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Multiband Announces Completion of New Debt Financing

Press Release: Multiband Corporation
November 18, 2004
MINNEAPOLIS, MN -- Multiband Corporation (NASDAQ:MBND) announced Nov. 16 the completion of a secured convertible debt financing.

The offering was led by H.C. Wainwright & Co., Inc. of New York and funded by a group of institutional and accredited investors. Multiband intends on utilizing the new long-term debt facility to restructure existing short-term debt obtained through the firm's extensive acquisition activities and for general working capital purposes.

Under the terms of the debt offering, the company will issue secured convertible promissory notes in the aggregate principal amount of approximately $2,100,000. The convertible notes accrue interest at the rate of 6% per annum, are payable semi-annually at the option of the company in cash or shares of the company's common stock, and are convertible into shares of common stock at the rate of $1.00 per share. The company also is required to file a registration statement providing for the resale of the shares issuable upon the conversion of the notes.

Multiband provides voice, data and video systems and services to multiple dwelling units (MDUs), including apartment buildings and time-share resorts throughout the United States. In addition, Multiband is an exclusive DIRECTV Master System Operator and one of the largest providers of DIRECTV Services to apartments, lodging, hospitality locations, restaurants and timeshare resorts in the United States.

About Multiband Corporation

Multiband Corporation (NASDAQ:MBND), formerly Vicom, Incorporated, formed in 1975, provides voice, data and video systems and services to business and government clients, and to multiple dwelling units (MDUs), including apartment buildings and time share resorts. The Company's products and services are sold to clients located throughout the United Sates. The Company has two operating divisions, Multiband Business Solutions and Multiband Subscriber Services, which encompass the wholly owned subsidiary corporations Multiband USA, Inc. and URON, Inc.

In July 2004, the Company acquired Rainbow Satellite LLC, a private cable operator. Rainbow, with locations throughout the United States, has subscriber concentrations in California, Colorado, Illinois, Texas, Florida and New York. In August of 2004, Multiband acquired assets from 21st Century Satellite LLC, adding 23 upscale RV and Mobile Home Parks to its portfolio and raising its owned and serviced subscriber base to over 70,000. Multiband has offices in Fargo, Minneapolis, Rochester, Los Angeles, San Francisco, Denver, Chicago and Tampa with satellite facilities through subcontractors in St. Louis, Dallas and New York. For additional information, please go to www.multibandusa.com.

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company's financial results, can be found in the Company's Registration Statement and in its Reports on Forms 8-K filed with the Securities and Exchange Commission (SEC).

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Contact: 
     Strategic Growth Int'l, New York
     Stan Altschuler, 212-838-1444
     or
     H.C. Wainwright & Company, New York
     John Clarke, 212-856-5738
     or
     Multiband Corporation, Minneapolis
     James L. Mandel, 763-504-3000

Source: Multiband Corporation