Cardinal Communications Launches Cardinal Connect Division to Expand Company's Digital Video On Demand Services

Cardinal Communications Launches Cardinal Connect Division to Expand Company's Digital Video On Demand Services

New Division to target U.S. Hotels and Cardinal Residential Communities

BROOMFIELD, Colo., May 30 /PRNewswire-FirstCall/ -- Cardinal Communications, Inc. (BULLETIN BOARD: CDNC) , a diversified provider of bundled digital communications and video-on-demand services, and a specialized developer of residential real estate, today announced it has formed the Cardinal Connect division, which will focus on marketing the company's GalaVu services to the hospitality industry in the United States. Cardinal Communications previously announced it had acquired a 10-year license to the rights of GalaVu's advanced Digital Video On Demand (DVOD) pay-per-view platform.

Ed Garneau, chief executive officer of Cardinal, said, "The formation of Cardinal Connect represents an important addition to Cardinal's suite of video and digital services. The new division will focus on opportunities within both the hospitality and residential markets. In addition to our current bundled digital services, our residential customers will soon have access to pay-per-view movies even before most cable operators can offer them."

Steve Basmajian, president of Phoenix-based Cardinal Connect, said, "We are pursuing a broad range of opportunities for GalaVu's Blackhawk DVS system, and are encouraged by the feedback we are receiving from current and prospective customers. Our recent installation of the Blackhawk system at a 613-room luxury hotel in Los Angeles is indicative of the major opportunities on which we are focused. The U.S. hospitality market contains an estimated 10 times the number of hotel rooms in Canada, which is GalaVu's core market. In addition, Cardinal's presence in the residential marketplace should be of great strategic benefit to our long-term marketing efforts."

Cardinal Communications acquired the rights to GalaVu when it agreed to purchase a 64 percent stake in Entertainment Media & Telecoms Corporation Limited, GalaVu's parent company. As part of the transaction, Cardinal provided a bridge loan to fund GalaVu's near-term working capital needs.

About Cardinal Communications, Inc.

Cardinal Communications operates a suite of vertically integrated businesses that provide bundled digital communications services (voice, video and high-speed Internet), digital video-on-demand services, and high-quality real estate to the residential marketplace. The Company's expertise in communication infrastructure and turnkey residential development allows Cardinal to capitalize on growing demand among homebuyers for modern residences that are pre-equipped with a range of digital communications options. The Company is also partnering with other developers that seek Cardinal's expertise in designing, building and operating residential communication networks that will deliver long-term revenue opportunities.

Cardinal also operates Get-A-Phone, a provider of specialized local and long-distance calling programs in select U.S. markets. Based in Broomfield, Colo., publicly traded Cardinal trades on the Bulletin Board under the symbol "CDNC." For more information, visit the Company's website at http://www.cardinalcomms.com/.

SAFE HARBOR STATEMENT: Some information in this release is forward looking. These forward-looking statements may be affected by the risks and uncertainties in Cardinal Communications and its subsidiaries and divisions. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Cardinal Communications' Securities and Exchange Commission filings. Cardinal Communications wishes to caution readers that certain important factors may have affected and could in the future affect its actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward- looking statement made by or on behalf of Cardinal Communications. There are many factors that will determine whether Cardinal Communications will be successful in its endeavors, including, without limitation, access to adequate capital and consumer acceptance of its telecommunications service offerings. Cardinal Communications undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Contact: Craig Cook, Chief Administrative Officer
Cardinal Communications, Inc.
303-285-5348

Source: Cardinal Communications, Inc.

CONTACT: Craig Cook, Chief Administrative Officer of Cardinal
Communications, Inc., +1-303-285-5348

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

-------
Profile: intent