Urban Communications Inc.

Urban Communications Inc.

September 05, 2007 07:00 ET

Urban Communications Inc. Announces Joint Venture to Stream Content

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 5, 2007) - Urban Communications Inc. (TSX VENTURE:UBN) announces that, subject to regulatory approval, the Company, through its subsidiary, Urban Networks Inc., has entered into a joint venture agreement with the principals of 777Online, an online streaming media portal. The joint venture is the first step in creating Urban's web-based video media portal to carry local and global streaming audio and video content.

777Online's proprietary software program "mediaManager", provides a platform for capturing and publishing live audio and video events as web content for online viewing. The software interface will enable Urban to provide a variety of free and pay-per-view or subscription based web events as part of its residential service plan.

The president of 777Online, David McIlroy, will manage the joint venture company and will be responsible for the commercialization of the mediaManager software and development of unique content to be transmitted over Urban's network. Mr. McIlroy is widely recognized as a pioneer of the streaming media industry. He developed live audio play by play webcasts for sporting events by simplifying the technical processes that delivered high quality programming, and in 2001 he launched live video webcasts of international events from remote locations. As Director of Media Technology for a well known Burnaby-based service provider, he was pivotally responsible for building the company from a startup in 1998 to a well respected national service provider within two years.

As the recognized leader in webcasts for sports leagues in Canada and the U.S., Mr. McIlroy established the first viable pay-per-view offerings thereby transforming the industry by allowing his clients to not only offset the expense of a webcast but to generate positive revenue from subscriptions.

Urban's independent fibre optic network spans densely populated corridors of metro Vancouver and Victoria and is ideal for broadcasting high definition entertainment such as sports events, games and new streaming media content.

Under the joint venture agreement, Urban will fund the business plan for approximately one year to commercialize the service and continue the development of software to increase its functionality to meet growing consumer demand. Urban will then have the option to purchase the interest of Mr. McIlroy in the joint venture for $338,000 and will provide a royalty on future revenue. Urban will issue 100,000 common shares as a non-refundable deposit at the 10 day trading average of its shares, that value to be credited to the purchase price if the option is exercised.

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 customers in British Columbia. Urban can deliver cost effective media rich solutions via state-of-the-art carrier grade infrastructure designed to reach both residential and business consumers. The company's services include developing and operating 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 and 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.

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: 31,944,931

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
    Urban Communications Inc.
    Nancy Massicotte
    Investor Relations
    (604) 507-3377
    Email: nancy@ubn.ca
    Website: www.ubn.ca