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Market Wire

New DIRECTV Agreement Positions MDU Communications Competitively for Increased Growth; New Property Launches Accelerate

Market Wire,  August, 2007  

Underscoring its commitment to accelerate new subscriber growth in the multi-family market, MDU Communications International, Inc. (OTCBB: MDTV), a leading end-to-end exclusive provider of DIRECTV® digital satellite television programming, high-speed Internet and other premium communication and information services to the residential multi-family market, today announced a new agreement with DIRECTV.

With the new agreement, the Company will leverage its current property owner contact base and be able to more aggressively pursue new business opportunities within the Northeast, Mid-Atlantic, Southeast and Midwest markets, with the ultimate goal of both increasing its digital satellite television programming penetration and delivery of new advanced services to the multi-family resident. Having a set-top receiver in every residence allows each individual resident to upgrade to the full array of DIRECTV programming, Pay-Per-View movies and events, NFL SUNDAY TICKET(TM) and a variety of foreign-language programming. DIRECTV has also set the stage to become the leading provider of High Definition services in the industry with plans to deliver up to 100 national HD channels and expand its local HD channel services to up to 75 markets by year-end.

The new agreement expands the Company's relationship with DIRECTV by providing the foundation for new subscriber growth, delivery of new advanced services over DIRECTV's industry-leading technologies and an increased level of customer care. It will also serve as a catalyst for the Company to deliver increased subscriber growth both within its currently deployed 500 plus multi-family properties, representing over 120,000 residences, and to the significant number of new multi-family properties throughout its key markets.

"This agreement represents a significant commitment by both DIRECTV and MDU Communications to the multi-family market," said Sheldon Nelson, President and CEO of MDU Communications. "The agreement extends for several years our exclusive relationship with DIRECTV and gives MDU Communications and its customers great confidence that DIRECTV is committed to growing this special and important market."

While the Company continues to push its bulk strategy forward, the new agreement will also allow it to pursue the exclusive and competitive markets more aggressively. As the Company achieves greater success in deploying the DIRECTV service, it also plans to expand the delivery of high-speed Internet services to a greater percentage of its 500 plus properties.

MDU Communications continues to experience success in deploying DIRECTV bulk services in key markets such as Chicago where it recently signed long-term access agreements with the 253-unit Vision on State Street and the 180-unit Clock Tower residences. In the Southeast, the Company is in the process of deploying digital bulk DIRECTV to a growing number of both new construction and existing high-profile multi-family properties, including the 311-unit Radius in Hollywood, Florida and the 201-unit Veranda in Plantation, Florida. In the Northeast, the company recently launched DIRECTV services on an exclusive basis to Rosemary Ridge II, a 187-unit new property development in Alexandria, Virginia.

About MDU: MDU Communications International, Inc. (OTCBB: MDTV) is a leading provider of premium communication/information services, including digital satellite television and high-speed (broadband) Internet services, exclusively to the United States multi-dwelling unit (MDU) marketplace - estimated to include 26 million residences. Through its wholly owned subsidiary, MDU Communications (USA) Inc., MDU Communications delivers DIRECTV® digital satellite television services and high-speed (broadband) Internet systems and is committed to delivering the next generation of interactive communication services to MDU residents. For additional information, please see www.mduc.com or contact Investor Relations.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements relating to financial information, shareholder valuation, subscriber and revenue growth and implementation of new programs and developments of the Company. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements, including, but not limited to, changes in financial condition, efforts on behalf of the Company to finalize and deploy certain programs, bringing to fruition strategic alliances, fluctuations in operating results and operating plans, deployment of new subscribers and conversion of existing subscribers, results of the new committee on shareholder value, market forces, supplier negotiations and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's 10-K for the year ended September 30, 2006, filed on or about January 2, 2007.