TeraGo Networks to Acquire MetroBridge Customer and Network Assets

TORONTO, ONTARIO--(Marketwire - April 27, 2011) - TeraGo Inc. (TSX:TGO)(www.terago.ca) today announced that its wholly-owned subsidiary, TeraGo Networks Inc., has entered into a definitive asset purchase agreement with MetroBridge Networks International Inc. (TSX VENTURE:MEB).

Under the terms of the agreement, TeraGo Networks will acquire substantially all of MetroBridge's customers, related network infrastructure, real estate leases, and other assets. MetroBridge's broadband fixed wireless network, which covers the Lower Mainland of British Columbia and Vancouver, will add approximately 600 business customer locations to TeraGo's network. The deal is expected to close on May 31, 2011, subject to confirmatory diligence to be completed to TeraGo's satisfaction, financing and other customary closing conditions, including approval of MetroBridge's shareholders.

The purchase price is expected to be approximately $6 million with 70% payable on the closing date and the remaining 30% payable following a final recurring revenue calculation to be completed for the 180 day period following the closing date. The total price will be adjusted for any liabilities assumed by TeraGo and any change in the monthly recurring revenue between the date of signing the purchase agreement and the 180^th day following the closing date. The purchase agreement also provides a $750,000 break fee payable to TeraGo under certain circumstances.

Acquisition highlights

• The acquisition further accelerates TeraGo's growth plan as it is acquiring network in Vancouver and BC's lower mainland, and a customer base of approximately 600 customer locations.
• MetroBridge is EBITDA positive and the transaction will add to TeraGo's recent record EBITDA.
• MetroBridge's average monthly revenue per customer location, or ARPU, of $603 is consistent with TeraGo's 2010 ARPU of $610.
• Entering into an asset purchase agreement allows TeraGo to acquire the customer base and essential assets without the potential liabilities associated with a share purchase.
• TeraGo has the right to retain MetroBridge's employees.

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 5,300 customer locations in 43 major markets across Canada including Toronto, Montreal, Ottawa, 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.