Urban Communications Inc.

Urban Communications Inc.

October 10, 2007 17:28 ET

Urban Communications Inc. Announces Acquisition of Private Cable and Internet Provider

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 10, 2007) - Urban Communications Inc. (TSX VENTURE:UBN) is pleased to announce that, subject to regulatory approval, the Company, through its subsidiary, Urban Networks Inc., has entered into an agreement to purchase the subscriber base of Cablenet Communication Services ("Cablenet"), a cable television and Internet service provider in Burnaby, BC.

Cablenet presently provides service to 300 subscribers in seven high rise rental apartment buildings containing a total of 750 residential units and 13 businesses. This gives Urban the opportunity to acquire up to a further 450 subscribers and to provide additional services to the existing and new subscribers such as VoIP, and eventually video on demand and full IPTV.

CableNet operates under an exemption from the broadcast distribution licensing requirements prescribed by the CRTC, but the acquisition will give Urban recognition with content providers in advance of it providing IPTV services over its state-of-the-art fibre optic network when it becomes licensed to do so. CableNet also has its own customer support and technical support services on site, which aligns with Urban's strategy of providing superior customer service to all business and residential users wanting the best in connectivity, content and communication.

Urban has agreed to issue common stock in payment for the agreed value of the subscriber base on the Closing Date, and a discounted amount for subscribers generated by Urban over the next 12 months, at the 10 day average closing price of the stock on the TSX Venture Exchange as of the Closing Date. In addition, Urban has agreed to pay an ongoing royalty on average revenue per user from all subscribers.

About Urban Communications Inc.

Urban Communications Inc., through its operating subsidiaries, is a full service telecommunications company providing a range of next generation IP application services to residential and commercial clients in British Columbia. The Company's services include developing and operating leased fibre optic networks, engineering design and construction of advanced telecommunications systems to facilitate delivery of video, telephone and broadband Internet services, outside plant and maintenance of the networks plus product sales. Urban Communications is a telecommunications integration company providing end-to-end, turnkey services to meet the demands of its diverse, national telecommunications customers who require the full scope of fibre, cable and wireless technical services. Urban Communications can deliver cost effective media rich solutions via state-of-the-art carrier grade infrastructure designed to reach both residential and business consumers.

Except for historical information contained herein, the statements in this news release contain or may contain forward-looking statements, such as statements regarding Urban Communications Inc.'s future growth and profitability, growth strategy and anticipated trends in the industries in which Urban Communications Inc. operates. These forward-looking statements are based on Urban Communications Inc.'s current expectations and are subject to a number of risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward-looking statements made by Urban Communications Inc. in this news release. These risks and uncertainties include, among other things, raising significant investment capital, locating and retaining senior technical and financial expertise, customer loyalty, demand for services, market competition and other risks detailed in documents filed with the TSX Venture Exchange or British Columbia Securities Commission. Urban Communications Inc. does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.

Shares issued: 33,630,490

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Urban Communications Inc.
    Leslie E. Maerov
    President and CEO
    (604) 439-8545
    Email: lemaerov@ubn.ca
    Urban Communications Inc.
    Nancy Massicotte
    Investor Relations
    (604) 507-3377
    Email: nancy@ubn.ca
    Website: www.ubn.ca