March 17, 2010 09:01 ET

Uniserve Reaches Revised Agreement With Preferred Shareholders

NEW WESTMINSTER, BRITISH COLUMBIA--(Marketwire - March 17, 2010) - Uniserve Communications Corp. (TSX VENTURE:USS) announces that it has restructured the $4,285,000 owing to its Preferred Shareholders. Uniserve has received over 95% agreement from the Preferred Shareholders with the remainder expected later this week. Uniserve Communications ("the Company") has in excess of $700,000 in accrued dividends payable and the Restructuring Agreement sees the Preferred Shareholders forgiving the accumulated dividends in arrears and forgoing future dividends to June 30, 2010. The total amount of dividends to be forgiven and foregone is approximately $800,000. The 8% dividend on the preferred shares will recommence effective, July 1, 2010, with the dividends to be paid on a monthly basis. In addition, the Company has agreed to reduce the exercise price on the conversion rights of the Preferred Shareholders to $0.25 per share for the remainder of the term and to redeem 20% of the preferred shares outstanding for cash by December 31, 2010. In the event that the Company fails to make the monthly dividend payment or if there is any other material breach of the terms the Preferred Shares will become immediately retractable.

As part of the restructuring, the Company redeemed $300,000 of the Preferred Shares for a cash payment of $150,000 and the forgiveness of the accumulated dividends. The current balance of the Preferred Shares outstanding is $3,985,000 and will be further reduced to $3,188,000 by December 31, 2010 under the terms of the Restructuring Agreement. The Restructuring Agreement resolves the dividends in arrears issue and significantly improves the working capital position and the balance sheet of the Company.

About Uniserve Communications Corporation:
Uniserve Communications is an industry leader in the integration and delivery of voice and data services over multiple IP networks including Cable, ADSL, Fibre and Wireless Broadband. Uniserve delivers digital voice and data services directly or through wholesale partnerships to small and medium enterprises and retail consumers throughout Canada. Uniserve is a publicly traded company listed on the Canadian TSX.V exchange under the trading symbol "USS".

Additional corporate and financial information may be found at www.sedar.com.

On Behalf of the Board,

Michael Schmidt, President and CEO

To coordinate an interview with representatives of Uniserve Communications Corporation please contact the undersigned.

The statements contained in this news release that are not historical facts are forward looking statements. Such statements are based on management's estimates, assumptions and projections using available information. Uniserve cautions that actual financial results could differ materially from the current expectations due to a number of factors.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this News Release. This release has been prepared by management and no regulatory authority has approved or disapproved the information contained herein.

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