TORONTO, ONTARIO--(Marketwire - May 5, 2011) -


Enablence Technologies Inc. (TSX VENTURE:ENA) ("Enablence" or the "Company"), a leading supplier of optical components and subsystems for access, metro and long-haul markets and fiber-to-the-home ("FTTH") equipment and multi-services access platform for triple-play residential and business services today announced the closing of the non-brokered private placement financing announced on April 28, 2011. The Company issued 45,500,000 common shares ("Offered Shares") at a price of $0.22 per Offered Share for gross proceeds of $10,010,000 (the "Offering"). The Offered Shares were subscribed for by several institutional investors and by Paradigm Capital Inc. The Offered Shares will be subject to a four month hold period pursuant to applicable securities laws expiring on September 5, 2011.

One of the institutional investors (an "Insider") is a related party within the meaning of Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Consequently, the participation of the Insider in the Offering constitutes a Related Party Transaction within the meaning of MI 61-101 requiring the Corporation, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the Related Party Transaction. The Corporation has determined that an exemption is available from the formal valuation requirements and the minority shareholder approval requirements under MI 61-101, namely, the fair market value of the Offered Shares subscribed for by the Insider does not exceed 25% of the Company's market capitalization. This information is being filed less than 21 days prior to the closing of the Related Party Transaction. The shorter period was necessary in order to permit the Corporation to close the Offering, including the Related Party Transaction, in a timeframe consistent with usual market practice for transactions of this nature.

The Company will use the proceeds from the Offering primarily towards the growth and expansion of its Components Division, including the cash funding of Enablence's investment in the joint venture with SUNSEA Telecommunications Co., Ltd. of China.

As announced in the Company's press release on April 28, 2011, the Company continues to explore all strategic alternatives for the most value-enhancing and efficient divestiture of its Systems Division.

About Enablence Technologies Inc.

Enablence Technologies Inc. is a publicly traded company that designs, manufactures and sells optical components and subsystems for access, metro and long-haul markets to a global customer base and fiber-to-the-home (FTTH) equipment and multi-service access platforms for triple-play residential and business services. Enablence delivers a key portion of the infrastructure for next-generation telecommunication systems. The Company's product lines address all three segments of optical networks: Access, connecting homes and businesses to the network; Metro, communication rings within large cities; and Long-haul, linking cities and continents. The Company's Access solutions enable voice, data, video, and Internet communications across both copper and fiber-based network infrastructures.

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Forward-looking Statements

This press release may contain forward-looking statements, in particular with respect to the use of proceeds of the financing, the funding of the joint venture in China and the future growth of the Components Division (including the joint venture) and the divestiture of the Systems Division, that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution our readers of this press release not to place undue reliance on our forward looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's continuous disclosure documents that can be found on SEDAR Enablence does not intend, and disclaims any obligation, except as required by law, to update or revise any forward looking statements whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information:

Enablence Technologies Inc.
Tim Thorsteinson
Chief Executive Officer
(647) 729-1605