MDU Communications International, Inc.
OTC Bulletin Board : MDTV

MDU Communications International, Inc.

September 29, 2005 11:47 ET

MDU Communications Deploys Next Generation Multi-Family Property Network for Successful Service Conversion from Private Cable to Digital Bulk DIRECTV

TOTOWA, NEW JERSEY--(CCNMatthews - Sept. 29, 2005) - MDU Communications International, Inc. (OTCBB:MDTV), a leading end-to-end provider of DIRECTV® digital satellite television programming, high-speed Internet and other premium communication and information services to the residential multi-dwelling unit ("MDU") market, has increased its effort to convert many of its bulk private cable properties to either bulk DIRECTV Total Choice® or the specially designed for the MDU market DIRECTV Bulk/Choice Advantage (BCA) program. DIRECTV is lending its full support to the conversion effort.

One recent conversion indicative of the Company's effort is Marina City/Towers in the downtown loop of Chicago, one of the most recognizable residential high-rise developments in the world. Managed by Chicago-based Draper & Kramer, Marina City/Towers, an 880 unit luxury condominium, was previously serviced by an analog private cable system that was susceptible to interference and static due to its close proximity to many Chicago skyscrapers covered with various antennae. MDU Communications upgraded the property wiring system to a two-way fiber optic distribution system to accommodate its bundle of bulk DIRECTV services and exclusively provided MDU broadband Internet services. The fiber optic system is capable of delivering additional broadband services such as VoIP. Programming is via a new three-satellite system, which provides the full complement of DIRECTV programming services including HDTV and DVR services. The billing for all units is done "in bulk" to the property by MDU Communications and each individual unit can decide if they want to upgrade to other DIRECTV digital tiers and services.

The benefit to MDU Communications is not only a more satisfied customer base and reduced long-term maintenance costs, but also an increase in DIRECTV activation fees and residuals resulting in an increase in the average revenue per subscriber. The Company's recent average revenue per bulk private cable subscriber is approximately $16.00, compared to $35.00, which is the average revenue per bulk DIRECTV subscriber. An additional benefit to MDU Communications is that approaching a property for such a conversion is also an opportune time to negotiate a renewal or extension of the right of entry agreement.

"Marina City/Towers was the first true residential high-rise building in Chicago, and in fact, for years, the broadcast antenna for ABC television was on the roof of one of the towers. Also, we once housed the television studios of local channel WFLD. This 'television centric' image had to be enhanced for the new market of high-end residential owners focused now on the Chicago River as Trump Tower Chicago emerges as our new neighbor," commented David Gantt, property manager, of Draper & Kramer. "MDU Communications expressed not only a willingness but a profound determination to meet the unique engineering challenges presented by our twin towers. The new state-of-the-art digital television system combined with MDU's high-speed Internet services preserves the property's unique status and MDU Communications is in good company with the new Museum of Broadcast Industry moving into the complex," said Gantt.

"With the quickly changing state of technology and entertainment, most residents of premium MDU properties are becoming increasingly dissatisfied with the limitations of private cable services," commented Sheldon Nelson, Chief Executive Officer of MDU Communications. "In such properties a bundle of broadband and DIRECTV video services provided on a bulk or exclusive basis is an ideal long term solution in meeting the demands of existing and new residents," Nelson added. "Over the next twelve months we hope to convert a large number of our private cable subscribers to digital bulk DIRECTV subscribers with a focus on bundling our broadband Internet service and potentially a VoIP service during this conversion process."

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 www.mduc.com 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 finalize and deploy marketing programs and new technology, fluctuations in operating results and operating plans, obtaining of new subscribers to new products and programs, achieving expected subscriber penetration rates, 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-KSB for year ended September 30, 2004, filed on or about December 29, 2004.

The Company's filings, including current financial reports, can be accessed through the EDGAR database at www.sec.gov.

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