SOURCE: Urban Communications Inc.

Urban Communications Inc.

February 18, 2016 18:08 ET

Urban Communications Inc. Granted Leave to Appeal to Supreme Court of Canada

VANCOUVER, BC--(Marketwired - February 18, 2016) - Urban Communications Inc. (TSX VENTURE: UBN),announces that the Supreme Court of Canada has granted the Company leave to appeal a decision of the Court of Appeal of British Columbia relating to a dispute with a customer in connection with the exercise of options to renew leases of fibre optic strands on the Company's network.

At issue is whether the customer effectively exercised options to renew long term leases of fibre optic strands connecting multiple sites over 95 km. of network. If Urban is successful in the appeal then it will have a claim against the customer for compensation for the use of the fibres since May, 2012, and the parties will then either reach an agreement on a future lease, or the Company will regain use of the substantial number of fibres for other commercial opportunities. If the customer is successful then the Company will have no further claim for lease compensation.

In January, 2013, an arbitrator made an order that the customer had properly exercised the options. Upon the successful appeal by the Company to the Supreme Court of British Columbia the arbitrator's decision was reversed. The customer appealed that order and the B.C. Court of Appeal reversed the Supreme Court of B.C. order and reinstated the arbitrator's award. The Company has now been granted leave to appeal to the Supreme Court of Canada on legal issues of national importance in commercial transactions and arbitrations in order to have the order of the Court of Appeal reversed. The appeal process is likely to take up to one year to complete.

ABOUT URBAN COMMUNICATIONS INC.

Urban Communications Inc. (TSX VENTURE: UBN) is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its 200 km. state-of-the-art carrier grade fibre optic network in Metro Vancouver and Victoria to commercial, residential and public sector customers. Urban has recently launched high-speed Internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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