diluted share, as at August 31, 2010 and 2011, respectively. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase (decrease) of 10% in the period-end value of the Canadian dollar compared to the US dollar would increase (decrease) comprehensive income by $3,238,000 and $2,404,000 as at August 31, 2010 and 2011, respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                       |   | As at August 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                       |   |             |   |   |   |   |
|                                                                                                                                                                                                                                                                       |   | 2011             |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                       |   |             |   |   |   |   |
| Commercial paper denominated in Canadian dollars, bearing interest at annual rates of 1.0% to 1.3% in fiscal 2011 and 0.6% to 0.9% in fiscal 2010, maturing between September and November 2011 in fiscal 2011, and in September and October 2010 in fiscal 2010 |   | $                | 31,765 |   |   | $ | 6,383 |   |
| Bankers acceptance denominated in Canadian dollars, bearing interest at annual rates of 1.0% to 1.2% in fiscal 2011 and 0.8% in fiscal 2010, maturing in September and November 2011 in fiscal 2011 and in September 2010 in fiscal 2010                              |   |             | 15,326 |   |   |   | 3,996 |   |
|                                                                                                                                                                                                                                                                       |   | $                | 47,091 |   |   | $ | 10,379 |   |

----

Table of Contents

|                                                                                                                                     |   | As at August 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
|                                                                                                                                     |   |             |   |   |   |   |
|                                                                                                                                     |   | 2011             |   |   | 2010 |   |
|                                                                                                                                     |   |             |   |   |   |   |
| Current                                                                                                                                  |   | $                | 33,149 |   |   | $ | 38,663 |   |
| Past due, 0 to 30 days                                                                                                                   |   |             | 7,299  |   |   |   | 6,787 |   |
| Past due, 31 to 60 days                                                                                                                  |   |             | 2,590  |   |   |   | 1,991 |   |
| Past due, more than 60 days, less allowance for doubtful accounts of $1,243 and $1,245 as at August 31, 2010 and 2011, respectively |   |             | 2,113  |   |   |   | 2,749 |   |
| Total accounts receivable                                                                                                                |   | $                | 45,151 |   |   | $ | 50,190 |   |

----

Table of Contents

|                                |   | Years ended August 31, |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   |                   |   |   |   |   |
|                                |   | 2011                   |   |   | 2010 |   |
|                                |   |                   |   |   |   |   |
| Balance – Beginning of year   |   | $                      | 1,243  |   |   | $ | 1,220 |   |
| Addition charged to earnings        |   |                   | 148    |   |   |   | 150 |   |
| Write-off of uncollectible accounts |   |                   | (111   | ) |   |   | – |   |
| Recovery of uncollectible accounts  |   |                   | (35    | ) |   |   | (127 | ) |
|                                |   |                   |   |   |   |   |   |   |
| Balance – End of year         |   | $                      | 1,245  |   |   | $ | 1,243 |   |

|                                     |   | As at August 31, 2011 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   |                  |    |   |   |   |   |   |   |
|                                     |   | 0-12months            |    |   | 13-24months |   |   | 25-36months |   |
|                                     |   |                  |    |   |   |   |   |   |   |
| Bank loan                                |   | $                     | 784     |   |   | $ | – |   |   | $ | – |   |
| Accounts payable and accrued liabilities |   |                  | 30,319  |   |   |   | – |   |   |   | – |   |
| Long-term debt                           |   |                  | 645     |   |   |   | 645 |   |   |   | 323 |   |
| Other liabilities                        |   |                  | – |   |   |   | 201 |   |   |   | – |   |
| Forward exchange contracts               |   |                  |    |   |   |   |   |   |   |   |   |   |
| Outflow                                  |   |                  | 27,500  |   |   |   | 11,400 |   |   |   | – |   |
| Inflow                                   |   |                  | (29,668 | ) |   |   | (11,725 | ) |   |   | – |   |
| Total                                    |   | $                     | 29,580  |   |   | $ | 521 |   |   | $ | 323 |   |

|                                     |   | As at August 31, 2010 |    |
|------------------------------------------|--------|-----------------------|---------|
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |
|                                     |   | 0-12months            |    |   | 13-24months |   |   | 25-36months |   |   | Over 36months |   |
|                                     |   |                  |    |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | 29,711  |   |   | $ | – |   |   | $ | – |   |   | $ | – |   |
| Long-term debt                           |   |                  | 568     |   |   |   | 568 |   |   |   | 568 |   |   |   | 283 |   |
| Other liabilities                        |   |                  | – |   |   |   | 295 |   |   |   | – |   |   |   | – |   |
| Forward exchange contracts               |   |                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outflow                                  |   |                  | 29,500  |   |   |   | 20,400 |   |   |   | 1,500 |   |   |   | – |   |
| Inflow                                   |   |                  | (30,141 | ) |   |   | (20,662 | ) |   |   | (1,508 | ) |   |   | – |   |
| Total                                    |   | $                     | 29,638  |   |   | $ | 601 |   |   | $ | 560 |   |   | $ | 283 |   |

----

Table of Contents

|  8 |  Inventories |
|---------|-------------------|

|             |   | As at August 31, |   |
|------------------|--------|------------------|--------|
|             |   |             |   |   |   |   |
|             |   | 2011             |   |   | 2010 |   |
|             |   |             |   |   |   |   |
| Raw materials    |   | $                | 30,280 |   |   | $ | 21,505 |   |
| Work in progress |   |             | 2,206  |   |   |   | 1,975 |   |
| Finished goods   |   |             | 20,268 |   |   |   | 16,848 |   |
|             |   |             |   |   |   |   |   |   |
|             |   | $                | 52,754 |   |   | $ | 40,328 |   |

|  9 |  Property, Plant and Equipment |
|---------|-------------------------------------|

