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

To: scouser who wrote (842)	11/24/1999 9:26:00 AM
From: diddlysquatz	Read Replies (1) \| Respond to of 994

MDTV ANNOUNCES FINANCING OF UP TO $57 MILLION Richmond, British Columbia - MDU Communications Inc. ("MDU"), the Canadian operating subsidiary of MDU Communications International, Inc. (the "Company"), has signed an agreement in principle with MerBanco Capital to enter into a long-term "subscriber acquisition cost" lease financing program. The parties hope to finalize a formal agreement as soon as possible. The agreement in principle is contingent upon the legal documentation being put in place reflecting the final terms and conditions agreed upon by the parties. William H. Molle, of MerBanco Capital and Gary J. Monaghan, President of MDU Communications Inc. said "MDU and MerBanco have worked diligently in preparing this agreement in principle and look forward to achieving the earliest possible closing date." The agreement between the parties is for the provision of up to $57 million in financing to be used to fund the majority of MDU's "subscriber acquisition costs" over the next 4 to 5 year period. In addition to providing financing for future subscriber acquisitions, under the terms of the agreement, MerBanco Capital will purchase and lease back digital satellite equipment MDU currently has installed and operating with subscribers for approximately $1.5 million. This will free up $1.5 million in capital to be used, in part, for deployment to the current 250 building backlog, representing potentially 30,000 subscribers, waiting for MDU's Star Choice digital satellite television service. "This proposed financing is very exciting news as it will give us the ability to ramp up our sales and installations without being held back by funding requirements." explains Sheldon Nelson, Chief Executive Officer of MDU. Furthermore, Mr. Nelson commented that "This financing is ideal as it puts us in a very strong position for accelerated penetration in our market without the shareholder dilution generally associated with equity financing." The Company's filings, including current financial reports, can be accessed through the EDGAR database at www.sec.gov. If you have any questions or require more information, please visit our web site at www.MDUC.com or contact Investor Relations at 1-800-794-9076 or investor@mduc.com. On behalf of the directors: signed "Sheldon Nelson" Sheldon Nelson, Director Corporate Headquarters 108 - 11951 Hammersmith Way Richmond, BC, Canada, V7A 5H9 www.mduc.com Investor Relations: Tel: (604) 277-8152 Fax: (604) 277-8301 (800) 794-9076 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, 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.