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MDU Communications Int'l Inc.
Exchange: OTCBB:MDTV
52 Week Low-High: $7.00/$0.32
Current Price: $5.25
Public Float: 5,226,140
Outstanding: 12,249,084
CUSIP: 582828109
S&P Listed: Yes
Website: www.mduc.com
E-mail: investor@mduc.com
Fully Reporting issuer, Filings available on EDGAR.
To request a research analyst report, go to
mduc.com
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MDU Communications Int'l Inc. is a leading provider of digital satellite
television broadcasting to apartments, condominiums, hotels and gated
communities and is poised to enter U.S. and Asian markets with expanded
services including broadband Internet access, security systems, and telephony.
Company Press Release
MDTV Digital Satellite TV, Broadband Internet Successful Deployment
Campaign Underway to Multi Dwelling Unit Marketplace
RICHMOND, British Columbia--(BUSINESS WIRE)--Feb. 24, 2000--MDU
Communications International Inc. (OTC: BB:MDTV) -- Mr. Sheldon Nelson, CEO
and Chairman, reports that the company is realizing very good growth in
subscriber activations, and in the signing of exclusive digital satellite
service long term building access agreements. According to Mr. Nelson,
''Our sales and marketing strategy to the Multi-Dwelling Unit (MDU)
marketplace focuses on providing greater choice and value to customers, and
we expect to realize the subscriber growth previously forecasted.''
With the recent closing of the U.S.$7.725 million financing, MDTV is in the
process of deploying service to 23 new properties. These properties
represent 3,200 potential customers in 5 major Canadian centers: Vancouver,
Calgary, Edmonton, Winnipeg, and Halifax. MDTV expects to complete the
marketing and in-suite installation of these properties in the next 30
days. Since Jan 1st, 2000, MDTV has signed an additional 21 access
agreements and 22 new letters of intent with property owners and managers
that represent a combined 7,537 potential new subscribers. According to Mr.
Gary Monaghan, President, ''We have a very experienced and well connected
team of regional sales managers that are very capable of delivering access
agreements at a significant rate. This will facilitate our expected
expansion into the Toronto area and into major US markets in the near
future.''
In addition to the above signings, MDTV is also pleased to announce the
Aquilini Investment Group has committed 14 properties located throughout
Canada, representing 3900 units, to receiving MDTV's services. The
commitment includes the signing of a 5 year exclusive access agreement for
their 1175 unit West Edmonton Village property. This installation will
replace incumbent cable with Digital Satellite TV, Broadband Internet, and
ADT Security services provided by MDTV. Service will be initiated at the
site in approximately 30 days.
Joseph Strang, VP of Sales and Marketing states, ''The company is
increasing and training additional staff to provide the necessary customer
service and to expedite the direct sales presentations required with
deployment. We are committed to realizing our competitive advantage by
providing a bundled package of services to these customers.''
About MDTV
MDU Communications International, Inc. is the national master system
operator for Star Choice Television, one of only two licensed providers of
direct-to-home satellite broadcasting services in Canada. MDTV provides
digital satellite television, high-speed (broadband) Internet access, and
monitored security services to the multi-dwelling unit (MDU) market place
in Canada with expected expansion into the US and Asia. MDTV currently
serves approximately 14,000 subscribers in 150 properties and has an
additional 343 buildings with signed letters of intent or access
agreements, which could increase the subscriber base to over 50,000 in the
next 12-18 months.
To request a research analyst report from MDU Communications Int'l Inc., go to
mduc.com
About MDU Communications Int'l Inc.
MDU's high-tech communications solutions market of multi-dwelling units, as
well as universities and large institutions is huge and largely ignored by
potential competitors focusing on single-family dwellings. In the U.S.
alone, there are an estimated 30 million multi-dwelling residences.
MDU offers owners, managers and developers of multi-dwelling units complete
wiring infrastructures, systems, hardware, and digital set-top receivers
for residents. Broadcast signals captured through a single master dish are
distributed throughout the building to each unit via fiber or coaxial
cable. MDU's television service offers more programming choices with
superior digital sound and video quality for less money than many
comparable cable services. The company's technology also allows it to offer
high-speed Internet access up to 350 times faster than traditional 28K
dial-up connections, in-suite security systems, and telephony services all
over the same wiring infrastructure.
MDU currently provides digital satellite television service to over 150
properties and 14,000 subscribers in Canada. The company holds another 300
letters of intent or access agreements with Canadian property owners and
managers that will boost MDU's subscriber base to approximately 50,000 by
2001. To date, MDU has experienced up to a 70% market penetration rate in
its multi-dwelling units.