|                               |   | As at August 31, |   |
|------------------------------------|--------|------------------|--------|
|                               |   |             |   |   |   |   |   |   |   |   |   |   |
|                               |   | 2011             |   |   | 2010 |   |
|                               |   |             |   |   |   |   |   |   |   |   |   |   |
|                               |   | Cost             |   |   | Accumulatedamortization |   |   | Cost |   |   | Accumulatedamortization |   |
|                               |   |             |   |   |   |   |   |   |   |   |   |   |
| Land and land improvements         |   | $                | 4,705  |   |   | $ | 1,317 |   |   | $ | 2,287 |   |   | $ | 1,200 |   |
| Buildings                          |   |             | 17,346 |   |   |   | 5,868 |   |   |   | 14,395 |   |   |   | 4,987 |   |
| Equipment                          |   |             | 44,034 |   |   |   | 32,470 |   |   |   | 39,734 |   |   |   | 28,282 |   |
| Leasehold improvements             |   |             | 3,255  |   |   |   | 2,061 |   |   |   | 2,976 |   |   |   | 1,468 |   |
| Asset under construction (note 14) |   |             | 2,942  |   |   |   | – |   |   |   | – |   |   |   | – |   |
|                               |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |             | 72,282 |   |   | $ | 41,716 |   |   |   | 59,392 |   |   | $ | 35,937 |   |
| Less:                              |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated amortization           |   |             | 41,716 |   |   |   |   |   |   |   | 35,937 |   |   |   |   |   |
|                               |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |   | $                | 30,566 |   |   |   |   |   |   | $ | 23,455 |   |   |   |   |   |

----

Table of Contents

|  10 |  Intangible Assets and Goodwill |
|----------|--------------------------------------|

|                     |   | As at August 31, |   |
|--------------------------|--------|------------------|--------|
|                     |   |             |   |   |   |   |   |   |   |   |   |   |
|                     |   | 2011             |   |   | 2010 |   |
|                     |   |             |   |   |   |   |   |   |   |   |   |   |
|                     |   | Cost             |   |   | Accumulatedamortization |   |   | Cost |   |   | Accumulatedamortization |   |
|                     |   |             |   |   |   |   |   |   |   |   |   |   |
| Core technology          |   | $                | 27,215 |   |   | $ | 14,455 |   |   | $ | 34,858 |   |   | $ | 17,496 |   |
| Customer relationships   |   |             | 7,519  |   |   |   | 2,211 |   |   |   | 6,615 |   |   |   | 622 |   |
| Brand name               |   |             | 749    |   |   |   | 220 |   |   |   | 659 |   |   |   | 62 |   |
| Software                 |   |             | 13,722 |   |   |   | 9,418 |   |   |   | 11,557 |   |   |   | 7,562 |   |
|                     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |             | 49,205 |   |   | $ | 26,304 |   |   |   | 53,689 |   |   | $ | 25,742 |   |
| Less:                    |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated amortization |   |             | 26,304 |   |   |   |   |   |   |   | 25,742 |   |   |   |   |   |
|                     |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | $                | 22,901 |   |   |   |   |   |   | $ | 27,947 |   |   |   |   |   |

|                                        |   | Years ended August 31, |    |
|---------------------------------------------|--------|------------------------|---------|
|                                        |   |                   |    |   |   |   |
|                                        |   | 2011                   |    |   | 2010 |   |
|                                        |   |                   |    |   |   |   |
| Balance – Beginning of year           |   | $                      | 29,355  |   |   | $ | 17,840 |   |
| Addition from business combination (note 3) |   |                   | – |   |   |   | 12,560 |   |
| Foreign currency translation adjustment     |   |                   | 1,587   |   |   |   | (1,045 | ) |
|                                        |   |                   |    |   |   |   |   |   |
| Balance – End of year                 |   | $                      | 30,942  |   |   | $ | 29,355 |   |

|  11 |  Credit Facilities |
|----------|-------------------------|

----

Table of Contents

|  12 |  Accounts Payable and Accrued Liabilities |
|----------|------------------------------------------------|

|                                |   | As at August 31, |    |
|-------------------------------------|--------|------------------|---------|
|                                |   |             |    |   |   |   |
|                                |   | 2011             |    |   | 2010 |   |
|                                |   |             |    |   |   |   |
| Trade                               |   | $                | 15,717  |   |   | $ | 14,244 |   |
| Salaries and social benefits        |   |             | 12,649  |   |   |   | 12,400 |   |
| Warranty                            |   |             | 1,402   |   |   |   | 579 |   |
| Forward exchange contracts (note 7) |   |             | – |   |   |   | 232 |   |
| Other                               |   |             | 2,369   |   |   |   | 3,415 |   |
|                                |   |             |    |   |   |   |   |   |
|                                |   | $                | 32,137  |   |   | $ | 30,870 |   |

|                              |   | Years ended August 31, |   |
|-----------------------------------|--------|------------------------|--------|
|                              |   |                   |   |   |   |   |
|                              |   | 2011                   |   |   | 2010 |   |
|                              |   |                   |   |   |   |   |
| Balance – Beginning of year |   | $                      | 579    |   |   | $ | 647 |   |
| Provision                         |   |                   | 1,608  |   |   |   | 810 |   |
| Settlements                       |   |                   | (785   | ) |   |   | (878 | ) |
|                              |   |                   |   |   |   |   |   |   |
| Balance – End of year       |   | $                      | 1,402  |   |   | $ | 579 |   |

|  13 |  Long-Term Debt |
|----------|----------------------|

|                                                                                                                                                                                                             |   | Years ended August 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                             |   |                   |   |   |   |   |
|                                                                                                                                                                                                             |   | 2011                   |   |   | 2010 |   |
|                                                                                                                                                                                                             |   |                   |   |   |   |   |
| Loan collateralized by assets of NetHawk Oyj denominated in euros (€1,120), bearing interest at 2.95%, repayable in semi-annual installments of $323 (€224), maturing in December 2013 (note 3) |   | $                      | 1,613  |   |   | $ | 1,987 |   |
| Less: current portion                                                                                                                                                                                            |   |                   | 645    |   |   |   | 568 |   |
|                                                                                                                                                                                                             |   |                   |   |   |   |   |   |   |
|                                                                                                                                                                                                             |   | $                      | 968    |   |   | $ | 1,419 |   |

----

Table of Contents

|  14 |  Commitments |
|----------|-------------------|

|  15 |  Contingency |
|----------|-------------------|

----

Table of Contents

|  16 |  Share Capital |
|----------|---------------------|

| Authorized – unlimited as to number, without par value |
|-------------------------------------------------------------------|
|                                                              | Subordinate voting and participating, bearing a non-cumulative dividend to be determined by the Board of Directors, ranking pari passu with multiple voting shares |
|                                                              | Multiple voting and participating, entitling to 10 votes each, bearing a non-cumulative dividend to be determined by the Board of Directors, convertible at the holder’s option into subordinate voting shares on a one-for-one basis, ranking pari passu with subordinate voting shares |

