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FiberTower Receives Termination Notice

SAN FRANCISCO -- FiberTower Corporation (Nasdaq: FTWR), a wireless backhaul services provider, announced that it recently received an early termination notice from one of its emerging carrier customers to terminate service at approximately 220 billing locations on February 28, 2011, and that the customer is reviewing approximately 50 additional locations for possible early termination by March 31, 2011. The monthly billing revenue generated by the service targeted for February termination is approximately $256,000 while the monthly billing revenue generated by locations being evaluated for March termination is approximately $88,000.

The Company recognizes that it is normal course of business for customers to make decisions to take down service based on their own particular circumstances or requirements. For this reason, the Company includes early termination liability in all of its contracts. The locations being terminated and being reviewed for termination represent a portion of the total FiberTower service contracted by this customer. Upon termination of all the services mentioned above, the customer's early termination charges will be approximately $2 million payable immediately.

FiberTower does not believe that these early terminations will have a material impact on the company's cash position in 2011.

FiberTower Corp.

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