SOURCE: Superwire, Inc.

July 13, 2005 10:53 ET

Superwire, Inc. to Acquire FTTH Communications, LLC.

NEWPORT BEACH, CA -- (MARKET WIRE) -- July 13, 2005 -- Superwire, Inc. (OTC: SUPW), an integrated broadband services company delivering IP based telephone, digital television and high-speed Internet services (Triple Play) to multi-tenant properties, gated communities, residential neighborhoods and consumer markets through partnerships with residential property developers, home owners associations and municipal governments, announced today that it has entered into a Letter of Intent to acquire FTTH Communications, Inc.

FTTH Communications, Inc., located in Roseville, Minnesota, provides voice, high-speed Internet and video services to residential communities in Rosemount, Albertville and Hugo Minnesota. Through its state-of-the-art Switched Digital Headend, FTTH also provides wholesale video and managed video services to telephone companies, cable companies and municipalities.

Commenting on the sale, John Schultz, FTTH's General Manager, stated, "FTTH is excited to join forces with Superwire's management team. This acquisition brings together two companies with highly compatible cultures and complementary technical and operational capabilities. The combination will enable us to continue our rollout of Triple Play services to the greater Minneapolis metropolitan area as well as leverage the expertise we have as the first company in the US to offer a complete IP based voice, data and television solution to projects under way at Superwire."

Tighe A. Merelli, CEO of Superwire, stated, "This acquisition is a perfect fit for Superwire. We are acquiring an existing Triple Play customer base of over 600 subscribers, growing at a rate of over 20 subscribers per month, complete with state of the art IP-based infrastructure and an industry renowned management team." Mr. Merelli added, "We are also acquiring an exclusive partnership with Contractors Property Developers Corporation (CPDC), one of Minnesota's top residential real estate developers, to provide services to their properties throughout Minnesota, adding a potential of 5000-6000 subscribers. Revenue projected for 2005 is approximately $1 million."

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such forward-looking statements involve risk and uncertainties, which may cause the actual results or objects to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among other things, the Company's financial performance, changes in the competitive environment, adverse changes in the economy, ability to maintain long-term relationships with customers and financing requirements.

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