Axia's OpenNet Proposal Successful for Singapore Next Generation National Broadband Network Company



    CALGARY, Sept. 26 /CNW/ - Axia NetMedia Corporation ("Axia" or the
"Corporation") is pleased to announce that the Infocomm Development Authority
of Singapore ("IDA") has selected the OpenNet consortium as its successful
Network Company ("NetCo"). OpenNet will be contracted to provide passive fibre
grid services for Singapore's Next Generation National Broadband Network
("NGNBN").
    Axia has a 30 percent interest in OpenNet with partners Singapore
Telecommunications Limited ("SingTel") Singapore Press Holdings ("SPH") and SP
Telecommunications Pte Ltd ("SPT") taking up the remaining interest with
30 percent, 25 percent and 15 percent interests respectively.
    OpenNet expects to complete the agreement contracting process with the
IDA as planned within the next seven months and expects that the
Singapore-wide fibre grid will be completed by June 2012. This fibre grid will
be made available on equal terms at very compelling prices to any parties
qualified by the IDA. When completed, OpenNet will provide Singapore with a
truly open, better and faster fibre-to-the-home network.
    Mr. Art Price, Chairman and CEO, Axia NetMedia, said: "OpenNet's approach
is future-proof with no compromises from either the technology or business
structure perspectives for the passive segment of the network. I believe that
Singapore will be the showcase for how compelling the no-conflict open access
fibre-to-the-premise solution can be for end-users in metropolitan
communities. Axia now has references for the best in class Next Generation
Network solutions for rural, regional and metropolitan communities."
    Axia's 30 percent share ownership of OpenNet represents an attractive
investment opportunity. OpenNet will create the Next Generation Network
solution based on open access no-conflict principles. A key component of the
solution involves OpenNet acquiring access to existing infrastructure through
usage fees that vary with the market adoption of OpenNet's services.
    Axia forecasts that its capital commitment to OpenNet should not exceed
$36.0 million and would be contributed over the construction and commissioning
period. Axia will account for its interest in OpenNet using the equity method
of accounting, and accordingly will report only its proportionate share of
OpenNet's operating results. As is typical in the development of large open
access Next Generation Network initiatives, the early construction and
commissioning years are typified by start-up losses until the networks become
active, gain increasing market share and become profitable. Axia's return on
this investment will be dependent upon the marketplace's adoption of OpenNet's
services.
    This is the first part of IDA's competitive RFP process for a complete
Next Generation National Broadband Network. The second part is the provision
of active broadband services over the fibre grid. Axia is qualified to respond
to the second RFP and submissions are due before the end of this calendar
year.

    Axia provides Real Broadband(TM) IP services and solutions through
planning, designing and operating no conflict Open Access Next Generation
Networks. Axia trades on the Toronto Stock Exchange under the symbol "AXX".
For more information, visit its website at www.axia.com.

    This news release contains forward looking statements, including, without
limitation, statements containing the words "should", "believe", "anticipate",
"may", "plan", "will", "continue", "intend", "expect", "estimate" and other
similar expressions which constitute "forward looking information" within the
meaning of applicable Canadian securities laws. These statements are based on
our current expectations, estimates, forecasts and assumptions about the
operating environment, economies and markets in which we operate and are
subject to important assumptions, risks and uncertainties that are difficult
to predict. The assumptions, risks and uncertainties that could cause actual
results to differ materially from the forward looking information, include,
but are not limited to, changes in customer markets, changes in demand for our
services, our inability to deliver services in a timely and cost efficient
manner, technological change, general economic conditions and other risks
detailed from time to time in our ongoing filings with the Canadian securities
regulatory authorities, including in our Annual Information Form, which
filings can be found at www.sedar.com. Given these assumptions, risks and
uncertainties, readers are cautioned not to place undue reliance on such
forward looking statements. Unless otherwise required by applicable securities
laws, we undertake no obligation to publicly update or revise any forward
looking statements either as a result of new information, future events or
otherwise.

    %SEDAR: 00002394E




For further information:

For further information: Dawn Tinling, VP, Investor Relations and
Communications, Axia NetMedia Corporation, (403) 538-4074,
dawn.tinling@axia.com

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