February 27, 2009 18:26 ET

Cybersurf Corp. Enters Letter of Intent to Sell Assets

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2009) - Cybersurf Corp. ("Cybersurf") (TSX VENTURE:CY), one of Canada's leading Internet technology and service companies, today reports that it has signed a letter of intent, with another Canadian telecommunications company to sell it's assets relating to Cybersurf's Internet access user bases including it's High Speed, long distance and VoIP telephone services in Canada, associated underlying agreements and other relevant assets for $5.5M (Cdn.). Following closing of this transaction, Cybersurf will be required to change its trade names and the corporate and trade names of any subsidiary not acquired by the offeror. Cybersurf will seek necessary shareholder approvals and expects that the transaction will close by April 15, 2009.

Paul Mercia, President and CEO of Cybersurf stated; "The Board of Directors has recommended the sale of the user base for less than what it actually believes its value to be. This is primarily due to the stress the company has had to endure as a result of the prolonged and on-going billing dispute with Bell Canada. Cybersurf Management has also lost some confidence in the Canadian Radio-Television and Telecommunication Commission ("CRTC"). Unfortunately, the Commission process has taken far longer than it should have. For instance, it should not have taken nearly two months for a decision to be forthcoming for Cybersurf's request for interim relief especially when Bell had not even defined its claim. There's no telling at this rate how much longer it will go on, and the Company has mounting legal costs and demands on its resources. Because of Bell's overbilling and claim for overstated receivables, Cybersurf had accrued millions of dollars in payables and liabilities and was not able to secure financing when it was available; and now even with the Company's positive financial outlook the current economic climate and adverse market conditions have made it impossible for Cybersurf to raise financing on equitable terms. Although the Company has reported profits and has been cash flow positive the Company's Board of Directors believes the potential for return in the foreseeable future will be marginal. The Board of Directors will consider other opportunities and will propose a plan for shareholders at the upcoming annual and special meeting."

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.

There is a significant risk to completing any transaction of this nature or completing on the terms set out in this release. Shareholders are cautioned and advised to seek the appropriate investment advice relevant to their circumstances and level of sophistication.

Distributed by Filing Services Canada and retransmitted by Marketwire.

Forward Looking Statements

This news release may contain certain forward-looking statements. All statements, other than statements of historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Cybersurf does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.

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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