----

Table of Contents

|                                                                                              |   | Multiple voting shares |       |   | Subordinate voting shares |   |    |   |   |
|---------------------------------------------------------------------------------------------------|--------|------------------------|------------|--------|---------------------------|--------|---------|--------|--------|
|                                                                                              |   | Number                 |       |   | Amount                    |   |    | Number |   |   | Amount |   |   | Totalamount |   |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2008                                                                     |   |                   | 36,643,000 |   |                      | $      | 1       |   |   |   | 30,783,705 |   |   | $ | 142,785 |   |   | $ | 142,786 |   |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of stock options (note 17)                                                               |   |                   | –    |   |                      |   | – |   |   |   | 27,500 |   |   |   | 56 |   |   |   | 56 |   |
| Redemption of restricted share units (note 17)                                          |   |                   | –    |   |                      |   | – |   |   |   | 106,190 |   |   |   | – |   |   |   | – |   |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards |   |                   | –    |   |                      |   | – |   |   |   | – |   |   |   | 540 |   |   |   | 540 |   |
| Redemption of share capital                                                                       |   |                   | –    |   |                      |   | – |   |   |   | (8,181,093 | ) |   |   | (38,536 | ) |   |   | (38,536 | ) |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2009                                                                     |   |                   | 36,643,000 |   |                      |   | 1       |   |   |   | 22,736,302 |   |   |   | 104,845 |   |   |   | 104,846 |   |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercise of stock options (note 17)                                                               |   |                   | –    |   |                      |   | – |   |   |   | 83,700 |   |   |   | 343 |   |   |   | 343 |   |
| Redemption of restricted share units (note 17)                                          |   |                   | –    |   |                      |   | – |   |   |   | 120,307 |   |   |   | – |   |   |   | – |   |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards |   |                   | –    |   |                      |   | – |   |   |   | – |   |   |   | 954 |   |   |   | 954 |   |
| Redemption of share capital                                                                       |   |                   | –    |   |                      |   | – |   |   |   | (3,600 | ) |   |   | (17 | ) |   |   | (17 | ) |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2010                                                                     |   |                   | 36,643,000 |   |                      |   | 1       |   |   |   | 22,936,709 |   |   |   | 106,125 |   |   |   | 106,126 |   |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of multiple voting shares into subordinate voting shares                               |   |                   | (5,000,000 | )      |                      |   | – |   |   |   | 5,000,000 |   |   |   | – |   |   |   | – |   |
| Exercise of stock options (note 17)                                                               |   |                   | –    |   |                      |   | – |   |   |   | 306,825 |   |   |   | 1,452 |   |   |   | 1,452 |   |
| Redemption of restricted share units (note 17)                                          |   |                   | –    |   |                      |   | – |   |   |   | 340,974 |   |   |   | – |   |   |   | – |   |
| Redemption of deferred shares units (note 17)                                                |   |                   | –    |   |                      |   | – |   |   |   | 37,491 |   |   |   | – |   |   |   | – |   |
| Reclassification of stock-based compensation costs to share capital upon exercise of stock awards |   |                   | –    |   |                      |   | – |   |   |   | – |   |   |   | 2,763 |   |   |   | 2,763 |   |
|                                                                                              |   |                   |       |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as at August 31, 2011                                                                     |   |                   | 31,643,000 |   |                      | $      | 1       |   |   |   | 28,621,999 |   |   | $ | 110,340 |   |   | $ | 110,341 |   |

|   | a) | On November 6, 2008, the company announced that its Board of Directors had authorized a renewal of its share repurchase program, by way of a normal course issuer bid on the open market, of up to 10% of its public float (as defined by the Toronto Stock Exchange), or 2,738,518 subordinate voting shares, at the prevailing market price. The period of the normal course issuer bid commenced on November 10, 2008, and ended on November 9, 2009. The company redeemed for cancellation 488,786 subordinate voting shares for an aggregate net purchase price of $1,416,000 under that program. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | On November 10, 2008, the company announced that its Board of Directors had authorized a substantial issuer bid (the “Offer”) to purchase for cancellation subordinate voting shares for an aggregate purchase price not to exceed CA$30,000,000. On December 18, 2008, pursuant to the Offer, the company purchased for cancellation 7,692,307 subordinate voting shares for the aggregate purchase price of CA$30,000,000 (US$24,879,000), plus related fees of $576,000. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|   | c) | On November 6, 2009, the company announced that its Board of Directors had authorized the second renewal of its share repurchase program, by way of a normal course issuer bid on the open market, of up to 10% of its public float (as defined by the Toronto Stock Exchange), or 2,256,431 subordinate voting shares, at the prevailing market price. The period of the normal course issuer bid started on November 10, 2009, and ended on November 9, 2010. The company redeemed for cancellation 3,600 shares under that program for an aggregate net purchase price of $14,000. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | On November 5, 2010, the company announced that its Board of Directors had authorized the third renewal of its share repurchase program, by way of a normal course issuer bid on the open market, of up to 10% of its public float (as defined by the Toronto Stock Exchange), or 2,012,562 subordinate voting shares, at the prevailing market price. The period of the normal course issuer bid started on November 10, 2010, and will end on November 9, 2011. As at November 7, 2011, the company had redeemed for cancellation 25,055 shares under that program for an aggregate net purchase price of $144,197. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | On November 7, 2011 the company announced that its Board of Directors approved the fourth renewal of its share repurchase program, by way of a normal course issuer bid on the open market of up to 2% of issued and outstanding subordinate voting share, representing 575,690 subordinate voting shares at the prevailing market price. The company expects to use cash, short-term investments or future cash flow from operations to fund the repurchase of shares. The normal course issuer bid will start on November 10, 2011, and will end on November 9, 2012, or on an earlier date if the company repurchases the maximum number of shares permitted under the bid. The program does not require that the company repurchases any specific number of shares, and it may be modified, suspended or terminated at any time and without prior notice. All shares repurchased under the bid will be cancelled. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  17 |  Stock-Based Compensation Plans |
|----------|--------------------------------------|

