UNIQUE BROADBAND SYSTEMS AWARDED MILESTONE CONTRACT
WITH MAJOR U.S. SATELLITE DIGITAL RADIO SERVICE PROVIDER,
CD RADIO INC.
MARKHAM, Ont., July 15 /CNW/ - Further to its announcement on July 2,
1998 of the first commercial digital audio broadcast (DAB) installation in Canada, Unique Broadband Systems, Inc. (VSE: UBS) today announced that the Company has been awarded a contract from CD Radio Inc. (NASDAQ: CDRD) of New York in the amount of approximately CDN$3,700,000. Pursuant to the terms of the contract, CD Radio has paid a deposit in the amount of $1,100,000. This contract represents the first major installation of its kind in the United States and Unique Broadband Systems has been chosen to provide its complete state-of-the-art DAB solution for this installation. This contract reaffirms Unique Broadband Systems' leadership position in the North American DAB market.
''The significance of this contract to Unique Broadband Systems goes far beyond this initial installation. We will be in a position to showcase our DAB solution to a captive market in the U.S. After spending over $2 million in research and development over the past three years, this contract will ensure that DAB will become one of the Company's most significant revenue producers in the immediate future. With a further 40 cities in the plan for the full rollout of the CD Radio network, our Company is in a position to become the prime supplier in a rollout with equipment requirements valued at more than
U.S. $100 million. As DAB is simultaneously rolling out in Canada, Unique is positioned to emerge as the leading supplier of DAB systems in North America,'' said Stephen J. Rosen, Vice-President and Chief Financial Officer of Unique Broadband Systems.
About Unique Broadband Systems' DAB Products
Unique Broadband Systems' strong commitment to research and development has resulted in its ability to offer a variety of Digital Audio Broadcast equipment to service providers on a global basis. Unique Broadband Systems is the only company in North America that has developed a complete end-to-end base station solution which includes transmitters, COFDM modulators, source encoders, multiplexers and remote control workstations, in both L-band and S-band. The current generation of DAB product is equipped with an embedded web server that can be accessed anywhere in the world through the Internet.
About CD Radio
In October of 1997, the U.S. Federal Communications Commission granted CD Radio (NASDAQ: CDRD) one of two national satellite radio broadcast licenses. CD Radio is building a 100 channel satellite-to-car radio system for the broadcast of music and other programming to motorists throughout the United States.
Unique Broadband Systems, Inc. (VSE: UBS) is a recognized world leader in the design, development and manufacture of broadband wireless and other wireless solutions that serve the service provider, telecommunications and broadcast industries. With headquarters in Markham, Ontario, Unique Broadband Systems markets its products globally, providing 7X24 support. For additional information visit the Company's World Wide Web site at uniquesys.com.
Unique Broadband Systems is a trademark of Unique Broadband Systems, Inc.
On behalf of the Board of
Unique Broadband Systems, Inc.
Alex Dolgonos
President and Chief Executive Officer
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For further information: Stephen J. Rosen, Chief Financial Officer,
Unique Broadband Systems, Inc., Markham, Ontario, L3R 1C2,
Tel: (905) 474-0091, Fax: (905) 474-1563, Email: stephenr@uniquesys.com
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