USURF America (American Stock Exchange: UAX) is well-positioned to ride the next big technology wave: the wireless Internet. The company has developed "Quick-Cell DSL," one of the most flexible fixed-wireless Internet access delivery systems on the market. Quick-Cell DSL operates in unlicensed spectra, can be deployed at a fraction of the cost of wired architecture, and is available to areas where high-speed DSL (digital-subscriber-line) service is not.

The Quick-Cell DSL system is high-capacity, and using its proprietary system software, UAX can create, monitor and control various broadband solutions, including DSL equivalent, from a single location. The company can provide a super-fast, always-on connection at a competitive price, and users do not need to tie up or add a phone line to access the Internet. Customer modems simply plug into a computer's serial port.

KEY POINTS

UAX has funding. UAX has entered into a $10 million common stock purchase agreement with an institutional investor to fund the initial build-out of Quick-Cell DSL systems in targeted cities. The company also has a relationship with a prominent U.S. investment banking firm, Gruntal & Co.

Quick deployment. Quick-Cell DSL deployment is quick and relatively inexpensive, requiring minimal engineering. Quick-Cells can also be deployed on an as-needed basis, with no requirement that an entire area be built out before system start-up. The company has entered into a tower-lease agreement with SBA Communications (Nasdaq: SBAC) for tower space in 23 U.S. cities.

"We expect that the acquisition of Pipeline's customers will allow us to add operations with positive cash flow and gain valuable roof rights at each of the properties, allowing further deployment of USURF's wireless broadband network," said Ken Upcraft, executive vice president. "Pipeline's 500 customers represent only a 14% penetration rate among the 3,562 units in the 12 MDU properties. We intend to increase the marketing efforts at the properties immediately and also capitalize on the increase in new tenants in the newly completed properties."

About USURF America, Inc.

USURF Rides the Waves
USURF America Inc. (AMEX: UAX), has made significant moves. Until last year, the company's prime asset was dialup provider CyberHighway, with 8,500 customers. In its last quarterly report, filed on November 19, 2002 from Nevada, USURF noted that CyberHighway's customers had decreased to zero after a petition of involuntary bankruptcy was filed by ProPeople Staffing, CTC Telecom, Inc., and Hawkins-Smith.

The company noted, "some of CyberHighway's creditors believe that CyberHighway's as-yet unasserted damage claims against the original petitioning creditors and their law firm and a claim against Dialup USA, Inc. represent CyberHighway's most valuable assets."

USURF vowed to reinvent itself as a wireless company, using its Quick-Cell Wireless technology. The company issued stock to shorten the tenure of its top four executives in an agreement with Evergreen Capital, paid them in stock instead of cash, and replaced them with people from Evergreen Capital. The president became chairman of the board and forgave his loans to USURF.

In November, 2002, USURF issued 2 million shares of stock to acquire NeighborLync, Inc. of Colorado, and 200,000 shares to acquire MDU Cable Properties of Colorado.

During the first nine months of 2002, the company had issued about 17,620,000 shares of stock to cover 24 separate agreements for consulting and legal services and also to pay executive salaries. On January 22, 2003, the company replaced its auditor.

In January, the company announced agreements to provide wireless and cable services to buildings owned by MDU Cable Properties using NeighborLync equipment.

On January 16, 2003, USURF acquired DMJ Communications, a facilities-based CLEC, for cash and stock, allowing it to provide local and long distance calling, private cable television, and broadband Internet service.