Dividend

Quarterhill announced the declaration of its first dividend on June 3, 2009.

Future Dividend Payments

Subject to declaration by Quarterhill’s board of directors, Quarterhill expects to pay dividends on the following dates.

Future dividend payments will be subject to an ongoing evaluation and approval by the Board on a quarterly basis. The decision as to the amount and timing of future dividends paid by Quarterhill, if any, will be made by the Board in light of the Company’s financial condition, capital requirements and growth plans, as well as other factors the Board may deem relevant, and there can be no assurance as to whether any such future dividends will be declared or, if declared, as to the amount and timing of the payment of any such future dividends. Quarterhill intends to continue to declare quarterly dividends but there can be no assurance as to the amount or payment of such dividends in the future.

Past Dividend Payments

Pursuant to Canadian tax legislation, dividends paid by Quarterhill Inc. to Canadian resident individuals are designated as "eligible dividends" for income tax purposes. Individuals reporting income from eligible dividends are entitled to a gross-up and dividend tax credit on such dividends. Please consult with your own tax advisor for advice with respect to the income tax consequences to you of Quarterhill Inc. designating dividends paid on its common shares as “eligible dividends”.