UBS reports first quarter 2008 results



    Updates on 2008 AWS spectrum auction

    TORONTO, Jan. 29 /CNW/ - Unique Broadband Systems, Inc. (the "Company")
(TSX Venture: UBS) today reported its financial and operating results for the
first quarter of fiscal 2008.

    
    Financial highlights for Quarter 1, ended November 30, 2007 included the
following:

    -   Gross revenues for the quarter were $5.4 million compared to
        $6.6 million for the quarter ended November 30, 2006;
    -   Operating expenses decreased by $0.1 million or 2% to $4.9 million
        for the quarter ended November 30, 2007 (quarter ended November 30,
        2006 - $5 million);
    -   Loss from continuing operations for the quarter was $1.3 million
        compared to $0.8 million a year ago; and
    -   Loss and comprehensive loss for the quarter ended November 30, 2007
        was $1.3 million or $0.01 per share compared with the loss of
        $1.8 million or $0.02 per share for the quarter ended November 30,
        2006.
    

    During the first quarter of fiscal 2008, on November 28, 2007, the
Minister of Industry, the Honourable Jim Prentice, announced the final policy
decisions for the 2008 AWS spectrum auction of 105 MHz, to commence on May 27,
2008, in a policy document entitled "Policy Framework for the Auction for
Spectrum Licences for Advanced Wireless Services and other Spectrum in the
2 GHz Range". The announcement by the Minister of Industry included, amongst
other things, the following significant policy decisions:

    
    1.  Mandatory roaming provisions;
    2.  Mandatory antenna tower and site sharing;
    3.  Binding arbitration for commercial negotiations;
    4.  A set aside of 40 MHz of AWS spectrum for new entrants;
    5.  50 MHz of AWS spectrum, 10 MHz of spectrum as an extension to the
        existing PCS band and 5 MHz of spectrum as one way broadcast spectrum
        is available to all bidders; and
    6.  Minimum opening bids of over $500 million for all geographic areas.
    

    The Company believes the new policy decisions will foster better and more
diverse services for consumers. In particular, the spectrum set aside,
mandated roaming and antenna tower and site sharing, coupled with binding
arbitration to conclude commercial agreements, are likely to encourage
increased competition and lower prices in Canada's wireless industry.
    On December 22, 2007, Industry Canada released Notice No. DGRB-011-07 -
Licensing Framework for the Auction for Spectrum Licenses for Advanced
Wireless Services and other Spectrum in the 2 GHz Range. This notice outlines,
amongst other things, the rules and requirements for the competitive bidding
process established by the Minister of Industry, and the financial deposits
that are required on application by bidders. Questions may be submitted to
Industry Canada in respect of the auction and the policy decisions contained
in the Minister's announcement on November 28, 2007, and comments may be
submitted to Industry Canada in respect of the policy decisions on mandatory
roaming and tower and site sharing by January 22, 2008. Industry Canada has
indicated that it will post answers to these questions and finalize license
conditions on roaming and tower and site sharing by February 27, 2008. Other
key events and dates in respect of the auction are as follows:

    
    1.  The deadline for bid applications is March 10, 2008;
    2.  Industry Canada will publish the list of applicants on March 14,
        2008;
    3.  Industry Canada will publish the list of qualified bidders on
        March 31, 2008;
    4.  Industry Canada will hold a mock auction for qualified bidders on
        May 21-23, 2008; and
    5.  The AWS auction will commence on May 27, 2008.
    

    In addition, on January 24, 2008, the Federal Communications Commission
("FCC") in the United States commenced the 700 MHz auction offering an
additional 62 MHz of spectrum which is expected to raise in excess of
$10 billion.
    New entrants such as Google Airwaves Inc., Vulcan Spectrum LLC (founded
and chaired by Microsoft co-founder Paul Allen) and Chevron are participating
in the 700 MHz auction and the Company believes that this new influx of
bidders signals a new era in the mobile information, communications, and
entertainment services in North America. The Company believes that in general,
new services, lower prices, and greater choices will soon be the norm for
North American consumers. In addition, Canadian service providers are behind
the service offerings in Korea, China, and Japan and will continue to lag
until such time that the Canadian service providers utilize global
technologies and equipment rather than those developed solely for the North
American market.

    About Unique Broadband Systems, Inc.
    ------------------------------------
    UBS is a publicly listed Canadian company that has a 51.6% fully diluted
economic interest in Look Communications Inc. and other assets. With its
licensed spectrum through its subsidiary, Look, UBS is a Canadian digital
television broadcaster and broadband wireless service provider. The Company's
website may be found at www.uniquebroadband.com.

    About Look Communications Inc.
    ------------------------------
    Look's mission is to be an M(3) - Mobile Multi Media - entertainment and
information service provider in Ontario and Québec. The Corporation currently
delivers a full range of communications services, including high-speed and
dial-up Internet access, Web applications, digital television distribution,
and superior customer service to both the business and residential markets.
Look's shares are listed on the TSX Venture Exchange under the symbols "LOK"
for Multiple Voting Shares and "LOK.A" for Subordinate Voting Shares. Look's
website may be found at www.look.ca.

