Intercable ICH Inc. completes a 1 million Euros portion of its previously announced 6 million Euros private placement and plans to complete the remaining 5 million Euros in the short term



    Stock Symbol: ICH

    MONTREAL, June 2 /CNW Telbec/ - Intercable ICH Inc. ("Intercable"), a
Canadian telecommunications company that seeks broadband telecommunications
opportunities in the international market, announced today that it has closed
a portion equal to approximately 1 million Euros ($1,538,063.50) (the
"Offering") of its 6 million Euros planned private placement previously
announced (see Intercable's news releases dated March 6, 2009 and April 29,
2009) pursuant to which an aggregate of 4,394,467 units (the "Units") were
sold at a price of $0.35 per Unit, raising gross proceeds of approximately
$1.54 million. Each Unit consists of one common share and one common share
purchase warrant. Each common share purchase warrant entitles the holder to
purchase one common share of Intercable at a price of $1.50 until April 4,
2010.
    The proceeds from the offering are expected to be used to fund the
build-out of its broadband network in Reunion Island.
    One of Intercable's institutional investor (an insider owning more than
10% of the outstanding common shares of Intercable prior to the Offering), MCB
Equity Fund Ltd., together with a joint actor, Commercial Holding Co. Ltd.,
subscribed for an aggregate of 1,883,756 Units pursuant to the Offering.

    Remaining 5 Million Euros Private Placement

    Discussions remain ongoing with the objective to complete, in the short
term, the remaining 5 million Euros of the private placement. The remaining 5
million Euros private placement would be subscribed in shares of Intercable
Africa Ltd. ("ICA"), a wholly-owned subsidiary of Intercable, at a price of
17.03 Euros per share, a price per share equivalent to $0.35 per share of
Intercable (the "ICA Private Placement"). Upon the conditions described above,
current insiders of Intercable could participate in the ICA Private Placement.
There is no guarantee that Intercable will be able to finalize this
transaction upon the terms described above or at all.

    Regulatory Matters

    Each of the Offering and the ICA Private Placement constitutes a "related
party transaction" for Intercable pursuant to Regulation 61-101 respecting
Protection of Minority Security Holders in Special Transactions ("Regulation
61-101"), which requires Intercable to obtain a formal valuation and the
minority approval of its holders in connection with each of the Offering and
the ICA Private Placement, unless there is an exemption available from those
requirements.
    Intercable benefits from an exemption from the requirements to obtain a
formal valuation and the minority approval in connection with the execution of
each of the Offering and the ICA Private Placement given that the board of
directors of Intercable, acting in good faith, has determined that the
following conditions have been met and all of the independent directors of
Intercable have confirmed such opinion: i) Intercable is in serious financial
difficulty; ii) each of the Offering and the ICA Private Placement is designed
to improve the financial position of Intercable; and iii) the terms of each of
the Offering and the ICA Private Placement are reasonable in the circumstances
of Intercable. Ziyad Bundhun, representative of MCB Equity Fund Ltd on the
board of directors of Intercable, has not voted in connection with the
approval of each of the Offering and ICA Private Placement.

    About Intercable

    Intercable is a Canadian telecommunications corporation that seeks
broadband telecommunications opportunities in the international market.
Intercable's business strategy is to focus on underserved telecommunications
and cable markets by building and operating its own broadband networks using
state-of-the-art technology capable of offering cable television, high-speed
Internet and telephony services, at a low cost and with high service quality.
Intercable targets markets with i) limited or no cable service; ii)
feasibility of aerial cable construction; and iii) stable political
environments. Management believes that Reunion Island currently represents the
most significant growth opportunity for Intercable.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this press release.

    This press release contains forward-looking statements that are subject
to known and unknown risks and uncertainties that could cause actual results
to vary materially from targeted results. Such risks and uncertainties include
those described in Intercable's annual information form dated July 8, 2008 or
in the filings made by Intercable from time to time with securities
regulators. Intercable undertakes no obligation to publicly release the result
of any revision of these forward-looking statements to reflect events or
circumstances after the date they are made or to reflect the occurrence of
unanticipated event.




For further information:

For further information: Guy Laflamme, President and Chief Executive
Officer, (450) 582-7953, guylaflamme@intercable.ca; Serge Dupuis, Chief
Financial Officer, (514) 904-0163, sergedupuis@intercable.ca;
www.intercable.ca

Organization Profile

INTERCABLE ICH INC.

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