UBS reports first quarter 2010 results

TORONTO, Jan. 19 /CNW/ - Unique Broadband Systems, Inc. ("UBS" or the "Company") (TSX Venture: UBS) today reported its operating and financial results for the first quarter of fiscal 2010, ended November 30, 2009.

Recent operating highlights include the following:

    
        -  On September 11, 2009, Look received the final $50 million of
           consideration due from the Inukshuk Wireless Partnership
           ("Inukshuk") following the receipt of regulatory approval of the
           transaction from Industry Canada and the satisfaction of all
           remaining conditions precedent to the sale of Look's spectrum and
           broadcast licence;

        -  Following the sale of its web hosting, domain name, and Internet
           businesses during fiscal 2009, Look successfully executed an
           agreement whereby its video subscribers were transitioned to Bell
           Canada;

        -  As of November 15, 2009 Look was no longer offering service to any
           subscribers;

        -  As of December 31, 2009 Look has decommissioned its wireless
           network across the provinces of Ontario and Quebec; and

        -  Look has reduced its full-time equivalent staff from 63 at August
           31, 2009 to six by December 31, 2009.
    

Financial highlights for the quarter ended November 30, 2009 included the following:

    
        -  Cash and cash equivalents and short-term investments at November
           30, 2009 totalled $42.1 million which represents an increase of
           $24.8 million from August 31, 2009. This increase is due primarily
           to the receipt of the final $50 million of consideration due from
           Inukshuk partially offset by the payment of Look's restructuring
           charges;

        -  Net loss for the quarter was $1.6 million, or a basic loss per
           share of $0.02; and

        -  Operating expenses for the quarter totalled $3.1 million, a
           decrease of $1.5 million or 32.4 per cent from the $4.6 million
           incurred during the quarter ended November 30, 2008.
    

Look's remaining assets consist primarily of its present cash and short-term investments of approximately $40 million, approximately $360 million of tax losses and the Milton facility and related infrastructure, which have been listed for sale.

Look continues to pursue opportunities with interested parties, including income trusts, to maximize the value of its remaining tax assets. To facilitate achieving this objective, Look's Board of Directors has retained BMO Capital Markets to assist in this process and UBS is willing to consider all of its options, including the sale of its 51.8 per cent control position in Look.

As Look finalizes its strategic direction, Look and the Company will disclose this to shareholders at the Annual and Special Meetings scheduled for February 23 and 24, 2010, respectively. The Company will continue to keep its shareholders apprised of any material developments as they occur.

    
    About Unique Broadband Systems, Inc.
    ------------------------------------
    

UBS is a publicly listed Canadian company that has a 51.8% fully diluted economic interest in Look Communications Inc. and other assets. The Company's website may be found at www.uniquebroadband.com.

    
    About Look Communications Inc.
    ------------------------------
    

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.

    
    Forward looking statements
    --------------------------
    

The corporate information contained in this release includes forward-looking statements regarding future events and the future performance of the Company that involve 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 may vary from the information provided herein and the variations may be material. Consequently, there is no representation by the Company that actual results achieved will be the same in whole or in part as those forecasts.

Neither the 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 release.

    
    This press release should be read in conjunction with Look's press
    release of January 19, 2010 announcing its results for the first quarter
    of fiscal 2010.
    ------------------------------------------------------------------------



    Unique Broadband Systems, Inc.
    INTERIM UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
    (in thousands of dollars)

    as at
    -------------------------------------------------------------------------
                                                    November 30,   August 31,
                                                           2009         2009
    -------------------------------------------------------------------------

    ASSETS
    Total current assets                              $  43,503    $  68,091
    Restricted cash                                         400          430
    Property and equipment                                1,901        1,995
    -------------------------------------------------------------------------
                                                      $  45,804    $  70,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Total current liabilities                         $  11,160    $  32,805
    Liability component of convertible debentures           926          917
    -------------------------------------------------------------------------
    Total liabilities                                    12,086       33,722
    -------------------------------------------------------------------------
    Non-controlling interest                             20,461       21,940

