TeraGo Networks Inc.

TeraGo Networks Inc.

June 23, 2010 21:18 ET

TeraGo Networks Purchases Wireless Spectrum

TORONTO, ONTARIO--(Marketwire - June 23, 2010) - TeraGo Networks Inc. (TSX:TGO) (www.terago.ca), a leading network service provider to businesses in Canada, announced it has agreed to purchase licences for 24GHz spectrum covering six of the largest markets in Canada. TeraGo exercised its option to purchase these spectrum assets for a gross purchase price of $5 million (subject to certain prior payments) under an existing lease arrangement entered into in March 2007 with Mobilexchange Spectrum Inc. This spectrum is used by TeraGo for Ethernet-based broadband links for business, government and cellular backhaul.

"Spectrum is a core asset to our business, and is becoming an increasingly scarce resource," said Bryan Boyd, President and Chief Executive Officer, TeraGo Networks Inc. "The decision to secure this key spectrum asset will enable TeraGo to expand in Canada's six largest markets and increase the long term value of the company."

The purchased spectrum includes 240 MHz in each of Montreal, Ottawa and Toronto, as well as 80 MHz in each of Edmonton, Calgary and Vancouver. Following completion of this purchase, TeraGo will own 76 spectrum licences in the 24 GHz and 38 GHz bands. The completion of this transaction is subject to Industry Canada approval.

About TeraGo Networks

TeraGo Networks Inc. has been providing businesses in Canada with carrier-grade wireless broadband and data communications services since 2001. The national broadband service provider owns and manages its wireless IP network in 43 major markets across Canada, serving more than 4,800 customer locations. TeraGo Networks is a wholly owned subsidiary of TeraGo Inc. (TSX:TGO). More information about TeraGo is available at www.terago.ca.

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