Radiant Communications Corp.
TSX VENTURE : RCN

Radiant Communications Corp.

December 22, 2006 12:10 ET

Radiant Announces Non-Brokered Private Placement to Raise $1 Million

Additional funds to be used to increase working capital and support new product development

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 22, 2006) - Radiant Communications Corp. ("Radiant") (TSX VENTURE:RCN), Canada's leading supplier of Internet-based data communications and Internet services to the business market, is pleased to announce plans to raise up to $1 million through a non-brokered private placement of up to 1.1 million common shares to Working Opportunity Fund (EVCC) Ltd, ("WOF") and Pender Growth Fund (VCC) Inc., ("Pender") at an aggregate price of $0.90 per share. Prior to completion of the transaction WOF and Pender intend to sell collectively up to 1.1 million common shares of Radiant from their existing holdings through the public market. At the completion of all transactions it is anticipated that WOF and Pender will own the same number of Radiant shares as prior to the transactions.

The common shares will be issued under the offering on a private placement basis and will not be qualified by a prospectus. As a result, the common shares will be subject to the applicable statutory hold periods. The offering is subject to a number of conditions including the execution of formal documentation and receipt of the applicable regulatory approvals. The proceeds of the offering will be used for working capital and general corporate purposes.

GrowthWorks Capital Ltd., the manager of WOF is an affiliate of GrowthWorks General Partner Ltd., manager of Pacific Venture Fund Limited Partnership ("PVF"). WOF currently owns an aggregate of 3,141,526 common shares of Radiant, representing approximately 32% of the outstanding common shares of Radiant, and PVF currently owns an aggregate of 897,436 common shares of Radiant, representing approximately 9% of the outstanding common shares of Radiant. Pender currently owns an aggregate of 1,650,641 common shares of Radiant, representing approximately 17% of the outstanding common shares of Radiant. At the completion of all transactions related to this private placement it is anticipated that WOF, PVF and Pender will own the same number of Radiant shares as prior to the transactions, however the percentage holdings of WOF and PVF will be reduced to approximately 29% and 8% respectively and the percentage holding of Pender will be reduced to approximately 15%.

Radiant currently has 9,825,658 common shares issued and outstanding and subsequent to this series of transactions the Company anticipates it will have approximately 10,925,658 common shares issued and outstanding.

ABOUT RADIANT COMMUNICATIONS

Radiant Communications Corp. (www.radiant.net) provides a total, integrated solution for businesses requiring national IP data communications services including, broadband and managed network services, Internet access and web hosting.

The Company offers a complete range of coast-to-coast broadband services including DSL, T1, Fibre, and Cable. Radiant also provides specialized IP services for the Canadian retail industry, namely, RetailCONNECT™ IP network services and TurboSwitch IP payment gateway services. Radiant has offices in Toronto, Montreal, Calgary, Edmonton and Vancouver.

This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of Radiant, which involve risks and uncertainties. These risks and uncertainties may cause Radiant's actual results to differ materially from those contemplated by the forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures, the growth rate of the Internet and telecommunications concerns, constantly changing technology and market acceptance of the company's products and services. Investors are also directed to consider the other risks and uncertainties discussed in Radiant's required financial statements and filings. All other companies and products listed herein may be trademarks or registered trademarks of their respective holders.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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