MDU Communications International, Inc.
OTC Bulletin Board : MDTV

MDU Communications International, Inc.

November 18, 2010 09:04 ET

MDU Communications Accelerates Transfer of Multi-Family ATTVS DIRECTV® Properties; 126 Properties with 36,766 Wired Units Now Closed

TOTOWA, NEW JERSEY--(Marketwire - Nov. 18, 2010) - MDU Communications International, Inc. (OTCBB:MDTV) and ATTVS, further to their December 2, 2009 asset purchase agreement, have accelerated the final transfers of multi-family properties from ATTVS to the Company. This week, the Company began the transition of 51 properties containing 13,880 wired units and 3,531 active subscribers. The transition is to be completed by December 31, 2010.

To date, 5,657 subscribers in 75 properties with 22,886 wired units have been transitioned to the Company from ATTVS. One final closing and transition of approximately 30 remaining properties containing about 8,700 wired units is planned prior to March 31, 2011. The Company is aggressively establishing its own relationship with these acquired properties, renewing and extending right-of-entry access agreements, providing marketing and penetration rate support, and evaluating these properties for upgrade. The Company believes that these multi-family properties represent significant future subscriber and revenue growth in fiscal 2011 and has already experienced increases in activation rates for DIRECTV services in the short period that the Company has assumed providing such services.

"The 150+ multi-family DIRECTV properties that we have acquired (or will acquire) in this transaction represent significant immediate growth and we firmly believe that the opportunity for future subscriber growth within these properties is superior," commented Mr. Sheldon Nelson, President and Chief Executive Officer. "The Company is seeking the best growth opportunities and acquiring, owning and operating these assets represents an excellent use of capital for multiple reasons, including, solidifying the Company's presence in the Texas market and surrounding area, prospective growth within the asset base itself, and the important fact that the subscriber revenues will be immediately accretive to our EBITDA results," Mr. Nelson added.

The Company intends to issue a follow up press release within the next week discussing preliminary fiscal 2010 results and other financial and growth initiatives.

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® 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 financial information, property upgrades, strategic partner relationships, acquisitions, subscriber sales, subscriber and revenue growth and implementation of new programs and developments 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, changes in financial condition, efforts on behalf of the Company to close on acquisitions, properties and subscribers, obtaining property consents, integrating acquired assets, bringing to fruition upgrade programs, fluctuations in operating results and operating plans, deployment of new subscribers and conversion of existing subscribers, 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, 2009 filed on December 29, 2009, and incorporated herein by reference.

Contact Information