----

Table of Contents

|                                  |   | Years ended August 31, |      |
|---------------------------------------|--------|------------------------|-----------|
|                                  |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | 2011                   |      |   | 2010 |   |   | 2009 |   |
|                                  |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | Number                 |      |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |
|                                  |   |                   |      |   | (CA$) |   |   |   |   |   | (CA$) |   |   |   |   |   | (CA$) |   |
| Outstanding – Beginning of year |   |                   | 1,348,787 |   |   | $ | 19 |   |   |   | 1,666,589 |   |   | $ | 21 |   |   |   | 1,821,481 |   |   | $ | 21 |   |
| Exercised                             |   |                   | (306,825  | ) |   |   | 5 |   |   |   | (83,700 | ) |   |   | 4 |   |   |   | (27,500 | ) |   |   | 3 |   |
| Forfeited                             |   |                   | (43,541   | ) |   |   | 14 |   |   |   | − |   |   |   | − |   |   |   | (1,000 | ) |   |   | 6 |   |
| Expired                               |   |                   | (357,064  | ) |   |   | 48 |   |   |   | (234,102 | ) |   |   | 36 |   |   |   | (126,392 | ) |   |   | 26 |   |
|                                  |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding – End of year       |   |                   | 641,357   |   |   | $ | 9 |   |   |   | 1,348,787 |   |   | $ | 19 |   |   |   | 1,666,589 |   |   | $ | 21 |   |
|                                  |   |                   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable – End of year       |   |                   | 641,357   |   |   | $ | 9 |   |   |   | 1,348,787 |   |   | $ | 19 |   |   |   | 1,660,090 |   |   | $ | 21 |   |

|           |            |   | Stock options outstanding and exercisable |   |
|----------------|-----------------|--------|-------------------------------------------|--------|
|           |            |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Exercise price |            |   | Number                                    |   |   | Weightedaverageexercise price |   |   | Intrinsic value |   |   | Weightedaverageremainingcontractual life |   |
| (CA$)          |            |   |                                      |   |   | (CA$) |   |   | (CA$) |   |   |   |   |
| $              | 2.50            |   |                                      |   | 112,025 |   |   | $ | 2.50 |   |   | $ | 453 |   |   | 1 year |   |
| $              | 4.64 to $6.28   |   |                                      |   | 243,529 |   |   |   | 5.48 |   |   |   | 261 |   |   | 3 years |   |
| $              | 9.02            |   |                                      |   | 10,000 |   |   |   | 9.02 |   |   |   | – |   |   | 1 year |   |
| $              | 14.27 to $20.00 |   |                                      |   | 275,803 |   |   |   | 15.73 |   |   |   | – |   |   |   | – |   |
|           |            |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|           |            |   |                                      |   | 641,357 |   |   | $ | 9.42 |   |   | $ | 714 |   |   | 1 year |   |

----

Table of Contents

|                                  |   | Years ended August 31, |      |
|---------------------------------------|--------|------------------------|-----------|
|                                  |   |                   |      |   |   |   |   |   |   |
|                                  |   | 2011                   |      |   | 2010 |   |   | 2009 |   |
|                                  |   |                   |      |   |   |   |   |   |   |
| Outstanding – Beginning of year |   |                   | 1,603,048 |   |   |   | 1,339,619 |   |   |   | 847,791 |   |
| Granted                               |   |                   | 350,382   |   |   |   | 415,538 |   |   |   | 685,972 |   |
| Redeemed                              |   |                   | (340,974  | ) |   |   | (120,307 | ) |   |   | (106,190 | ) |
| Forfeited                             |   |                   | (60,798   | ) |   |   | (31,802 | ) |   |   | (87,954 | ) |
|                                  |   |                   |      |   |   |   |   |   |   |   |   |   |
| Outstanding – End of year       |   |                   | 1,551,658 |   |   |   | 1,603,048 |   |   |   | 1,339,619 |   |

|                                  |   | Years ended August 31, |    |
|---------------------------------------|--------|------------------------|---------|
|                                  |   |                   |    |   |   |   |   |   |   |
|                                  |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                                  |   |                   |    |   |   |   |   |   |   |
| Outstanding – Beginning of year |   |                   | 135,003 |   |   |   | 114,924 |   |   |   | 79,185 |   |
| Granted                               |   |                   | 12,786  |   |   |   | 20,079 |   |   |   | 35,739 |   |
| Redeemed                              |   |                   | (37,491 | ) |   |   | − |   |   |   | − |   |
|                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
| Outstanding – End of year       |   |                   | 110,298 |   |   |   | 135,003 |   |   |   | 114,924 |   |

----

Table of Contents

|                                  |   | Years ended August 31, |    |
|---------------------------------------|--------|------------------------|---------|
|                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   | Number                 |    |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |   | Number |   |   | Weightedaverageexerciseprice |   |
|                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding – Beginning of year |   |                   | 44,374  |   |   | $ | 8 |   |   |   | 40,374 |   |   | $ | 8 |   |   |   | 30,700 |   |   | $ | 10 |   |
| Granted                               |   |                   | 4,500   |   |   |   | – |   |   |   | 4,000 |   |   |   | 4 |   |   |   | 9,674 |   |   |   | 2 |   |
| Exercised                             |   |                   | (14,750 | ) |   |   | 5 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
| Expired                               |   |                   | (5,000  | ) |   |   | 34 |   |   |   | – |   |   |   | – |   |   |   | – |   |   |   | – |   |
|                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding – End of year       |   |                   | 29,124  |   |   | $ | 3 |   |   |   | 44,374 |   |   | $ | 8 |   |   |   | 40,374 |   |   | $ | 8 |   |
|                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable – End of year       |   |                   | 10,075  |   |   | $ | 5 |   |   |   | 28,318 |   |   | $ | 10 |   |   |   | 24,475 |   |   | $ | 11 |   |

|           |                 |   | Stock appreciationrights outstanding |   | Stock appreciationrights exercisable      |   |
|----------------|----------------------|--------|--------------------------------------|--------|-------------------------------------------|--------|
|           |                 |   |                                 |   |                                      |   |   |   |
| Exercise price |                 |   | Number                               |   | Weighted averageremaining contractuallife |   | Number |   |
|           |                 |   |                                 |   |                                      |   |   |   |
| $              |    – |   |                                 |   | 4,500                                     |   | 9 years |   |   | – |   |
| $              | 2.36                 |   |                                 |   | 9,674                                     |   | 7 years |   |   | 6,500 |   |
| $              | 3.74 to $4.65        |   |                                 |   | 10,500                                    |   | 5 years |   |   | 3,575 |   |
| $              | 6.28 to $6.50        |   |                                 |   | 4,450                                     |   | 5 years |   |   | – |   |
|           |                 |   |                                 |   |                                      |   |   |   |   |   |   |
|           |                 |   |                                 |   | 29,124                                    |   | 6 years |   |   | 10,075 |   |

