SOURCE: NextPhase Wireless

October 22, 2007 09:02 ET

NextPhase Wireless CEO Issues Operational Update Providing Insight Into Key Corporate Developments

Board of Directors Approves 1:20 Reverse Stock Split; Early Execution of Three-Year Plan Providing Framework for Dynamic Future Growth

ANAHEIM, CA--(Marketwire - October 22, 2007) - Robert Ford, Chief Executive Officer of NextPhase Wireless, Inc. (OTCBB: NXPW), a next-generation wireless connectivity solutions provider specializing in integrated Internet, voice and data communication, today issued the following operational update detailing key corporate developments that are expected to positively impact and support the Company's long term, value-driven growth strategy. Specifically, Ford stated:

"Because we fully understand and appreciate that the overriding responsibility of a public company is to build and enhance value for its shareholders, NextPhase Wireless has committed to delivering superior returns to its investors through the systematic execution of strategies designed to promote dynamic, yet intelligent, growth.

"In 2006, our management team mapped out an ambitious three-year plan of action to earn NextPhase distinction as an industry dominant provider of broadband wireless access and turnkey wireless networks, with primary emphasis on addressing surging wireless demand from underserved secondary (non-metro) U.S. markets. As we near the end of 2007, I am pleased to confirm that NextPhase is indeed on pace to meet and, in fact exceed, our initial goals and objectives in keeping with our original plan. To illustrate, consider that NextPhase has achieved the following since January of this year:

--  Completed the acquisition of two leading regional ISPs --
    SpeedFactory, Inc. (formerly Synkronus, Inc.) and Interactive Network
    Services, Inc. -- and signed Letters of Intent to acquire DSL Express, Inc.
    and ARINC-Cybertime, with closings expected to occur prior to the end of
    this year.  Upon completion of the latter two acquisitions, we anticipate
    that our combined FY08 revenues (ending March 31, 2008) will be greater
    than $5 million and we will be profitable.
    
--  Established our Wireless Network Operations Center in Anaheim,
    California; and sales, admin and tech support centers in Blackwood, New
    Jersey and Marietta, Georgia (with Coral Springs, Florida to be added
    following the completion of the DSL Express acquisition);
    
--  Expanded our national wireless footprint in Arizona, California,
    Georgia and Florida, and expanded ISP coverage in 19 U.S. states;
    
--  Built a base of more than 10,000 customers, comprised largely of
    businesses, public school districts and municipalities in the regions we
    service;
    
--  Formed business collaborations and/or partnerships with several key
    industry leaders, including Alvarion, BridgeWave, OnSat, American Tower,
    Microsoft, GigaBeam and WebWand, among others;
    
--  Expanded our portfolio of products and solutions, thus promoting cost-
    effective bundling of services;  this included the addition of managed IT
    services that focus on delivering affordable security, disaster recovery
    and network performance services to small to medium sized businesses in our
    service regions;
    
--  Migrated a key segment of our wireless backbone in Southern California
    to licensed spectrum, thus allowing NextPhase to deliver carrier-grade
    services to the more than 135,000 businesses operating in Orange, Riverside
    and San Bernardino counties;
    
--  Won contract from Irvine Police Department in California to build and
    support its wireless broadband network on the new 4.9 GHZ spectrum
    specifically designated for public safety, emergency management and
    homeland security applications;
    
--  Initiated deployment of Picocells in our service area in Southern
    California, allowing us to further boost both network capacity and
    coverage;
    
--  Introduced high capacity wireless broadband connectivity at speeds of
    up to one Gigabyte per second (the equivalent of 647 T1 lines, or 1,000 DSL
    connections); and
    
--  Increased available bandwidth in the state of New Jersey, serviced by
    our newly acquired subsidiary, INS --  expanding it from 45 mbps to more
    than 150 mbps capacity and driving an approximate 36% increase in historic
    broadband usage from customers in that service region.
    

