U.S. Wireless Online to Acquire United Broadband Networks

U.S. Wireless Online to Acquire United Broadband Networks

Acquisition Will Expand Company's Service Territory to Include Lexington, Kentucky

LOUISVILLE, Ky., Dec. 15 /PRNewswire-FirstCall/ -- U.S. Wireless Online, Inc. (BULLETIN BOARD: UWRL) ; (website: www.uswirelessonline.com), today announced that it has entered into an agreement to acquire United Broadband Networks (UBN). While terms of the acquisition were not disclosed, U.S. Wireless Online will not require additional financing in order to complete the transaction. The acquisition, which is scheduled to close on or before January 10, 2005, should be accretive to U.S. Wireless Online's earnings in FY2005.

Founded in 2002 by John S. Binkley, President, and Jack B. Dulworth, CEO, UBN (www.unitedbbnetworks.com) is a wireless broadband internet company headquartered in Louisville, Kentucky's high-tech corridor, "eMain USA", which owns and operates state-of-the-art high-speed networks in the Louisville and Lexington, Kentucky metro areas. In addition to managing its own commercial networks, UBN recently completed the sale of a wireless network to the Center for Rural Development (CRD) in Somerset, Kentucky. The CRD received several million dollars under a federal grant from the Department of Justice to deploy mobile data equipment for the Kentucky State Police and other First Responders across a ten-county area in Central and Eastern Kentucky. In 2003, UBN was awarded a contract to provide consultation and other services to the Nashville-Davidson County Metro Government (Nashville) involving the deployment of a wireless network for the city's Fire Department. UBN was selected after extensive evaluations by both The CRD and Nashville.

"In addition to its network assets, UBN will contribute to our Company a stable base of profitable, commercial wireless broadband customer accounts," stated Rick E. Hughes, Chief Executive Officer of U.S. Wireless Online, Inc. "We believe UBN will contribute significantly to our network, and it is an excellent example of the type of small, well managed businesses that are currently operating successfully throughout the wireless broadband industry. The acquisition will also allow U.S. Wireless to gain entry into a new market -- Lexington, Kentucky -- where we intend to aggressively expand the existing customer base."

"We are very proud of what UBN has accomplished as a stand-alone company," stated John S. Binkley, President of UBN. "However, as we contemplated the future, it became obvious that UBN would need additional infrastructure, personnel and other resources in order to achieve its growth and customer service goals."

"After meeting with the management of U.S. Wireless and analyzing the Company's infrastructure and business model, we concluded that the strategic objectives of both companies could be accomplished more effectively by joining forces," added Jack B. Dulworth, CEO of UBN. "U.S. Wireless is quickly becoming one of the largest wireless broadband providers in the region, and we look forward to playing a key role in its future growth."

Leveraging its carrier-grade network operations center and existing wireless broadband infrastructure, U.S. Wireless Online intends to expand its wireless coverage area and revenue base through acquisitions within the emerging and highly fragmented wireless broadband industry. The Company is currently engaged in discussions with multiple acquisition candidates.

About U.S. Wireless Online, Inc.

U.S. Wireless Online owns and operates one of the nation's largest wireless Internet broadband networks with a coverage area, including recently announced acquisition candidates, of over 1,000 square miles. The Company provides wireless "last mile" high-speed Internet access (a wireless connection from a major trunk line to a customer's location) in the rapidly growing wireless broadband industry. U.S. Wireless Online is headquartered in Louisville, Kentucky, where it also owns and operates a carrier-grade network operations center (NOC) that is equipped with advanced fire suppression systems and Cisco routers currently configured to support over 1.06 gigabits per second of capacity.

For more information, visit www.uswirelessonline.com and www.unitedbbnetworks.com.

This press release contains certain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Factors that could cause or contribute to such differences include, but are not limited to, market acceptance of products and technologies, competitive factors, the Company's ability to continue to secure sources of financing and other factors described in the Company's filings with Securities and Exchange Commission. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

For more information please visit the Company's website at www.uswirelessonline.com or contact the Company at (502) 213-3700.


Source: U.S. Wireless Online, Inc.

CONTACT: U.S. Wireless Online, Inc., +1-502-213-3700

Web site: http://www.unitedbbnetworks.com/

Web site: http://www.uswirelessonline.com/


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