MDU Communications International, Inc.
OTC Bulletin Board : MDTV

MDU Communications International, Inc.

July 19, 2005 14:40 ET

MDU Communications Reports Preliminary Third Fiscal Quarter Revenue, Subscriber, Work in Progress and Backlog Results

TOTOWA, NEW JERSEY--(CCNMatthews - July 19, 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, today reports its third fiscal quarter results for the period ended June 30, 2005.

The Company reports a 16% increase in revenue for the quarter ended June 30, 2005 over the previous fiscal quarter. The Company's approximate revenue for the quarter was $2,415,000, as compared to revenue of $2,075,552 in the previous quarter ended March 31, 2005. Approximate revenue for the nine-month period ending June 30, 2005 was $6,390,000, an increase of 113% when compared to revenue for the same nine-month period ending June 30, 2004 of $3,005,565.

During the quarter ended June 30, 2005, the Company added approximately 3,820 billable subscribers to its services, however, this subscriber number was reduced by the sale of 447 non-core subscribers previously announced in an 8-K filed on June 13, 2005, for an approximate net number of 3,380 subscriber adds for the quarter. As of June 30, 2005, the Company had approximately 33,530 subscribers to its services as compared to 30,152 subscribers as of March 31, 2005. In addition to the "billable" subscribers, the Company reports approximately 11,600 subscribers "under contract" as of June 30, 2005. The under contract subscribers are an important component of the Company's subscriber base evaluation in that they represent the number of subscribers in the Company's work-in-progress ("WIP") properties simply awaiting completion of a DIRECTV/Internet system, maturity of a phase-in schedule or launch of a marketing campaign. A preliminary breakdown of these "under contract" subscribers (already discounted for appropriate property type and penetration rate) reflects that 4,991 are from bulk properties, 1,446 are from exclusive properties and 5,106 are from choice properties. The Company will provide further detail when it reports its actual third fiscal quarter results.

Although the Company had expected to add approximately 5,000 "billable" subscribers during the quarter, several properties and one sizable project of 1,800 subscribers remained in WIP "under contract" instead of moving to "billable" due to property owners requesting longer phase-in schedules in return for executing more financially beneficial ten year bulk access agreements instead of the customary seven year access agreement.

The Company's total units in WIP stayed constant at approximately 34,000 as of June 30, 2005, compared to 34,261 units in WIP as of March 31, 2005; however, compared to the 13,387 units in WIP one year ago on June 30, 2004, this is a 153% increase. The Company's backlog of properties during the quarter also stayed constant from last quarter at approximately 150,000 units; however, this is a 75% increase over the 86,000 units in backlog as of June 30, 2004. The Company will provide a more in depth analysis of its WIP and backlog, including a break down by property type, existing or new construction and the affect of phase-in scheduling, when it reports its actual third fiscal quarter results.

The Company expects to file its quarterly report on Form 10-QSB for the quarter ended June 30, 2005 with the Securities and Exchange Commission on or before August 14, 2005.

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 and revenue 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, bring to fruition strategic alliances, fluctuations in operating results and operating plans, obtaining of new subscribers, 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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