    Shareholders' equity
      Share capital                                      58,139       58,139
      Contributed surplus                                 3,497        3,459
      Deficit                                           (48,379)     (46,744)
    -------------------------------------------------------------------------
    Total shareholders' equity                           13,257       14,854
    -------------------------------------------------------------------------
                                                      $  45,804    $  70,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Unique Broadband Systems, Inc.
    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND
    DEFICIT
    (in thousands, except per share amounts)

    Three months ended November 30, 2009 and 2008
    -------------------------------------------------------------------------
                                                           2009         2008
    -------------------------------------------------------------------------
    Service and sales revenue                         $     434    $   3,588
    Carrier charges and cost of sales                       425        1,940
    -------------------------------------------------------------------------
    Gross margin from continuing operations                   9        1,648
    Operating expenses                                    3,100        4,587
    -------------------------------------------------------------------------
    Loss from continuing operations before
     the under noted                                     (3,091)      (2,939)
    Accretion on liability component of
     convertible debentures                                 (31)         (30)
    Net interest expense                                    (11)         (15)
    Adjustment to gain on sale of spectrum and
     broadcast licence                                      (61)           -
    Gain on sale of other property and equipment              -            2
    -------------------------------------------------------------------------
    Loss for the period from continuing operations
     before income taxes                                 (3,194)      (2,982)
    Income taxes                                              -            -
    -------------------------------------------------------------------------
    Loss for the period from continuing operations
      before non-controlling interests                   (3,194)      (2,982)
    Non-controlling interests                             1,519            -
    -------------------------------------------------------------------------
    Loss for the period from continuing operations       (1,675)      (2,982)
    Income for the period from discontinued
     operations                                              40        4,531
    -------------------------------------------------------------------------
    Income (loss) and comprehensive income
     (loss) for the period                               (1,635)       1,549
    Deficit, beginning of period                        (46,744)     (67,480)
    -------------------------------------------------------------------------
    Deficit, end of period                            $ (48,379)   $ (65,931)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Continuing operations:
      Basic and diluted loss per share                $   (0.02)   $   (0.03)

    Discontinued operations:
      Basic and diluted income per share              $    0.00    $    0.04

    Income (loss) per share:
      Basic and diluted                               $   (0.02)   $    0.01

    Weighted average number of shares outstanding:
      Basic and diluted                                 102,748      102,748
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Unique Broadband Systems, Inc.
    INTERIM UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
    (in thousands of dollars)

    Three months ended November 30,
    -------------------------------------------------------------------------
                                                           2009         2008
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Income (loss) for the period                    $  (1,635)   $   1,549
      Less: Income from discontinued operations
       for the period                                       (40)      (4,531)
      Items not affecting cash                           (1,271)       1,310
      Changes in non-cash working capital               (22,292)        (396)
      -----------------------------------------------------------------------
      Cash used in continuing operations                (25,238)      (2,068)
      Cash provided by discontinued operations               78          507
    -------------------------------------------------------------------------
    Cash used in operating activities                   (25,160)      (1,561)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Cash provided by (used in) continuing
       operations                                        13,880           (7)
      Cash provided by discontinued operations                -        1,957
    -------------------------------------------------------------------------
    Cash provided by investing activities                13,880        1,950
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net cash used in continuing operations              (11,358)      (2,075)
    Net cash provided by discontinued operations             78        2,464
    -------------------------------------------------------------------------
    Increase (decrease) in cash and cash equivalents    (11,280)         389
    Cash and cash equivalents, beginning of period       17,389        5,168
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period          $   6,109    $   5,557
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%SEDAR: 00010550E

SOURCE Unique Broadband Systems, Inc.

For further information: For further information: Peter Block, Investor and Media Relations, irinfo@uniquebroadband.com, (647) 259-3284

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