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Tuesday, July 26, 2005

DONOBi Completes IP Television Beta

DONOBi Completes IP Television Beta

Company Successfully Deploys and Tests Digital Television Over Fiber; Expands Market Area After Market Analysis

BREMERTON, Wash., July 26 /PRNewswire-FirstCall/ -- DONOBi, Inc. (OTC Bulletin Board: DNOB), a leading provider of digital media solutions, including voice, data, Internet, and television, today announced the completion of its IP Television Beta test in Grant County, Washington, with a group of 200 IP Television and Internet subscribers over the local public utility district's fiber optic network.

In conjunction with its year long testing, the company established its relationships with key vendors and also completed contacts with content providers to supply over 130 digital television channels to their customers. Of the 20+ Internet providers on the local fiber network, DONOBi is the only digital television provider on the fiber network providing this service to customers.

Bill Wright, DONOBi Chairman and CEO, said, "The offering of bundled services to customers, including digital television, Internet, and telephone services, will continue to be a larger and larger part of the competitive edge that companies will utilize to increase customers and revenues. Companies such as SBC, Verizon, and Comcast have led the charge in urban markets with their infrastructure build outs and new bundled product offerings. Rural markets, such as the ones that we are focused on, have unlimited potential and very little competition for these same services. Successful deployments of bundled service packages enable us to move a traditional dial-up customer from a $20 per month account to 5 times that in revenue. We are no longer talking about a static market and customer base; it now becomes very dynamic and allows for a number of cross selling opportunities and increases to both our top and bottom line numbers."

About DONOBi, Inc.

DONOBi, Inc. is an Internet solutions company providing voice, digital television, Wi-Fi and Internet services to business, residential and municipal customers over a variety of mediums, including fiber optic and high-speed wireless technologies. The Company provides high-quality communications, content and IT services to its growing customer base, and through its Shared Tenant Services division, offers sophisticated technology-driven services and solutions that specifically address issues facing the apartment, hospitality, commercial property and government housing industries -- the ability to obtain high-speed Internet access at a reasonable per unit cost. The Company's overall strategy is to maintain a next-generation, technological advantage and become a dominant, bundled solutions provider for small to medium-sized businesses and residents within emerging regional markets throughout the U.S. For more information, please visit the Company's web site at www.donobi.com.

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this news release may contain or constitute forward-looking statements. These forward-looking statements are based on current expectations and are subject to risk and uncertainties. In connection with the "safe harbor" provisions of the Private Securities Litigation Act of 1995, DONOBi provides the following cautionary statement identifying important factors which, among others, could cause the actual results or events to differ materially from those set forth or implied by the forward-looking statements and related assumptions.

Source: DONOBi, Inc.

CONTACT: Bill Wright, President & Chief Executive Officer, of DONOBi,
Inc., +1-360-473-1160, or bwright@donobi.com

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

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