----

Table of Contents

|  18 |  Other Disclosures |
|----------|-------------------------|

|                                            |   | Years ended August 31, |   |
|-------------------------------------------------|--------|------------------------|--------|
|                                            |   |                   |   |   |   |   |   |   |   |
|                                            |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                                            |   |                   |   |   |   |   |   |   |   |
| Gross research and development expenses         |   | $                      | 57,226 |   |   | $ | 44,551 |   |   | $ | 33,584 |   |
| Research and development tax credits and grants |   |                   | (9,299 | ) |   |   | (6,704 | ) |   |   | (6,371 | ) |
|                                            |   |                   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | $                      | 47,927 |   |   | $ | 37,847 |   |   | $ | 27,213 |   |

| ·   | Deferred profit-sharing plan |
|--------------------|------------------------------|

| ·   | 401K plan |
|--------------------|-----------|

----

Table of Contents

|  19 |  Income Taxes |
|----------|--------------------|

|                                                                                                                               |   | Years ended August 31, |    |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                                               |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |
| Income tax provision at the combined Canadian federal and provincial statutory tax rate (29% in 2011, 30% in 2010 and 31% in 2009) |   | $                      | 4,410   |   |   | $ | 2,724 |   |   | $ | (6,383 | ) |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
| Increase (decrease) due to:                                                                                                        |   |                   |    |   |   |   |   |   |   |   |   |   |
| Foreign income taxed at different rates                                                                                            |   |                   | (327    | ) |   |   | (459 | ) |   |   | 56 |   |
| Non-taxable income                                                                                                                 |   |                   | (3,404  | ) |   |   | (787 | ) |   |   | (211 | ) |
| Non-deductible expenses                                                                                                            |   |                   | 916     |   |   |   | 851 |   |   |   | 5,200 |   |
| Change in tax rates                                                                                                                |   |                   | – |   |   |   | 97 |   |   |   | – |   |
| Foreign exchange effect of translation of foreign integrated subsidiaries                                                          |   |                   | 2,541   |   |   |   | (55 | ) |   |   | 189 |   |
| Other                                                                                                                              |   |                   | (402    | ) |   |   | (27 | ) |   |   | 638 |   |
| Utilization of previously unrecognized  future income tax assets                                                         |   |                   | (61     | ) |   |   | (349 | ) |   |   | (68 | ) |
| Unrecognized future income tax assets on temporary deductible differences and unused tax losses and deductions                     |   |                   | 5,110   |   |   |   | 3,534 |   |   |   | 845 |   |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   | $                      | 8,783   |   |   | $ | 5,529 |   |   | $ | 266 |   |
| The income tax provision consists of the following:                                                                                |   |                   |    |   |   |   |   |   |   |   |   |   |
| Current                                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |
| Canada                                                                                                                             |   | $                      | 9       |   |   | $ | 13 |   |   | $ | 87 |   |
| Other                                                                                                                              |   |                   | 1,916   |   |   |   | 702 |   |   |   | 500 |   |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   |                   | 1,925   |   |   |   | 715 |   |   |   | 587 |   |
| Future                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |
| Canada                                                                                                                             |   |                   | 5,999   |   |   |   | 4,316 |   |   |   | 1,045 |   |
| Finland                                                                                                                            |   |                   | (3,156  | ) |   |   | (928 | ) |   |   | – |   |
| United States                                                                                                                      |   |                   | (738    | ) |   |   | (1,501 | ) |   |   | (2,511 | ) |
| Other                                                                                                                              |   |                   | (296    | ) |   |   | (258 | ) |   |   | 368 |   |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   |                   | 1,809   |   |   |   | 1,629 |   |   |   | (1,098 | ) |
| Valuation allowance                                                                                                                |   |                   |    |   |   |   |   |   |   |   |   |   |
| Canada                                                                                                                             |   |                   | 426     |   |   |   | 7 |   |   |   | 236 |   |
| Finland                                                                                                                            |   |                   | 3,156   |   |   |   | 928 |   |   |   | – |   |
| United States                                                                                                                      |   |                   | 1,426   |   |   |   | 2,203 |   |   |   | 604 |   |
| Other                                                                                                                              |   |                   | 41      |   |   |   | 47 |   |   |   | (63 | ) |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   |                   | 5,049   |   |   |   | 3,185 |   |   |   | 777 |   |
|                                                                                                                               |   |                   | 6,858   |   |   |   | 4,814 |   |   |   | (321 | ) |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   | $                      | 8,783   |   |   | $ | 5,529 |   |   | $ | 266 |   |
| The income tax provision for the discontinued operations is as follows:                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |
| Current                                                                                                                            |   | $                      | 27      |   |   | $ | 163 |   |   | $ | (25 | ) |
| Future                                                                                                                             |   |                   | (6,649  | ) |   |   | 972 |   |   |   | 21 |   |
| Valuation allowance                                                                                                                |   |                   | 6,823   |   |   |   | – |   |   |   | – |   |
|                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                               |   | $                      | 201     |   |   | $ | 1,135 |   |   | $ | (4 | ) |

