MDU Communications International, Inc.
OTC Bulletin Board : MDTV

MDU Communications International, Inc.

October 29, 2009 10:36 ET

MDU Communications Accelerates Strategic Acquisitions; Executes Agreements in Its Northeast and Southeast Regions

TOTOWA, NEW JERSEY--(Marketwire - Oct. 29, 2009) - MDU Communications International, Inc. (OTCBB:MDTV), a leading end-to-end provider of digital satellite television programming, high-speed Internet and other premium communication and information services to the residential multi-family market, continues to execute on an aggressive acquisition strategy to supplement organic growth, with asset acquisitions in New Jersey, Florida and New York.

On September 14, 2009, the Company executed an agreement with Delrey Technologies, LLC to acquire certain of its assets including 871 units and 472 subscribers to its Internet and DIRECTV(R) services in New Jersey. Delrey Technologies, predominantly an Internet service provider owned and operated by Chris DeLosReyes, was one of the first multi-family Internet providers to provide live, self-provisioned high-speed Internet. With Delrey systems, residents have plug and play Internet capabilities with the connection immediately directing them to an Internet service webpage co-branded with their multi-family property. No equipment is needed, no professional installation or truck roll is required, residents sign-up online, pay their monthly bill online and report most service problems online. In conjunction with the acquisition, Mr. DeLosReyes has accepted employment with MDU Communications as Director of Broadband and IT Services and will be evaluating the Company's entire portfolio for application of such self-provisioned Internet, as well as point-to-point property delivery of bandwidth and development of a bandwidth pricing tier program.

On September 30, 2009, the Company executed an agreement with a subsidiary of DirecPath, LLC to acquire certain of its assets in Florida including 1,839 units and 2,103 subscribers to its private cable, DIRECTV and Internet services. Approximately 700 units with 890 subscribers closed on September 30, 2009, with the remaining properties closing as assignment documentation is obtained, presumably prior to the end of the Company's first fiscal quarter.

Further to the Company's press release of July 13, 2009, as of October 9, 2009, the Company has fully closed on all 31 properties representing 9,100 units acquired from Rocket Broadband Networks. To accommodate forecasted growth, the Company opened an additional Northeast Regional sales and support office in the Buffalo/Syracuse, New York area. The growth of the Company's Northeast Region is now under the direction of Joshua Katz who recently accepted employment with the Company as Senior Director of Sales and Marketing for the Company's ten-state Northeast Region. Mr. Katz came to MDU Communications from Roseland Property Company, a premier multi-family residential real estate developer in the Northeast, where he had been Vice President of Development and Technology. Mr. Katz' knowledge of and contacts within the multi-family industry will be advantageous to MDU Communications.

The Company is currently engaged in negotiations and/or due diligence with several other companies that it deems either a strategic fit with its current geographic markets or a good base upon which to build an additional primary market. MDU Communications' acquisition strategy has the support of both its financing and programming partners. The Company makes no representations that any of these additional negotiations will result in closed transactions.

"The timing is right for MDU Communications to embark on a bold subscriber growth plan and we are executing on that plan through a series of strategic acquisitions and through dual organic growth resulting from new business as well as increased penetration in current properties driven by the DIRECTV upgrade program," commented Sheldon Nelson, President and Chief Executive Officer of MDU Communications. "The time and effort we've devoted over the past few quarters will become evident in the months and quarters ahead as we anticipate significant subscriber growth within the multi-family market's 30 million resident subscription opportunity."

About MDU: MDU Communications International, Inc. (OTCBB:MDTV) is a leading provider of premium communication/information services, including digital satellite television and high-speed (broadband) Internet services, exclusively to the United States multi-dwelling unit (MDU) marketplace - estimated to include 26 million residences. Through its wholly owned subsidiary, MDU Communications (USA) Inc., MDU Communications delivers DIRECTV(R) digital satellite television services and high-speed (broadband) Internet systems and is committed to delivering the next generation of interactive communication services to MDU residents. For additional information, please see or contact Investor Relations.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements relating to subscriber growth of the Company. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements, including, but not limited to, efforts on behalf of the Company to close on the additional properties and subscribers, obtaining property consents, integrating acquired assets, fluctuations in operating results and operating plans, closing of certain other acquisitions, market forces, supplier negotiations and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's 10-K for year ended September 30, 2008 filed on December 23, 2008, and incorporated herein by reference.

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