March 23, 2009 18:20 ET

Cybersurf Corp. Provides Update on Proposed Asset Sale

CALGARY, ALBERTA--(Marketwire - March 23, 2009) - Cybersurf Corp. ("Cybersurf") (TSX VENTURE:CY), one of Canada's leading Internet technology and service companies, today provides an update on its proposed sale of assets pursuant to a letter of intent with another Canadian telecommunications company (the "LOI"), first announced by press release on February 27, 2009. Cybersurf continues to negotiate the definitive asset purchase agreement contemplated by the LOI with the purchaser, Distributel Communications Limited ("Distributel") or a corporation designated by Distributel. Cybersurf and all directors and officers of Cybersurf are at arm's length with Distributel.

The assets which Cybersurf has agreed to sell to Distributel include all of Cybersurf's assets relating to its internet access user bases including high speed, long distance and VoIP telephone services in Canada, the associated underlying agreements and other relevant assets (the "Purchased Assets"), including the shares of certain wholly-owned subsidiaries of Cybersurf. In addition, Distributel will assume certain liabilities of Cybersurf relating to its business (the "Assumed Liabilities"), including prepaid services to subscribers for cable, DSL, internet access, long-distance and VoIP services, liabilities relating to employees of Cybersurf assumed by Distributel, and liabilities and obligations of Cybersurf relating to the Purchased Assets accruing or to be performed on or after the effective time of the transaction. The purchase price payable by Distributel is $5,500,000, of which $4,800,000 will be paid in cash at the closing and $700,000 will be held in escrow to secure the completion of certain post-closing obligations.

In connection with the proposed sale of assets, Cybersurf engaged a financial advisor (the "Advisor"), which will be paid a success fee of $270,000, payable on closing of the transaction. The Advisor is also entitled to be paid its expenses in connection with the transaction up to $2,500.

Closing of the proposed sale of assets will be subject to, among other conditions, the approval of the TSX Venture Exchange and the approval of Cybersurf shareholders by special resolution at a duly called meeting of shareholders (the "Meeting"), the date of which will be announced after the transaction has received conditional approval from the applicable regulatory authorities. Further details of the terms of the proposed sale of assets will be described in the information circular in respect of the Meeting.

"Distributel is a pioneer in the competitive telecommunications market and is renowned for delivering great prices and excellent service to its customers. We believe Cybersurf's customers will be left in good hands for the future", said Paul Mercia, Chief Executive Officer of Cybersurf Corp.

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".

(i)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.

About Distributel

Distributel Communcations Limited is a privately held Canadian corporation in business since 1988. Together with it's Quebec-based affiliate Communication Telosysteme Inc., which operates as Distributel, it provides long distance, internet, teleconferencing and local telephone services to some 200,000 Canadians. The acquisition of Cybersurf's user base and related assets will augment Distributel's participation in the internet marketplace and expand its geographical presence to Western Canada. Distributel looks forward to growing its excellent customer service reputation within the Cybersurf user base.

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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