----

Table of Contents

|                                         |   | Years ended August 31, |    |
|----------------------------------------------|--------|------------------------|---------|
|                                         |   |                   |    |   |   |   |   |   |   |
|                                         |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                                         |   |                   |    |   |   |   |   |   |   |
| Details of the company’s income taxes: |   |                   |    |   |   |   |   |   |   |
| Earnings (loss) before income taxes          |   |                   |    |   |   |   |   |   |   |
| Canada                                       |   | $                      | 21,894  |   |   | $ | 12,403 |   |   | $ | (15,611 | ) |
| Finland                                      |   |                   | (14,760 | ) |   |   | (1,921 | ) |   |   | – |   |
| United States                                |   |                   | 3,128   |   |   |   | (4,546 | ) |   |   | (5,026 | ) |
| Other                                        |   |                   | 4,944   |   |   |   | 3,143 |   |   |   | 46 |   |
|                                         |   | $                      | 15,206  |   |   | $ | 9,079 |   |   | $ | (20,591 | ) |

|                                 |   | As at August 31, |    |
|--------------------------------------|--------|------------------|---------|
|                                 |   |             |    |   |   |   |
|                                 |   | 2011             |    |   | 2010 |   |
|                                 |   |             |    |   |   |   |
| Future income tax assets             |   |             |    |   |   |   |
| Long-lived assets                    |   | $                | 5,262   |   |   | $ | 5,473 |   |
| Provisions and accruals              |   |             | 3,279   |   |   |   | 3,797 |   |
| Deferred revenue                     |   |             | 1,983   |   |   |   | 1,983 |   |
| Research and development expenses    |   |             | 5,515   |   |   |   | 9,954 |   |
| Losses carried forward               |   |             | 45,584  |   |   |   | 34,322 |   |
|                                 |   |             |    |   |   |   |   |   |
|                                 |   |             | 61,623  |   |   |   | 55,529 |   |
|                                 |   |             |    |   |   |   |   |   |
| Valuation allowance                  |   |             | (34,516 | ) |   |   | (21,277 | ) |
|                                 |   |             |    |   |   |   |   |   |
|                                 |   |             | 27,107  |   |   |   | 34,252 |   |
|                                 |   |             |    |   |   |   |   |   |
| Future income tax liabilities        |   |             |    |   |   |   |   |   |
| Research and development tax credits |   |             | (9,698  | ) |   |   | (7,793 | ) |
| Long-lived assets                    |   |             | (5,168  | ) |   |   | (7,161 | ) |
| Deferred revenue                     |   |             | – |   |   |   | (223 | ) |
|                                 |   |             |    |   |   |   |   |   |
|                                 |   |             | (14,866 | ) |   |   | (15,177 | ) |
|                                 |   |             |    |   |   |   |   |   |
| Future income tax assets, net        |   | $                | 12,241  |   |   | $ | 19,075 |   |

----

Table of Contents

|           |   | Canada  |    |   |       |   |    |    |   |   |          |   |
|----------------|--------|---------|---------|--------|------------|--------|---------|---------|--------|--------|---------------|--------|
| Year of expiry |   | Federal |    |   | Provincial |   |    | Finland |   |   | United States |   |   | Other |   |
|           |   |    |    |   |       |   |    |    |   |   |          |   |   |   |   |
| 2012           |   | $       | – |   |       | $      | – |    |   | $      | 2,417         |   |   | $ | – |   |   | $ | – |   |
| 2013           |   |    | – |   |       |   | – |    |   |   | 8,096         |   |   |   | – |   |   |   | – |   |
| 2014           |   |    | – |   |       |   | – |    |   |   | 4,896         |   |   |   | – |   |   |   | – |   |
| 2015           |   |    | 1,217   |   |       |   | 1,217   |    |   |   | 3,172         |   |   |   | – |   |   |   | 67 |   |
| 2016           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | – |   |   |   | 75 |   |
| 2017           |   |    | – |   |       |   | – |    |   |   | 4             |   |   |   | – |   |   |   | 4 |   |
| 2018           |   |    | – |   |       |   | – |    |   |   | 418           |   |   |   | – |   |   |   | 103 |   |
| 2019           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 741 |   |   |   | 86 |   |
| 2020           |   |    | – |   |       |   | – |    |   |   | 10,197        |   |   |   | 3,470 |   |   |   | – |   |
| 2021           |   |    | – |   |       |   | – |    |   |   | 7,997         |   |   |   | 10,202 |   |   |   | – |   |
| 2022           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 7,434 |   |   |   | – |   |
| 2023           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 6,033 |   |   |   | – |   |
| 2024           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 3,954 |   |   |   | – |   |
| 2025           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 8,449 |   |   |   | – |   |
| 2026           |   |    | 1,099   |   |       |   | 1,099   |    |   |   | –       |   |   |   | 4,126 |   |   |   | – |   |
| 2027           |   |    | 1,394   |   |       |   | 1,394   |    |   |   | –       |   |   |   | 1,355 |   |   |   | – |   |
| 2028           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 2,472 |   |   |   | – |   |
| 2029           |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 2,621 |   |   |   | – |   |
| 2030           |   |    | 12      |   |       |   | 12      |    |   |   | –       |   |   |   | 2,713 |   |   |   | – |   |
| 2031           |   |    | 39      |   |       |   | 39      |    |   |   | –       |   |   |   | 664 |   |   |   | – |   |
| Indefinite     |   |    | – |   |       |   | – |    |   |   | –       |   |   |   | 8,824 |   |   |   | 5,137 |   |
|           |   |    |    |   |       |   |    |    |   |   |          |   |   |   |   |   |   |   |   |   |
|           |   | $       | 3,761   |   |       | $      | 3,761   |    |   | $      | 37,197        |   |   | $ | 63,058 |   |   | $ | 5,472 |   |

|                 |   | Canada  |    |   |       |   |    |    |   |
|----------------------|--------|---------|---------|--------|------------|--------|---------|---------|--------|
| Carry-forward period |   | Federal |    |   | Provincial |   |    | Finland |   |   | United States |   |
|                 |   |    |    |   |       |   |    |    |   |   |   |   |
| 2012                 |   | $       | – |   |       | $      | – |    |   | $ | 1,806 |   |   | $ | – |   |
| 2013                 |   |    | – |   |       |   | – |    |   |   | 1,375 |   |   |   | 1,726 |   |
| 2014                 |   |    | – |   |       |   | – |    |   |   | 724 |   |   |   | 1,404 |   |
| 2015                 |   |    | – |   |       |   | – |    |   |   | 113 |   |   |   | 997 |   |
| 2016                 |   |    | – |   |       |   | – |    |   |   | – |   |   |   | 553 |   |
| Indefinite           |   |    | 12,293  |   |       |   | 5,925   |    |   |   | – |   |   |   | – |   |
|                 |   |    |    |   |       |   |    |    |   |   |   |   |   |   |   |   |
|                 |   | $       | 12,293  |   |       | $      | 5,925   |    |   | $ | 4,018 |   |   | $ | 4,680 |   |

