TeraGo Networks Inc.
TSX : TGO

TeraGo Networks Inc.
Business Development Bank of Canada (BDC)

Business Development Bank of Canada (BDC)

October 13, 2010 07:00 ET

TeraGo Networks Increases Size of Senior Credit Facility

TORONTO, ONTARIO--(Marketwire - Oct. 13, 2010) - TeraGo Networks Inc. (TSX:TGO) (www.terago.ca), a leading network service provider to businesses in Canada, today announced that it has completed an agreement to increase the size of its senior term credit facility with the Business Development Bank of Canada (BDC) from $7.5million to $10million. The new credit facility is a five-year term facility with principal payments commencing in the fourth quarter of 2011. At present $5.5million has been drawn against this facility, primarily to fund the recent purchase of radio frequency spectrum in Canada's six largest markets. As a result the Company can still draw an additional $4.5million against this facility in addition to its short term investments to fund future growth.

About TeraGo Networks

TeraGo Networks Inc. provides small and medium sized businesses with carrier-grade wireless broadband, data and voice communications services. The national network service provider owns and manages its wireless IP network servicing more than 4,800 customer locations in 43 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC) and is a wholly owned subsidiary of TeraGo Inc. (TSX:TGO). More information about TeraGo is available at www.terago.ca.

About BDC

BDC is Canada's business development bank. From 100 business centres across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. www.bdc.ca.

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