EXHIBIT 99.1
IRVINE, CA--(BUSINESS WIRE)--October 17, 2000--Universal Broadband Networks,
Inc. (NASDAQ:NMS:UBNT), announced that its efforts to secure substantial new
vendor financing have been unsuccessful, creating substantial uncertainty about
the Company's ability to continue operations. The Company requested that NASDAQ
halt trading of the Company's common stock while management weighs the Company's
options.
"Over the past several months, we have diligently pursued vendor financing which
would have provided additional equipment and working capital for our network
deployment of DSL and VoDSL services," stated Michael A. Sternberg, CEO and
President of UBNetworks.
"The funding efforts in recent weeks had focused on major vendors such as Nortel
Networks and Lucent Technologies," continued Mr. Sternberg. "Nortel has been a
long-time partner of UBNetworks, and Lucent has had a good relationship with the
Company as well."
Mr. Sternberg further explained: "All of the indications from Nortel that we
would obtain additional financing had been positive over the recent weeks. We
believed that the Company had cleared most obstacles to securing a new round of
equipment financing by obtaining agreements in principle with major investors to
bolster the Company's balance sheet and enhance the capital structure. At the
same time, our engineers had been working with the vendors on revised network
designs and integration of new technology. It appeared until today that we would
be able to secure additional financing and equipment from Nortel, in particular,
to continue the expansion of the network and deployment of services."
"This morning we were informed that Nortel's credit committee has decided not to
extend any additional funding or to finance additional equipment for the
Company. Unfortunately, market conditions beyond our control dictate these
circumstances."
The Board of Directors is now considering the options available given the
Company's need for immediate capital.
This news release may contain forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements involve risks
and uncertainties, including, without limitation, continued acceptance of the
company's products, subscriber growth, product demand, competition, and other
risks and uncertainties detailed from time to time in the company's periodic
reports, including quarterly reports on Form 10-Q and annual reports on 10-K.
This and additional information is available on the Company's Web site at
www.ubnetworks.com or upon request.
Universal Broadband Networks, Inc. e-mail: [email protected]
Julie Wahlstedt, Investor Relations 949/260-8100; Fax 261-8372
www.ubnetworks.com