----

Table of Contents

|           |   | Canada  |   |
|----------------|--------|---------|--------|
| Year of expiry |   | Federal |   |   | Provincial |   |
|           |   |    |   |   |   |   |
| 2018           |   | $       | 537    |   |   | $ | – |   |
| 2019           |   |    | 1,170  |   |   |   | – |   |
| 2020           |   |    | 1,541  |   |   |   | – |   |
| 2021           |   |    | 1,774  |   |   |   | – |   |
| 2022           |   |    | 1,498  |   |   |   | – |   |
| 2023           |   |    | 1,532  |   |   |   | – |   |
| 2024           |   |    | 391    |   |   |   | – |   |
| 2025           |   |    | 3,074  |   |   |   | – |   |
| 2026           |   |    | 3,425  |   |   |   | – |   |
| 2027           |   |    | 3,931  |   |   |   | – |   |
| 2028           |   |    | 4,306  |   |   |   | – |   |
| 2029           |   |    | 4,443  |   |   |   | 280 |   |
| 2030           |   |    | 4,045  |   |   |   | 206 |   |
| 2031           |   |    | 4,237  |   |   |   | 230 |   |
|           |   |    |   |   |   |   |   |   |
|           |   | $       | 35,904 |   |   | $ | 716 |   |

|  20 |  Earnings per Share |
|----------|--------------------------|

|                                                                                                                                                                                                              |   | Years ended August 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                              |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |
| Basic weighted average number of shares outstanding (000’s)                                                                                                                                                 |   |                   | 60,000 |   |   |   | 59,479 |   |   |   | 61,845 |   |
| Plus dilutive effect of (000’s):                                                                                                                                                                            |   |                   |   |   |   |   |   |   |   |   |   |   |
| Stock options                                                                                                                                                                                                     |   |                   | 266    |   |   |   | 228 |   |   |   | 131 |   |
| Restricted share units                                                                                                                                                                                            |   |                   | 1,106  |   |   |   | 786 |   |   |   | 311 |   |
| Deferred share units                                                                                                                                                                                              |   |                   | 116    |   |   |   | 123 |   |   |   | 94 |   |
|                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average number of shares outstanding (000’s)                                                                                                                                               |   |                   | 61,488 |   |   |   | 60,616 |   |   |   | 62,381 |   |
|                                                                                                                                                                                                              |   |                   |   |   |   |   |   |   |   |   |   |   |
| Stock awards excluded from the calculation of the diluted weighted average number of shares outstanding because their exercise price was greater than the average market price of the common shares (000’s) |   |                   | 381    |   |   |   | 960 |   |   |   | 1,602 |   |

----

Table of Contents

|  21 |  Segment Information |
|----------|---------------------------|

|                           |   | Years ended August 31, |    |
|--------------------------------|--------|------------------------|---------|
|                           |   |                   |    |   |   |   |   |   |   |
|                           |   | 2011                   |    |   | 2010 |   |   | 2009 |   |
|                           |   |                   |    |   |   |   |   |   |   |
| United States                  |   | $                      | 89,240  |   |   | $ | 76,669 |   |   | $ | 61,757 |   |
| Canada                         |   |                   | 30,986  |   |   |   | 18,278 |   |   |   | 17,331 |   |
| Latin America                  |   |                   | 17,303  |   |   |   | 11,454 |   |   |   | 7,729 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Americas                       |   |                   | 137,529 |   |   |   | 106,401 |   |   |   | 86,817 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| United Kingdom                 |   |                   | 15,617  |   |   |   | 10,936 |   |   |   | 6,188 |   |
| Other                          |   |                   | 69,698  |   |   |   | 49,288 |   |   |   | 36,466 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Europe, Middle-East and Africa |   |                   | 85,315  |   |   |   | 60,224 |   |   |   | 42,654 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| China                          |   |                   | 25,799  |   |   |   | 17,610 |   |   |   | 13,784 |   |
| Other                          |   |                   | 21,100  |   |   |   | 18,522 |   |   |   | 9,827 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Asia-Pacific                   |   |                   | 46,899  |   |   |   | 36,132 |   |   |   | 23,611 |   |
|                           |   |                   |    |   |   |   |   |   |   |   |   |   |
|                           |   | $                      | 269,743 |   |   | $ | 202,757 |   |   | $ | 153,082 |   |

|          |   | As at August 31,            |   |
|---------------|--------|-----------------------------|--------|
|          |   |                        |   |   |   |   |
|          |   | 2011                        |   |   | 2010 |   |
|          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          |   | Property,plant andequipment |   |   | Intangibleassets |   |   | Goodwill |   |   | Property,plant andequipment |   |   | Intangibleassets |   |   | Goodwill |   |
|          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Canada        |   | $                           | 19,696 |   |   | $ | 3,164 |   |   | $ | − |   |   | $ | 13,753 |   |   | $ | 3,316 |   |   | $ | − |   |
| United States |   |                        | 1,402  |   |   |   | 4,834 |   |   |   | 17,782 |   |   |   | 1,829 |   |   |   | 7,828 |   |   |   | 17,782 |   |
| Finland       |   |                        | 1,544  |   |   |   | 13,324 |   |   |   | 13,160 |   |   |   | 1,606 |   |   |   | 14,906 |   |   |   | 11,573 |   |
| India         |   |                        | 4,709  |   |   |   | 43 |   |   |   | – |   |   |   | 3,134 |   |   |   | 43 |   |   |   | – |   |
| China         |   |                        | 2,696  |   |   |   | 27 |   |   |   | − |   |   |   | 2,665 |   |   |   | 33 |   |   |   | − |   |
| Other         |   |                        | 519    |   |   |   | 1,509 |   |   |   | − |   |   |   | 468 |   |   |   | 1,821 |   |   |   | − |   |
|          |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          |   | $                           | 30,566 |   |   | $ | 22,901 |   |   | $ | 30,942 |   |   | $ | 23,455 |   |   | $ | 27,947 |   |   | $ | 29,355 |   |

