Urban Communications Inc.
TSX VENTURE : UBN

Urban Communications Inc.

July 17, 2007 13:55 ET

Urban Communications Inc. Announces 40 km. Extension of Network in Vancouver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Urban Communications Inc. (TSX VENTURE:UBN) announces that its wholly owned subsidiary, Urban Utility Corp., has executed agreements with the City of Vancouver to extend its underground fibre optic network by 40 km., which will double the size of the Company's network in Vancouver. This will increase Urban's fibre backbone to 165 km., located in high density corridors of metro Vancouver and Victoria.

Urban Utility Corp. has entered into a series of similar agreements with the City of Vancouver dating back to January, 2002. The current agreement modifies an existing duct licence and permits Urban to install and operate the additional 40 km. of fibre optic network in City owned telecommunications ducts for a 20 year term. The latest agreement will substantially increase access to residential multiple dwelling buildings (MDU's) and commercial buildings in Vancouver, which will enhance Urban's ability to carry out its business plan.

In an accompanying agreement, Urban has granted an extension to the City's indefeasible right to lease a certain number of fibre strands for a corresponding 20 year period for the purposes of connecting City sites within its own private high speed telecommunications network. Urban also maintains the City's backbone fibre network which connects sites including fire halls, recreation and community centres, libraries, and works yards. Under the latest extension Urban will reach additional City venues, including the new development at South East False Creek.

In City staff reports to Vancouver City Council referencing the agreements with Urban, it was noted the City was able to greatly expand its network to City worksites and save telecommunications costs by utilizing the fibre installed by Urban in City owned ducts.

It was also noted that the arrangement with Urban provided the City with additional cost savings and operational benefits due to the capacity and speed of fibre which allows for larger files to be sent and received, provides considerably better reliability with virtually no down time, greater redundancy, lower maintenance costs and lower server related maintenance and equipment costs associated with fibre optics, versus legacy (copper) infrastructure.

Finally the reports to City Council articulated that extending the licence and leasing fibre from Urban is the most cost effective way for the City to realize its telecommunications goals.

Leslie E. Maerov, Chief Executive Officer of Urban, stated: "We are pleased that both Urban and the City are able to realize further mutual benefits through continued expansion of the network. We look forward to a continued close relationship with the City and expect similar relationships will develop with other cities who wish to benefit from their own dedicated fibre network."

About Urban Communications Inc.

Urban Communications Inc., through its operating subsidiaries, is a full service telecommunications company providing a range of next generation IP application services to residential and commercial clients in British Columbia. The company's services include developing and operating leased fibre optic networks, engineering design and construction of advanced telecommunications systems to facilitate delivery of video, telephone and broadband Internet services, outside plant and maintenance of the networks plus product sales. Urban Communications is a telecommunications integration company providing end-to-end, turnkey services to meet the demands of its diverse, national telecommunications customers who require the full scope of fibre, cable and wireless technical services. Urban can deliver cost effective media rich solutions via state-of-the-art carrier grade infrastructure designed to reach both residential and business consumers.

Except for historical information contained herein, the statements in this news release contain or may contain forward-looking statements, such as statements regarding Urban Communications Inc.'s future growth and profitability, growth strategy and anticipated trends in the industries in which Urban Communications Inc. operates. These forward-looking statements are based on Urban Communications Inc.'s current expectations and are subject to a number of risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward-looking statements made by Urban Communications Inc. in this news release. These risks and uncertainties include, among other things, raising significant investment capital, locating and retaining senior technical and financial expertise, customer loyalty, demand for services, market competition and other risks detailed in documents filed with the TSX Venture Exchange or British Columbia Securities Commission. Urban Communications Inc. does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.

Shares issued: 31,701,340

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Urban Communications Inc.
    Leslie E. Maerov
    President and CEO
    (604) 439-8545
    Email: lemaerov@ubn.ca
    or
    Urban Communications Inc.
    Nancy Massicotte
    Investor Relations
    (604) 507-3377
    Email: nancy@ubn.ca
    Website: www.ubn.ca