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Microcap & Penny Stocks : MDU Communications Inc. - MDTV -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (737)	9/20/1999 9:47:00 AM
From: diddlysquatz	Read Replies (2) \| Respond to of 994

Company Press Release MDU Communications Experiences Substantial Growth in August RICHMOND, British Columbia--(BUSINESS WIRE)--Sept. 20, 1999--MDU Communications Inc. (OTC BB:MDTV - news) announced today that the company has experienced substantial growth for the month of August. Seventeen new access agreements, representing 3,176 suites, were signed in August. With penetration rates of approximately 50%, this indicates the company will see net revenues increase by approximately $30,000 per month once these sites are completed. MDU Communications currently has approximately 14,000 subscribers with over 300 buildings (at an average of 108 suites per building) committed by a letter of intent or access agreement. This represents over 30,000 additional suites where service is to be provided. Once completed, given the company's current penetration rate, these properties will generate additional net revenue of approximately $600,000 per month. Gross Programming Revenue from the company's digital set top program is now approximately $38 per subscriber per month. The company had originally forecast gross programming revenue at only $33 per month per subscriber. MDU's net revenue is now approximately $19 per month when the Digital Access fee is included instead of the $15 per month the company had forecast. With the increased programming revenue, MDU expects the total subscriber acquisition payback to decrease to closer to a two-year recovery than the three-year recovery the company had previously expected. Starting later this fall, MDU will begin using the new Star Choice 401 receiver. This will reduce equipment costs to deploy service into customers' suites by as much as $50 per suite. The company will save money in the deployment of service, and the customer will benefit from the increased features and benefits of the new digital receiver. MDU Communications is now providing competition to cable television at the Woodcroft Estates in North Vancouver, British Columbia. The Woodcroft site is comprised of 6 towers totaling 1,222 suites. MDU will activate the Woodcroft property this week and although the company is competing with cable at this site, to date, MDU has signed up over 850 subscribers. This represents a successful sale or penetration rate of over 65%. The basic service provided by MDU, which includes approximately 60 channels, is $19.95 per month. ''Woodcroft is a site that is proving to be a very profitable undertaking for the company,'' states MDU's President and CEO, Sheldon Nelson. ''We are very pleased with the results we have achieved in our pre-marketing phase at Woodcroft, and believe that once subscribers are able to witness the quality of digital service, we should add another 150 to 200 subscribers at this site.'' The company anticipates providing its high-speed Internet service this October at the Woodcroft Estates site. MDU is currently in the process of completing high-speed Internet beta trials at 5 properties. The first beta test site, the Sheraton Guildford Hotel in Surrey, British Columbia, is now installed and operating. MDU is testing several different forms of technology through the use of 3Com (Nasdaq:COMS - news) technology and product line to supply high-speed Internet solutions for both the hospitality and multiple unit residential markets. Up until now, most of these properties were prevented from receiving any type of high-speed Internet service due to wiring limitations inside the property. MDU is currently formalizing an agreement to provide the high-speed Internet service to its growing list of properties. The marketing of this service will provide an important new source of revenue for MDU. 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, availability of raw materials, 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.