----

Table of Contents

|  22 |  United States Generally Accepted Accounting Principles |
|----------|--------------------------------------------------------------|

|                                                                                                              |   |   |   |   | Years ended August 31, |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|------------------------|--------|
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   | 2011                   |   |   | 2010 |   |   | 2009 |   |
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year in accordance with Canadian GAAP                                            |   |   |   |   | $                      | 19,349 |   |   | $ | 6,619 |   |   | $ | (16,585 | ) |
| Gain on disposal of discontinued operations                                                                       |   |   | a      | )      |                   |   | 4,130 |   |   |   | − |   |   |   | − |   |
| Acquisition-related costs on business combination                                                                 |   |   | b      | )      |                   |   | − |   |   |   | (2,842 | ) |   |   | – |   |
| Impairment of goodwill                                                                                            |   |   | c      | )      |                   |   | − |   |   |   | − |   |   |   | 8,406 |   |
| Changes in fair value of cash contingent consideration                                                            |   |   | b      | )      |                   |   | 2,685 |   |   |   | − |   |   |   | − |   |
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) for the year in accordance with U.S. GAAP                                                     |   |   |   |   |                   |   | 26,164 |   |   |   | 3,777 |   |   |   | (8,179 | ) |
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                                           |   |   | b      | )      |                   |   | 19,264 |   |   |   | 3,952 |   |   |   | (10,671 | ) |
| Changes in unrealized losses on available-for-sale securities                                                     |   |   |   |   |                   |   | 2 |   |   |   | − |   |   |   | 22 |   |
| Unrealized gains (losses) on forward exchange contracts                                                           |   |   |   |   |                   |   | 3,413 |   |   |   | 940 |   |   |   | (1,467 | ) |
| Reclassification of realized (gains) losses on forward exchange contracts in net earnings (loss)                  |   |   |   |   |                   |   | (2,191 | ) |   |   | (1,022 | ) |   |   | 3,167 |   |
| Future income taxes effect of the above items                                                                     |   |   |   |   |                   |   | (314 | ) |   |   | 24 |   |   |   | (528 | ) |
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss) under U.S. GAAP                                                                       |   |   |   |   |                   | $      | 46,338 |   |   | $ | 7,671 |   |   | $ | (17,656 | ) |
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. GAAP net earnings (loss) are comprised of:                                                                   |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) from continuing operations                                                                    |   |   |   |   |                   | $      | 9,108 |   |   | $ | 708 |   |   | $ | (12,451 | ) |
| Net earnings from discontinued operations                                                                         |   |   |   |   |                   |   | 17,056 |   |   |   | 3,069 |   |   |   | 4,272 |   |
|                                                                                                              |   |   |   |   |                   | $      | 26,164 |   |   | $ | 3,777 |   |   | $ | (8,179 | ) |
|                                                                                                              |   |   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic net and diluted earnings (loss) from continuing operations per share in accordance with U.S. GAAP |   |   |   |   |                   | $      | 0.15 |   |   | $ | 0.01 |   |   | $ | (0.20 | ) |
| Basic and diluted net earnings from discontinued operations per share in accordance with U.S. GAAP      |   |   |   |   |                   | $      | 0.28 |   |   | $ | 0.05 |   |   | $ | 0.07 |   |
| Basic net earnings (loss) per share in accordance with U.S. GAAP                                             |   |   |   |   |                   | $      | 0.44 |   |   | $ | 0.06 |   |   | $ | (0.13 | ) |
| Diluted net earnings (loss) per share in accordance with U.S. GAAP                                           |   |   |   |   |                   | $      | 0.43 |   |   | $ | 0.06 |   |   | $ | (0.13 | ) |

----

Table of Contents

|                                                         |   |   |   |   | As at August 31, |    |
|--------------------------------------------------------------|--------|--------|--------|--------|------------------|---------|
|                                                         |   |   |   |   |             |    |   |   |   |
|                                                         |   |   |   |   | 2011             |    |   | 2010 |   |
|                                                         |   |   |   |   |             |    |   |   |   |
| Shareholders’ equity in accordance with Canadian GAAP  |   |   |   |   | $                | 263,746 |   |   | $ | 220,419 |   |
| Goodwill                                                     |   |   | c      | )      |             |    | 47 |   |   |   | 42 |   |
| Long-term assets held for sale                               |   |   | c      | )      |             |    | − |   |   |   | (3,988 | ) |
| Cash contingent consideration payable                        |   |   | b      | )      |             |    | (338 | ) |   |   | (2,660 | ) |
| Stock appreciation rights                                    |   |   | d      | )      |             |    | (73 | ) |   |   | (73 | ) |
|                                                         |   |   |   |   |             |    |   |   |   |   |   |   |
| Shareholders’ equity in accordance with U.S. GAAP |   |   |   |   |             | $       | 263,382 |   |   | $ | 213,740 |   |

| a)   | Gain on disposal of discontinued operations |
|----------------|---------------------------------------------|

----

Table of Contents

| b)   | Business combination |
|----------------|----------------------|

| c)   | Goodwill |
|----------------|----------|

| d)   | Stock-based compensation costs related to stock appreciation rights |
|----------------|---------------------------------------------------------------------|

----

Table of Contents

| e)   | Research and development tax credits |
|----------------|--------------------------------------|

| f)   | Gross margin |
|----------------|--------------|

| g)   | New accounting standards and pronouncements |
|----------------|---------------------------------------------|

----

Table of Contents

|                                            |   | Years ended August 31, |    |
|-------------------------------------------------|--------|------------------------|---------|
|                                            |   |                   |    |   |   |   |
|                                            |   | 2010                   |    |   | 2009 |   |
|                                            |   |                   |    |   |   |   |
|                                            |   | (unaudited)            |    |
|                                            |   |                   |    |   |   |   |
| Sales                                           |   | $                      | 220,621 |   |   | $ | 191,040 |   |
| Net earnings (loss)                             |   | $                      | 2,119   |   |   | $ | (19,317 | ) |
| Basic and diluted net earnings (loss) per share |   | $                      | 0.04    |   |   | $ | (0.31 | ) |

----