"With a solid operating platform in place that can now be leveraged to accelerate NextPhase's growth in the coming year, we have recently turned our attention to implementing strategies that will allow us to align our market value with our Company's intrinsic value. To that end, our management team has determined it is necessary to refine our share structure, beginning with a reverse split of our common stock. On October 2, 2007, our Board of Directors approved a 1:20 reverse split of our common shares, together with a corresponding reduction (from 200 million to ten million) in the number of authorized shares of our common stock. We expect the reverse split will take effect at the close of business on November 2, 2007, and that the post-split shares will begin trading under 'NXPW' upon market open on Monday, November 5, 2007. We are confident that this is an important first step in helping to attract quality new investors to NextPhase, who may otherwise be reluctant to give serious investment consideration to our Company.

"Looking ahead, there are a number of mission-critical corporate and operational milestones that NextPhase is currently focused on achieving in the coming year, to include:

--  establishing NextPhase executives as noted thought leaders in the
    wireless broadband industry, in general, and in the movement towards
    adoption of WiMax standards, in particular;
--  expanding our Board of Directors with the appointment of three, highly
    qualified, independent members;
--  pursuing the listing of our common stock on a national exchange;
--  completing the full conversion of our wireline networks in New Jersey,
    Georgia, Florida and Arizona to WiMax-ready wireless networks, thus driving
    gross margins on access fees and services from 35% to as high as 75-80%;
--  enhancing our regional sales and marketing efforts to promote
    increased revenues through cross-marketing and upselling of current U.S.
    base of 10,000 customers;
--  completing a minimum of ten additional acquisitions of regional ISPs
    or WISPs by December 31, 2008 (approximately 50 targets have been
    identified);
--  installing 25 new fixed wireless towers within the first six months of
    2008 in our current service regions;
--  expanding our proprietary national wireless footprint into four
    additional states (Southeast and Southwest U.S. regions) during 2008; and
--  maintaining profitability while growing revenues to more than $25
    million in FY09 (ending March 31, 2009).
    

"According to The Pelorus Group, revenues generated from mobile browsing and wireless Internet connectivity 'will register robust growth from just under $1.7 billion during 2005 to $23.6 billion by yearend 2010.' Moreover, Intel suggets that mobile WiMax subscribers will grow to more than 21.2 million by 2012 from 1.7 million suscribers this year. Clearly, the wireless broadband convergence occurring in this country represents a significant opportunity for those forward-thinking, enterprising companies capable of leveraging critical first-to-market advantages. NextPhase intends to be one of those companies.

"I believe that the two decades I spent as a senior executive within the duPont organization empowered me with the essential skills and knowledge necessary to build a true world class company dedicated to pursuing market leadership without compromise. In this regard, NextPhase is intent on winning the trust and ongoing support of the global investment community by providing the greatest possible transparency into our financial performance and operational activities, meaningful perspective on the decisions we make to grow our business, and insight into the challenges and opportunities we expect to encounter along the way.

"In closing, I'd like to formally welcome all new shareholders; thank our loyal shareholders who have stood by us through the past year during our critical development period; and invite all prospective investors to pay very close attention to NextPhase over the coming year. If you give us the opportunity to perform, we believe you will come to find that NextPhase is indeed a company on the move and one that is destined for greatness," concluded Ford.

About NextPhase Wireless, Inc.

With a mission to build a device-agnostic wireless broadband connectivity/content delivery platform serving all 48 contiguous U.S. states, NextPhase Wireless, Inc. is focused on delivering integrated Internet, voice, video and managed services to its fast growing customer and client base which currently numbers more than 10,000. Engaged in designing, deploying and operating its own WiMAX-ready wireless networks and providing advanced wireless technology solutions to both businesses and municipalities, the Company is currently providing wireless coverage in California and Nevada and Internet Service Provider (ISP) coverage in 19 states throughout the country. For more information, please visit www.npwireless.com, www.speedfactory.com and www.jersey.net.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact Information

  • FOR INVESTOR & MEDIA RELATIONS, PLEASE CONTACT:
    Elite Financial Communications Group, LLC
    Dodi Handy
    President and CEO
    or
    Daniel Conway
    Chief Strategist
    407-585-1080
    NXPW@efcg.net