Radiant Communications Corp.
TSX VENTURE : RCN

Radiant Communications Corp.

January 15, 2007 19:11 ET

Radiant Closes $990,000 Non-Brokered Private Placement

Additional funds to be used to increase working capital and support new product development

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 15, 2007) - Radiant Communications Corp. ("Radiant") (TSX VENTURE:RCN), Canada's leading supplier of Internet-based data communications and Internet services to the business market, is pleased to announce the close of the $990,000 non-brokered private placement as previously announced on December 22, 2006. Through this private placement 1.1 million common shares were issued at $0.90 a share to Working Opportunity Fund (EVCC) Ltd, ("WOF") and Pender Growth Fund (VCC) Inc., ("Pender"). WOF subscribed for 660,000 shares and Pender subscribed for 440,000 shares. On January 10, 2007, WOF and Pender sold 660,000 shares and 440,000 shares respectively on the open market. With the completion of this private placement Radiant currently has 10,925,658 common shares issued and outstanding. Subsequent to the acquisition of common shares through this private placement and the sale of common shares on the open market, the number of shares owned by WOF and Pender remains identical to their ownership position prior to these transactions.

"This financing is of tremendous benefit to Radiant and all of our shareholders," said David Buffett, President and CEO of Radiant Communications. "With the assistance of two of our valuable shareholders we have very cost effectively secured additional working capital to fund growth in 2007 while at the same time satisfying the demand of retail shareholders interested in investing in Radiant's success. We have a very exciting plan for 2007 that includes growing our profitable base business while increasing our growth opportunities by introducing new high value products such as digital voice and IT collaboration tools to new and existing customers."

GrowthWorks Capital Ltd., the manager of WOF is an affiliate of GrowthWorks General Partner Ltd., the general partner and manager of Pacific Venture Fund Limited Partnership ("PVF"). WOF now owns an aggregate of 3,141,526 common shares of Radiant, share purchase warrants to acquire up to a further 1,394,498 common shares of Radiant and options to purchase an additional 16,667 common shares, representing, assuming the full exercise of the warrants, approximately 41.67% of the issued and outstanding common shares of Radiant. PVF did not participate in the private placement and has maintained its holdings of 897,436 common shares of Radiant and share purchase warrants to acquire up to a further 587,607 common shares of Radiant, representing, assuming the full exercise of the warrants, approximately 13.59% of the issued and outstanding common shares of Radiant. WOF and PVF have acquired these securities for investment purposes only. Although it is not anticipated at this time, WOF and/or PVF may make further purchases of securities of Radiant for investment purposes only.

As a result of the completion of the private placement, Pender now owns an aggregate of 1,650,641 common shares of Radiant and share purchase warrants to acquire up to a further 1,056,802 common shares of Radiant, representing, assuming the full exercise of the warrants, approximately 24.78% of the issued and outstanding common shares of Radiant. Pender has acquired these securities for investment purposes only. Although it is not anticipated at this time, Pender may make further purchases of securities of Radiant for investment purposes only.

The common shares issued under this offering will not be qualified by a prospectus. As a result, the common shares will be subject to the applicable statutory hold periods. The offering is subject to the receipt of the applicable regulatory approvals. The proceeds of the offering will be used for working capital and general corporate purposes.

ABOUT RADIANT COMMUNICATIONS

Radiant Communications Corp. (www.radiant.net) provides a total, integrated solution for businesses requiring national IP data communications services including, broadband and managed network services, Internet access and web hosting.

The Company offers a complete range of coast-to-coast broadband services including DSL, T1, Fibre, and Cable. Radiant also provides specialized IP services for the Canadian retail industry, namely, RetailCONNECT™ IP network services and TurboSwitch IP payment gateway services. Radiant has offices in Toronto, Montreal, Calgary, Edmonton and Vancouver.

This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.

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

Contact Information