SOURCE: Eagle Broadband

February 08, 2007 17:00 ET

Eagle Broadband Secures $5 Million Equity Line of Credit and $1 Million Debt Financing

LEAGUE CITY, TX -- (MARKET WIRE) -- February 8, 2007 -- Officials with Eagle Broadband, Inc. (AMEX: EAG), a national provider of broadband, Internet Protocol (IP) and digital communications technology and services, today announced the company has successfully closed a $1.3 million promissory note transaction with Dutchess Private Equities Fund, Ltd., for a purchase price of $1 million. In addition, Eagle recently secured a $5 million equity line of credit from Brittany Capital Management Limited.

Dave Micek, chief executive officer of Eagle Broadband, commented, "We are exceptionally pleased to have secured additional financing from Dutchess. In the last year, they have provided Eagle with financing through a convertible note, a $5 million equity line of credit and a $5.5 million promissory note. With our super headend complete and running in Miami, this additional investment and confidence Dutchess has placed in us will help us implement our IPTV strategy and provide the necessary funding for production of set-top boxes and SatMAX® units. As with the promissory note last year, this note is not convertible, minimizing the impact on our shareholders."

Under terms of the agreement with Brittany Capital, Eagle will have a right to periodically put common shares to Brittany Capital and receive cash at a seven percent (7%) discount to the market price calculated over a five-trading-day period. While the agreement commits Brittany Capital to purchase up to $5 million over the three-year term, the maximum aggregate number of common shares issuable to Brittany Capital will not exceed 4,200,000, unless the Company seeks and obtains shareholder approval in accordance with rules and requirements of the American Stock Exchange.

For more information on Eagle Broadband, visit

About Eagle Broadband, Inc.

Eagle Broadband is a technology company that develops and delivers products and services in three core business segments:

--  IPTV -- Eagle Broadband's IPTVComplete™ provides direct access to more
    than 250 channels of high-demand programming from popular entertainment
    providers, often using Eagle's high-definition, set-top boxes.
--  SatMAX® -- Eagle Broadband's SatMAX provides indoor/outdoor
    communications utilizing the global Iridium-based (
    satellite communications system.  It offers both fixed and mobile
    solutions, including the emergency first responder SatMAX Alpha "SatMAX-in-
    a-suitcase" technology.
--  IT Services -- Eagle Broadband's IT Services Group is a full-service
    integrator offering a complete range of network technology products
    including VoIP, remote network management, network implementation services
    and IT project management services.


Forward-looking statements in this release regarding Eagle Broadband, Inc., are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, the company's ability to continue as a going concern, the company's liquidity constraints and ability to obtain financing and working capital on favorable terms, the continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

Contact Information

  • Eagle Contact:
    Jackie Hutto
    Griffin Integrated Marketing
    (281) 335-0200