METROBRIDGE NETWORKS INTERNATIONAL INC.
918-1030 West Georgia Street
Vancouver, B.C.
V6E 2Y3
Tel. No. (888) 628-1240 Fax No. (888) 628-2650
MetroBridge to Acquire Utah Broadband of Salt Lake City
VANCOUVER, B.C. October 29, 2007 - MetroBridge Networks International Inc. (TSX-V: MEB) is pleased to announce that it has signed a Letter of Intent to acquire Utah Broadband, LLC, a Salt Lake City-based company with operations in six counties including the Salt Lake City, Provo, and Park City metropolitan areas for US$5.4 million. Utah Broadband has approximately 3,000 customers with an Average Revenue per User (ARPU) of approximately US$55 per month. The company is a profitable operation with annual revenues exceeding US$2.2 million.
The US$5.4 million purchase price for Utah Broadband consists of US$4 million in cash, and US$1.4 million in MetroBridge shares based on the thirty day average closing price. The shares issued will be escrowed for a maximum of 15 months. The transaction is expected to close early in 2008 and is subject to customary closing conditions including the completion of due diligence by MetroBridge, receipt of all necessary regulatory approvals and the negotiation and execution of a definitive agreement.
"We believe this transaction represents great value for MetroBridge," said Dorian Banks, President of MetroBridge. "We look forward to working with Steve McGhie and his team to drive up ARPU and revenues through the build-out and marketing of a high capacity network, along with MetroBridge's suite of value-added products and services within the Utah Broadband coverage area."
"Joining MetroBridge, with its expertise in providing exceptional products and services for the business community, gives us an opportunity to greatly expand our dominance by delivering high-end commercial bandwidth solutions in the greater Salt Lake area and future US markets," said Steve McGhie, CEO of Utah Broadband.
RBC Daniels, L.P., a subsidiary of RBC Capital Markets, served as financial advisor to Utah Broadband.
About Utah Broadband, LLC
Utah Broadband has been delivering broadband wireless access to customers in six counties along the Wasatch Front, including the Salt Lake City, Provo, and Park City metropolitan areas for nearly six years. Using advanced wireless technologies, the company network is based on Motorola's Industry leading Canopy Wireless platform, which operates in the 5 GHz spectrum. Utah Broadband offers several service packages designed to provide solutions for every size of business.
About MetroBridge Networks International Inc.
MetroBridge , a leading international fixed wireless provider, delivers broadband wireless access using pre- WiMAX and other advanced wireless technologies. Its highly redundant mission critical network provides connections up to 2500Mbps in Canada and the United States. MetroBridge's aggressive growth strategy contemplates acquisitions throughout North America and additional complementary products and services. The Company operates in all market segments including police and 911 services, the financial industry, retailers and businesses of all sizes. MetroBridge was the first Canadian carrier selected to join the WiMAX Forum to assist the industry in establishing equipment interoperability. Please visit the Company's website at www.metrobridge.com.
For further information please contact:
Samantha Singh, MetroBridge Investor Relations
Toll Free: (888) 628-1240
Direct: (604) 628-5627
Fax: (888) 628-2650
ssingh@metrobridge.com <mailto:ssingh@metrobridge.com>
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release contains certain forward-looking statements that reflect the current views and/or expectations of MetroBridge Networks International Inc. with respect to performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly from those disclosed herein. Investors are cautioned not to rely on these forward-looking statements. MetroBridge Networks International Inc. does not undertake to update these forward-looking statements.