Urban Communications Inc.
TSX VENTURE : UBN

Urban Communications Inc.

November 14, 2006 16:11 ET

Urban Communications Inc. Announces Engagement of Hycroft Financial Partners

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Urban Communications Inc. (TSX VENTURE:UBN) is pleased to announce that it has entered into an agreement with Hycroft Financial Partners, a corporate finance firm with operations in the Pacific Northwest, on the East Coast and Asia, to provide corporate finance advice and other services.

Under the 12 month agreement Hycroft will work as the Company's corporate finance partner and will perform a detailed analysis of the current financial structure of the Company, conduct a systems analysis to provide an improved reporting platform, and conduct a review of the business plan objectives. In concert with these activities, Hycroft will provide recommendations to management for recasting the Company's business plan and financial projections and provide expertise and assistance from within its organization in support of those initiatives. In addition to the recently announced convertible debenture for $ 1,035,000, additional financing activities will be undertaken to fund the Company's capital expansion and commercial marketing program.

Leslie E. Maerov, Urban's Chief Executive Officer, says: "The investment climate for telecommunications ventures has finally improved, though the business case fundamentals have been present for some time. That we have been able to partner with an established and well-respected firm such as Hycroft, who will provide expertise in a number of areas, is testament to the opportunity that we are positioned to exploit."

Hycroft's Managing Partner, Peter Almerling states: "Hycroft believes that Urban is well positioned to profit from its planned 'Triple Play' service offering (voice, data/internet, video). Urban's 125 kilometres of dedicated fibre optic network in the high-density, urban corridors is a very valuable asset now that the telecom sector has consolidated and is emerging from many challenging years. Multiple expansion is being driven by improving pricing conditions, stabilizing operating trends, aggressive cost cutting measures, a good regulatory environment and new market opportunities. We believe that for a company to be successful going forward, it should own its own 'backbone' or network - a significant competitive and technological advantage."

The Company plans to implement a suite of next generation IP application services such as interactive broadband video, voice-over-IP and IPTV entertainment services, under the Urban Networks brand. Urban Networks' operational advantages over traditional service providers sharing infrastructure owned by incumbent telephone and cable companies are its lower cost of delivery plus delivery of synchronous bandwidth speeds for both uploads and downloads. High bandwidth applications such as interactive video, video-on-demand content and new gaming applications are bandwidth intense and Urban Networks' broadband service bundles will be deployed in unrestricted high speed increments 5MB/5MB (both upload and download), 10MB/10MB, 40MB/40MB and higher speeds priced "a la carte".

About Hycroft Financial Partners

Hycroft Financial Partners is a Seattle-based finance firm that partners and invests in a wide variety of sectors and situations. Whether through debt, equity or combinations of both, its own capital and its network of private and institutional capital, Hycroft provides the tools for corporations to meet their objectives of maximizing their growth. Hycroft helps corporations reduce their cost of capital by employing its unique "Corporate Finance Plan", a plan to obtain and manage capital. Hycroft also employs proprietary diagnostic financial analysis tools that assist companies in making the best possible financial decisions for their future.

About Urban Communications Inc.

Urban Communications Inc., through its operating subsidiaries, specializes in the construction, operation and management of fibre optic telecommunications networks and the delivery of broadband subscriber services. Urban is a CRTC licensed non-dominant carrier with 125 km. of metropolitan area fibre strategically located in high density corridors of Vancouver and Victoria, British Columbia. Urban is planning to offer high speed metro Ethernet products and applications for commercial customers and residential subscribers over its optical infrastructure. By virtue of this fully operational, privately owned, state-of-the-art fibre optic backbone network, Urban is uniquely positioned to deliver innovative "Urban" branded high speed broadband services, including interactive IP content applications, web based entertainment and gaming portals, to aggressively compete with existing Internet service providers, incumbent telecommunications carriers and cable companies.

On behalf of the Board of Directors

Leslie E. Maerov, President and CEO

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: 20,253,191

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

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