Urban Communications Inc.

Urban Communications Inc.

June 24, 2008 17:57 ET

Urban Communications Inc. Announces Non-Brokered Private Placement and Continued Customer Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 24, 2008) - Urban Communications Inc. (TSX VENTURE:UBN) is pleased to announce a non-brokered private placement of up to 16.67 million shares at a purchase price of $0.15 per share for aggregate gross proceeds to Urban of up to $2.5 million. Urban intends to use the proceeds to meet pent up demand for its broadband services, expand its sales operations and develop new service offerings. Certain directors and officers have agreed to sell shares in the market and to use the proceeds for the purpose of subscribing for shares in the private placement.

Urban's MDU residential subscriber base continues to grow and newly signed access agreements are located within easy reach of adjacent buildings in keeping with its cluster marketing strategy. Urban expects its Internet and VoIP service offerings to attain the same high penetration levels that it has consistently achieved with each previous installation. Urban's sales team continues to build momentum as it drives through high-density high-rise corridors.

Urban anticipates adding unique service offerings this year that will enhance its ability to achieve still higher penetration levels and increased average revenue per user. Demand continues to build for Urban's existing offerings and the company anticipates that additional service offerings will enable the company to meet its customer count and revenue targets for the coming year.

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. The Company's services include developing and operating leased fibre optic networks, providing a full suite of Internet, voice, video and broadband application products, 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. To third party carriers and service providers, Urban 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.

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

Contact Information

  • Urban Communications Inc.
    Chris Hilliard
    Senior Vice-president
    (604) 439-8538
    Email: chilliard@ubn.ca
    Urban Communications Inc.
    Nancy Massicotte
    Investor Relations
    (604) 507-3377
    Email: nancy@ubn.ca
    Website: www.ubn.ca