Eagle Broadband to Raise $10M

LEAGUE CITY, Texas and LISLE, Ill. -- Eagle Broadband, Inc. (AMEX:EAG), a leading supplier of broadband products, services and content, and Aggregate Networks, LLC, a leading provider of broadband infrastructure financing, announced today that they have signed a Letter of Intent for a $10 million round of financing targeted to begin within three weeks.

The funding will help facilitate Eagle’s aggressive market expansion plans by contributing to working capital requirements and enable strategic investments that should drive high-margin revenue growth, spur new customer acquisition and dramatically increase subscriber rates in each of Eagle Broadband’s target enterprise, residential, hospitality, aviation and government/military markets. Key areas targeted for investment include:

“We are very pleased to be securing this financing in such a challenging investment climate,” said Dr. H. Dean Cubley, chairman and chief executive officer, Eagle Broadband. "Aggregate Networks’ decision to lead this funding round is a tremendous endorsement of the Eagle Broadband team and our unique broadband technology and products and services. We look forward to tapping Aggregate’s extensive network of contacts, management expertise, and resources within Eagle’s target broadband markets to fuel our continued growth and better serve our customers and shareholders.”

“We see a very bright future for Eagle. We are deeply involved with a number of municipal broadband build-outs and evaluate dozens of investment opportunities per month giving us a wide view of the broadband space,” said Rick Kaufmann, principal and co-founder, Aggregate Networks. “What attracted us to Eagle Broadband and sold us on leading this investment round, was the strength of their technology, the timeliness and breadth of their product lines and how well-positioned Eagle is to profit from the rapid growth of the broadband markets. Eagle is the leading company we evaluated that provides such a wide range of high demand, turnkey broadband communications solutions to residential, commercial/enterprise and government customers alike.”

The expansion financing should increase Eagle’s ability to deliver more robust, higher value broadband communications services to its customers including homeowners wanting a lower cost bundle of super-high-speed Internet access, phone, cable TV and security services; municipalities interested in accelerating economic development by offering more advanced, IP-based communications services to their residents; as well as corporate and government customers needing outsourced security and IT management services.

Eagle Broadband