    The corporate information contained in this release contains
forward-looking statements regarding future events and the future performance
of the Company that involves risks and uncertainties that could cause actual
results to differ materially. Assumptions used in the preparation of such
information, although considered reasonable by the Company at the time of
preparation, may prove to be incorrect. The actual results achieved will vary
from the information provided herein and the variations may be material.
Consequently, there is no representation by UBS and Look that actual results
achieved will be the same in whole or in part as those forecasts.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    For additional information, please review the Company's and Look's
Audited Consolidated Financial Statements and Management's Discussion and
Analysis of Financial Condition and Results of Operations for the years ended
August 31, 2007 and 2006.


    
    UNIQUE BROADBAND SYSTEMS, INC.

    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
    (in thousands of Canadian dollars)

    As at
    -------------------------------------------------------------------------
                                                    November 30,   August 31,
                                                           2007         2007
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                                 $9,131      $11,366
    Capital assets                                       11,254       12,508
    Deferred charges                                         92          129
    -------------------------------------------------------------------------
                                                        $20,477      $24,003
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
    Total current liabilities                           $17,343      $18,921
    Long-term debt                                        1,776        1,800
    Liability component of convertible debentures           767          769
    -------------------------------------------------------------------------
    Total liabilities                                    19,886       21,490
    -------------------------------------------------------------------------

    Non controlling interest                              1,350        2,202

    Shareholders' equity/(deficit)
    Share capital                                        58,139       58,139
    Contributed surplus                                   2,281        2,056
    Deficit                                             (61,179)     (59,884)
    -------------------------------------------------------------------------
    Total shareholders' equity/(deficit)                   (759)         311
    -------------------------------------------------------------------------
                                                        $20,477      $24,003
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    UNIQUE BROADBAND SYSTEMS, INC.

    INTERIM UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
    (in thousands of Canadian dollars, except shares and per share amounts)

    Three months ended November 30, 2007 and 2006
    -------------------------------------------------------------------------
                                                           2007         2006
    -------------------------------------------------------------------------

    Service and sales revenue                          $  5,419     $  6,636

    Carrier charges and cost of sales                     2,691        3,142
    -------------------------------------------------------------------------

    Gross margin                                          2,728        3,494
    Operating expenses                                    4,921        5,021
    -------------------------------------------------------------------------
    Loss before the following:                           (2,193)      (1,527)
    Accretion on liability component of convertible
     debenture                                              (39)         (39)
    Net interest income                                      48           52
    -------------------------------------------------------------------------

    Loss before non-controlling interest                 (2,184)      (1,514)
    Non-controlling interest                                889          676
    -------------------------------------------------------------------------

    Loss from continuing operations                      (1,295)        (838)
    Income/(Loss) from discontinued operations                -       (1,000)
    -------------------------------------------------------------------------

    Loss and comprehensive loss                          (1,295)      (1,838)
    Deficit, beginning of period                        (59,884)     (55,703)

    -------------------------------------------------------------------------
    Deficit, end of period                             $(61,179)    $(57,541)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss per share -
     continuing operations:                            $  (0.01)    $  (0.01)
    Basic and diluted loss per share -
     discontinued operations:                          $  (0.00)    $  (0.01)
    Basic and diluted loss per share                   $  (0.01)    $  (0.02)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    UNIQUE BROADBAND SYSTEMS, INC.

    INTERIM UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands of Canadian dollars)

    Three months ended November 30, 2007 and 2006
    -------------------------------------------------------------------------
                                                           2007         2006
    -------------------------------------------------------------------------
    Cash flows from/(used in) operating activities:
    -----------------------------------------------
      Loss from continuing operations                   $(1,295)     $  (838)
      Non-controlling interest                             (889)        (676)
      Amortization of capital assets                      1,262        1,160
      Amortization of deferred charges                       13           24
      Amortization of stock based compensation              260          150
      Accretion on liability component of
       convertible debenture                                 39           39
      Change in non-cash operating working capital          160        1,610
      -----------------------------------------------------------------------
      Cash flows from/(used in) continued operations       (450)       1,469
      Cash flows from/(used in) discontinued operations  (1,724)           -
      -----------------------------------------------------------------------
      Cash flows from/(used in) operating activities     (2,174)       1,469
      -----------------------------------------------------------------------

    Cash flows from/(used) in financing activities:
    -----------------------------------------------
      Repayment of obligations under capital leases          (8)         (15)
      -----------------------------------------------------------------------
      Cash flows used in financing activities                (8)         (15)
      -----------------------------------------------------------------------

    Cash flows from/(used in) investing activities:
    -----------------------------------------------
      Restricted cash                                         8           13
      Purchase of capital assets                             (8)        (125)
      -----------------------------------------------------------------------
      Cash flows used in investing activities                 -         (112)
    -------------------------------------------------------------------------

    Increase/(decrease) in cash and cash equivalents     (2,182)       1,342
    Cash and cash equivalents, beginning of period        9,650        8,481
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period            $ 7,468      $ 9,823
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00010550E




For further information:

For further information: Peter Block, Investor and media relations,
E-mail: irinfo@uniquebroadband.com, (403) 531-0331, (416) 586-0180

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