June 12, 2009 16:04 ET

Cybersurf Corp. Completes Sale of Assets

CALGARY, ALBERTA--(Marketwire - June 12, 2009) - Cybersurf Corp. ("Cybersurf") (TSX VENTURE:CY), announces that on June 10, 2009, it successfully completed the sale of substantially all of the assets of Cybersurf and its subsidiaries to Communication Telosysteme Inc. ("Telosysteme") an affiliate of Distributel Communications Limited ("Distributel") for an aggregate purchase price of $5,500,000, subject to post closing adjustments and holdback provisions, as described in Cybersurf's Management Information Circular dated April 9, 2009. The assets sold by Cybersurf to Telosysteme include all of Cybersurf's assets relating to its Internet access user bases, including high speed, long distance and VoIP telephone services in Canada, the associated underlying agreements and relevant assets, and shares of certain wholly-owned subsidiaries of Cybersurf.

The asset sale was approved by Cybersurf shareholders at an annual and special meeting held May 29, 2009, and was carried out in accordance with the terms and conditions of an Asset Purchase Agreement dated June 10, 2009, with an effective date of June 1, 2009.

Paul Mercia, President and CEO of Cybersurf stated; "On behalf of the Board of Directors, we are pleased that the sale has successfully completed. Over the past few months, I've had the opportunity to work closely with the management of Distributel and have noted their integrity, professionalism and commitment to excellent customer service. We believe Cybersurf's customers will be left in good hands for the future. However, this event is also a bittersweet moment in the fifteen plus year history of the corporation. Had it not been for the stress the company has had to endure as a result of the prolonged and on-going billing dispute with Bell Canada, we are confident that Cybersurf could have continued to operate as a viable going concern."

Mel Cohen, President of Distributel said, "We're excited about the opportunities this business transition brings to us-expanding our market base into western Canada and the addition of cable internet to our service portfolio. We're also impressed with the competent Cybersurf employees in Calgary, Thunder Bay and Ottawa that will joining our Distributel team. Special thanks to Paul and Marcel Mercia, their staff, our staff and all the professional advisors for their hard work in making the transaction possible."

About Distributel

Distributel Communications Limited is a privately held Canadian corporation in business since 1988. Together with it's Quebec-based affiliate Communication Telosysteme Inc., which operates as Distributel, it provides long distance, internet, teleconferencing and local telephone services to some 200,000 Canadians. Throughout its history Distributel has been committed to providing innovative, high quality telecommunications services at discount prices.

About Cybersurf Corp.

Cybersurf is an independent Internet and communications company providing consumers in the United States and Canada with a value-driven alternative to large incumbent carriers. Cybersurf prides itself on providing the highest possible quality of services at the lowest possible prices and is one of Canada's largest independent Internet service providers.

Cybersurf believes consumers want 'The Freedom of Choice' that comes with having a truly independent provider as an alternative to larger incumbent telephone companies or cable carriers -- a choice that allows users to connect to the Internet how they want and with an independent provider that focuses on the needs of today's average user by providing quality service at the best possible price. Cybersurf is that choice.

Cybersurf's common shares trade on the TSX Venture Exchange under the trading symbol "CY".

Note: Cybersurf is currently subject to Cease Trade Orders issued by the Alberta Securities Commission on December 30, 2008 and the Ontario Securities Commission on January 16, 2009.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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