The Company
MDU Communications Inc., founded in 1998 and a wholly owned subsidiary of
MDU Communications International Inc., is the National Master System
Operator for Canada's Star Choice Television, one of only two licensed
providers of direct-to-home satellite services.
MDU revenues flow from the sale of program subscriptions and monthly
digital access fees. The company earns a 30% share on programming revenues
of C$43.95/month, plus an additional C$7.95/month in digital Internet
access fees. Telephony fees and in-suite security services will add
significantly to this revenue stream.
A recent preferred stock offering was oversubscribed and generated $7.725
million (US) in working capital needed to expand existing Canadian
services, deploy into a 300-plus building backlog, and expand into the U.S.
market. The company reports extensive U.S. and Canadian institutional
investor interest.
MDU launched its first combined television/high-speed Internet access
service at the new Hilton Vancouver Airport Hotel in June 1999 in
cooperation with 3Com Corporation and other strategic partners. The company
is now acquiring Cirrinet Communications Inc., a unique provider of
high-speed broadband Internet access and Web services to the multiple
dwelling unit and Hospitality market. Cirrinet utilizes new or existing
wiring to deliver simultaneous telephone access and affordable, dedicated
Internet connections cost-effective Internet solution for building owners
seeking to avoid costly infrastructure build-outs.
Outlook
MDU will utilize current regional and direct marketing infrastructure to
extend its services throughout North America. The company has just
completed an agreement to market security services for ADT, a leading
international security monitoring firm. Third party marketing for various
local and long distance providers at MDU's multiple dwelling unit locations
is also being explored.
A letter of intent has been signed with WRE Enterprises for MDU to install
both television and Internet services in a Denver, Colorado multiple
dwelling property (498 units).
"This first property in the U.S. opens the door to the massive U.S. market.
Several of our existing clients own multi-dwelling unit properties, hotels
and gated communities in the U.S. The interest we have received from other
property owners over the past 60 days is growing as more attention is
focusing on this under-served market," says MDU President Gary Monaghan.
MDU's combined television, Internet, security and telephony capabilities
should enhance the company's U.S. market penetration. Presently, less than
half of one percent of North American households connect to the Internet at
broadband speeds. In just two years, that number is expected to increase to
25 percent of all online households. Recent legislative changes make
satellite television service providers more competitive with cable
monopolies. MDU hopes the business model established in its Star Choice
multi-dwelling agreement can be repeated with U.S. satellite providers such
as Direct TV or Echostar.
As part of its Internet strategy, MDU plans to create a subscriber portal
offering special content and buying opportunities. A distribution agreement
with Recoton Corporation (Nasdaq: RCOT) a global leader in the development,
manufacturing and marketing of consumer electronic accessories and audio
products authorizes MDU to market RCOT products on its Internet portal. The
products, include such brand names as Advent(R) Wireless, Recoton(R)
accessories, AR(R)/Acoustical Research(R), and Jenson(R), and are expected
to generate significant revenues for MDU.
MDU recently announced a letter of intent to form a joint venture with
Antech (Hong Kong) Ltd. in the Hong Kong, Taiwan, Macau, and China
multi-dwelling unit markets. MDU would have a 25 percent interest in the
newly created joint venture corporation and will be partially responsible
for new technologies, management, marketing expertise, North American
supplier relationships, and beta site management.
"It is MDTV's goal to become a complete provider of digital satellite
television, high speed Internet, local and long distance telephone and
in-suite security services to the North American and Asian multiple
dwelling unit marketplace," says MDU CEO Sheldon Nelson.
For additional information visit the Web Site: www.mduc.com or
e-mail: investor@mduc.com, or telephone toll Free: 1.800.794.9076
The Company's filings, including current financial reports, can be accessed
through the EDGAR database at www.sec.gov. For additional information
please see www.mduc.com or contact Investor Relations.
Corporate Headquarters 108 - 11951 Hammersmith Way Richmond, BC, Canada,
V7A 5H9 www.mduc.com Investor Relations: Tel: (800) 794-9076 Fax: (604)
277-8301 Investor@mduc.com
Contact:
MDU Communications International, Inc.
Investor Relations, 800/794-9076
Fax: 604/277-8301
Investor@mduc.com
''Safe Harbor'' statement under the Private Securities Litigation Reform
Act of 1995: This release contains forward looking statements that are
subject to risks and uncertainties, including, but not limited to, the
impact of competitive products and pricing, product demand and market
acceptance, new product development, reliance on key strategic alliances,
the regulatory environment, fluctuations in operating results and other
risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
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