Urban Communications Inc.

Urban Communications Inc.

March 22, 2007 12:06 ET

Urban Communications Inc. Announces Strategic Advisory Board

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2007) - Urban Communications Inc. (TSX VENTURE:UBN) is pleased to announce the formation of an advisory board comprised of industry leaders to assist the company in reaching its objectives as set out in its February 2, 2007, news release. Urban's advisory members bring considerable expertise from their fields of real estate, accounting and financial compliance, and financial and capital markets and will provide the company with strategic business development advice and introductions within the development and financial communities. The advisory board is subsidiary and supportive in nature and not intended to derogate from the responsibility of the board of directors to manage the business and affairs of the company.

Leslie E. Maerov, Urban's CEO stated, "Urban Communications is indeed fortunate to have attracted such prominent business personalities to assist with our growth plans. The addition of this capable and well connected advisory board is a very important building block and we look forward to their guidance as we move to execute our business plan."

Advisory Board Members

Real Estate Development Category

LORNE MILNE (Advisory Board Chairman) - Mr. Milne is a respected 30-year veteran real estate lawyer and developer residing in Vancouver who has completed numerous large scale residential and office projects. Mr. Milne has a depth of understanding and contact base and will assist Urban in reaching developers and property managers, which is integral to Urban's success. Mr. Milne stated, "Cable and telephone providers simply cannot compete with Urban on a level playing field in Vancouver or Victoria as a result of its extensive fibre network and management team, not on price and not on bandwidth. Urban is exclusively positioned to meet the growing needs of the residential and business communities that will be serviced by its network over the immediate and long term. After initially learning of the opportunity and investing in the Company, I made the decision to fully get behind Urban, and look forward to the role of Chairman and assisting wherever possible."

PAUL CLOUGH - Among Mr. Clough's accomplishments, and one of particular interest to Urban, was his role as CEO and Chairman of Okanagan Skeena Group ("OSG"), a public company which owned several cable companies and radio stations in British Columbia. He engineered a rapid growth plan for OSG which resulted in OSG being acquired at a considerable premium by Shaw Cable in 1999. Previously Mr. Clough founded Imperial Parking in 1968, becoming Chairman and Chief Executive Officer and developing it into one of the most successful North American parking companies. After his retirement as CEO, Mr. Clough has maintained the role as Chairman (Non-Executive) of Imperial Parking Canada Corporation and CEO and Chairman of Robbins Parking Services. Mr. Clough is also the managing partner of the world famous Queen Charlotte Fishing Lodge where he acts as Chairman and President. Prominent in the real estate development industry, Mr. Clough is currently involved in a number of large-scale development projects, which Urban will have the opportunity to service. Mr. Clough stated, "I gained a solid understanding of the cable industry and the importance of content during my tenure with OSG and believe Urban has a terrific asset and opportunity to build value. I made the decision to lend my experience and introduce my contacts within the real estate development and financial sectors to assist the company with its growth plan."

Audit Committee & Accounting Category:

RICK DAVIS - Mr. Frederick (Rick) Davis is Senior Vice-President and Chief Financial Officer of CHC Helicopter Corporation, the world's largest provider of helicopter services to the global offshore oil and gas industry. With aircraft operating in more than 30 countries worldwide and $1 billion in revenue, CHC is listed on both the New York and Toronto stock exchanges. Mr. Davis brings a broad range of business experience and finance expertise that he has developed during CHC's rapid growth to $1 billion dollars in recent years, which will be very valuable to Urban as it expands rapidly. He will also bring his governance and compliance knowledge to assist Urban's board and management, and will work closely with Mr. Almerling to help Urban grow. Mr. Davis stated, "I hope to use my experience, understanding of the global business environment, history of developing business opportunities in different industries, and contacts with national business leaders to assist Urban in its endeavours, and through what is expected to be a period of rapid growth over the next three to five years."

PETER ALMERLING - Mr. Almerling is Managing Partner of Hycroft Financial Partners, a Seattle, Washington, based corporate finance firm with offices in Canada and Asia. Hycroft has invested its own capital in Urban and continues to support Urban's financial requirements to ensure that Urban can continues to meet its growth objectives. Mr. Almerling will utilize his many years of corporate finance experience and will work closely with Rick Davis to assist Urban with its accounting and finance activities, and to enable Urban to reach its targets. Mr. Almerling stated in previously released news 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. I believe that for a company to be successful going forward, it should own its own "backbone" or network - a significant competitive and technological advantage."

Capital Markets Category:

ROBERT THAST - Bob Thast brings many years of financial and public market experience to the Advisory Board. He has been involved as both a senior executive and a director of a number of publicly traded companies, including National Telcom Solutions, Caldera Environmental and most recently Cap-Link Ventures. Mr. Thast joined Urban in mid 2006 and his extensive personal network and hands-on approach has and will continue to be a great asset to Urban. Mr. Thast's pervasive knowledge of the capital markets will help Urban develop the strategy to ensure that its corporate achievements are well understood by the capital market place.

CHRIS HILLIARD - Mr. Hilliard joins Urban's Advisory Board following years of success as both a Vice-President at Acuity Funds and as an Associate Director, Vice President and Branch Manager at Scotia Capital. Acuity Funds manages more than $5 billion in assets and Scotia Capital is one of Canada's leading investment banks and a wholly owned subsidiary of the Scotia Bank. In his previous positions, Mr. Hilliard developed a highly successful portfolio management approach and a thorough understanding of the intricacies of both corporate finance and securities development. Mr. Hilliard stated, "With the resurgence of market interest and so few Canadian players in this sector, the opportunity to participate in such a unique early stage company was compelling. The level of management commitment and expertise reinforced my belief in Urban's potential."

Recent Developments:

The Company's wholly owned operating subsidiary, Urban Networks Inc. has begun the implementation of its plan to roll out a full suite of communications services to residential and commercial buildings situated along its 125 km. fibre optic network in the greater Vancouver marketplace. On March 7, 2007, the Company initiated its broadband Internet service launch at three residential buildings at UniverCity, part of what is to be a 4,000 unit, high-end residential development on the grounds adjacent to Simon Fraser University, and is providing its new customers in those buildings with the fastest Internet transmission speeds in Canada. On March 20, 2007, the company announced the introduction of a premium voice over Internet ("VoIP") telephone service, and is now preparing to launch other communications services, which include video on demand, video conferencing, online games, data backup and disaster recovery service and full IPTV service.

The Company is issuing a total of 350,000 incentive Stock Options at $0.42 in connection with the appointment of the advisory board.

The Company also wishes to announce the resignation of Robert Chikites as a director. Mr. Chikites became a director prior to the change in business of the Company to a telecommunications infrastructure contractor and service provider and assisted in the transition to date. He now moves to develop other business interests and the Company wishes to thank him for his many years of service.

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 enterprise class infrastructure designed to reach both residential and business consumers.

On behalf of the Board of Directors

Leslie E. Maerov, President and CEO

Shares issued: 22,030,063

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