U.S. Wireless Online Completes Acquisition of YYireless1.Net and Secures $3 Million Capital Funding Commitment

U.S. Wireless Online Completes Acquisition of YYireless1.Net and Secures $3 Million Capital Funding Commitment

LOUISVILLE, Ky. and PITTSBURGH, Feb. 2 /PRNewswire-FirstCall/ -- U.S. Wireless Online, Inc. (BULLETIN BOARD: UWRL) ; (website: www.uswirelessonline.com) today announced that it has completed the acquisition of the business and assets of YYireless1.Net (YYireless1). The agreement to acquire YYireless1 was first announced on January 21, 2005, and the transaction closed on February 1, 2005. US Wireless also announced that it has received a $3 million institutional funding commitment. The first disbursement of $1.5 million under the commitment, structured as a series of Callable Secured Convertible Promissory Notes, has been received by US Wireless. Additional details regarding both transactions will be filed on Form 8-K with the Securities and Exchange Commission.

"The acquisition of YYireless1 is expected to contribute to U.S. Wireless Online's earnings in 2005 and will allow the Company to gain entry into a new service market: Pittsburgh, Pennsylvania," noted Rick Hughes, Chief Executive Officer of U.S. Wireless Online, Inc. "Our goal is to use YYireless1 as a platform for aggressive expansion in and around the Pittsburgh metropolitan area."

YYireless1.Net, LLC (www.yyireless1.net), a wireless broadband communications company that provides last-mile Internet access and Metropolitan Area Network (MAN) solutions, is headquartered in Pittsburgh, PA. It was founded by three former wireless telephony engineers with over 50 years of combined wireless network engineering experience. The company operates a state-of-the-art wireless broadband network using three radio spectrums -- 900 MHz and 2.4 GHz for suburban applications, and 5.3-5.8 GHz for high-density, commercial applications. Additionally, the company offers customer-engineered bandwidth and Metropolitan Area Network solutions from 256 Kbps to 500 Mbps.

Upon the closing of the acquisition, Mr. Timothy Pisula, CEO of YYireless1.Net, joined the US Wireless Online management team as Executive Vice President of Broadband Technology. Mr. Pisula was named CEO of YYireless1.Net, LLC upon its formation in 2002. In 1998, he was involved in the formation of LiveWire Ventures, LLC, an investment and management firm focused on providing software solutions and application service provider (ASP) services to the wireless telecommunications industry. He served as Chief Technology Officer of LiveWire Ventures, LLC, and he participated in start-up, acquisition and divestiture activities within the LiveWire group of companies. Mr. Pisula was previously Vice President and Chief Technology Officer at PriCellular Corporation, a publicly traded telecommunications company until its 1998 sale to a financial acquirer backed by a subsidiary of AT&T Wireless Services, Inc. Before joining PriCellular, he spent nine years with AT&T Wireless Services, rising to the position of Vice President, Technical Operations, where he was responsible for that company's network operations in the Northeast Region. Previously, he held senior management posts in engineering, information technologies and billing services for McCaw Cellular/AT&T Wireless.

Leveraging its carrier-grade Network Operations Center (NOC) and existing wireless broadband infrastructure, U.S. Wireless Online intends to expand its wireless service area and revenue base through direct sales, channel sales partners and acquisitions within the emerging and highly fragmented wireless broadband industry. The Company is currently engaged in discussions with multiple potential channel sales partners and 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.

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.yyireless1.net/

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


-------
Profile: intent