EXFO Renews Normal Course Issuer Bid

EXFO Inc. EXFO announced today that its Board of Directors has authorized the renewal of its share repurchase program, by way of a normal course issuer bid ("NCIB") on the open market, of up to 10% (1,397,598 subordinate voting shares) of the public float (13,975,983 subordinate voting shares as of March 20, 2015) as defined by the Toronto Stock Exchange ("TSX"). EXFO had 22,221,590 subordinate voting shares outstanding on March 20, 2015. As of March 20, 2015, EXFO had repurchased in the course of the previous renewal of its NCIB a total of 450,956 shares, being 139,986 shares on the TSX at a weighted average amount of CA$ 4.35 and 310,970 shares on the NASDAQ at a weighted average amount of US$ 3.96 (of which were repurchased in the last 12 months: 78,056 shares on the TSX at a weighted average amount of CA$ 4.03 and 158,430 shares on the NASDAQ at a weighted average amount of US$ 3.60, for a total of 236,486 shares). The previous renewal of the NCIB had been effective since January 13, 2013 and expired on January 12, 2014. The TSX has accepted a notice filed by EXFO of its intention to renew its NCIB. EXFO may use cash, short-term investments and future cash flows from operations to fund the repurchase of shares. Repurchases under the bid will be made on the open market, through the facilities of the TSX and NASDAQ Global Market, at the prevailing market price. The timing of such repurchases, if any, will depend on price, market conditions and applicable regulatory requirements. The NCIB will become effective on March 27, 2015 and end on March 26, 2015 or on an earlier date if EXFO repurchases the maximum number of shares permitted. The average daily trading volume (ADTV) of EXFO's subordinate voting shares was 17,331 on the TSX and 29,248 on the NASDAQ over the last six months preceding March 20, 2015. Accordingly, EXFO is entitled to repurchase up to 25% of the ADTV on any trading day (being 4,332 subordinate voting shares on the TSX and 7,312 subordinate voting shares on the NASDAQ) or pursuant to the applicable rules of the TSX. The program does not require the company to repurchase a minimum number of shares and it may be modified, suspended or terminated at any time without prior notice. All shares acquired by EXFO under the bid will be cancelled. EXFO believes that the repurchase of some of its subordinate voting shares is an appropriate and desirable use of its available cash. Consequently, EXFO believes that the offer is made in the best interests of the company and its shareholders.