UBS reports second quarter 2010 results

Look not recommencing Management Services Agreement with UBS

TORONTO, April 22 /CNW/ - Unique Broadband Systems, Inc. ("UBS" or the "Company") (TSX Venture: UBS) today reported its operating and financial results for the second quarter of fiscal 2010, ended February 28, 2010.

As part of its ongoing restructuring plan, Look Communications ("Look") today notified UBS that it will not be recommencing the Management Services Agreement ("MSA") on its May 19, 2010 anniversary date. The decision not to recommence the MSA means that it will expire on the completion of the existing term, being May 19, 2012, or such earlier date that is mutually agreed to by UBS and Look. Since Look has maintained an annual pre-paid fee of $2.4 million, the cash impact to UBS for annual fees over the remaining term of the MSA will be $2.4 million.

Operating highlights for the quarter include the following:

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

        -  Look has reduced its full-time equivalent staff from 21 at
           November 30, 2009 to six by February 28, 2010.
    

Financial highlights for the quarter included the following:

    
        -  Cash and cash equivalents and short-term investments at
           February 28, 2010 totalled $37.6 million, which represents an
           increase of $20.2 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;

        -  Operating expenses for the quarter totalled $2.1 million, a
           decrease of $3.1 million or 60.1 per cent from the $5.2 million
           incurred during the quarter a year ago; and

        -  Net loss for the quarter was $1.2 million, or a basic loss per
           share of $0.01.
    

Look continues to pursue opportunities with interested parties to maximize the value of its remaining assets consisting primarily of its cash and short-term investment position of approximately $35 million, approximately $360 million of tax attributes and the Milton facility and related infrastructure.

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

UBS is a publicly listed Canadian company that has a 51.8 per cent 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 April 22, 2010 announcing its results for the second quarter of fiscal 2010.

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

    as at
    -------------------------------------------------------------------------
                                                    February 28,   August 31,
                                                           2010         2009
    -------------------------------------------------------------------------
    ASSETS
    Total current assets                              $  38,817    $  68,091
    Restricted cash                                         366          430
    Property and equipment                                1,831        1,995
    -------------------------------------------------------------------------
                                                      $  41,014    $  70,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Total current liabilities                         $   8,426    $  32,805
    Liability component of convertible debentures           935          917
    -------------------------------------------------------------------------
    Total liabilities                                     9,361       33,722
    -------------------------------------------------------------------------

    Non-controlling interest                             19,612       21,940

    Shareholders' equity
      Share capital                                      58,139       58,139
      Contributed surplus                                 3,519        3,459
      Deficit                                           (49,617)     (46,744)
    -------------------------------------------------------------------------
    Total shareholders' equity                           12,041       14,854
    -------------------------------------------------------------------------
                                                      $  41,014    $  70,516
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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


    Three and six months ended February 28, 2010 and 2009
    -------------------------------------------------------------------------
                                 Three months ended        Six months ended
                                    February 28,              February 28,
                                 2010         2009         2010         2009
    -------------------------------------------------------------------------
    Service and sales
     revenue                $       -    $   3,327    $     434    $   6,915
    Carrier charges and
     cost of sales                  -        1,814          425        3,754
    -------------------------------------------------------------------------
    Gross margin from
     continuing operations          -        1,513            9        3,161
    Operating expenses          2,059        5,163        5,159        9,750
    -------------------------------------------------------------------------
    Loss from continuing
     operations before the
     under noted               (2,059)      (3,650)      (5,150)      (6,589)

    Accretion on liability
     component of convertible
     debentures                  (111)         (28)        (142)         (58)
    Net interest expense           (4)         (22)         (15)         (37)
    Adjustment to gain on
     sale of spectrum and
     broadcast licence              -            -          (61)           -
    Gain on sale of other
     property and equipment         5            -            5            2
    -------------------------------------------------------------------------
    Loss for the period from
     continuing operations
     before income taxes       (2,169)      (3,700)      (5,363)      (6,682)
    Income taxes                    -            -            -            -
    -------------------------------------------------------------------------
    Loss for the period from
     continuing operations
     before non-controlling
     interest                  (2,169)      (3,700)      (5,363)      (6,682)
    Non-controlling interest      931           65        2,450           65
    -------------------------------------------------------------------------
    Loss for the period from
     continuing operations     (1,238)      (3,635)      (2,913)      (6,617)
    Income for the period
     from discontinued
     operations                     -            -           40        4,531
    -------------------------------------------------------------------------
    Loss and comprehensive
     loss for the period       (1,238)      (3,635)      (2,873)      (2,086)
    Deficit, beginning of
     period                   (48,379)     (65,931)     (46,744)     (67,480)
    -------------------------------------------------------------------------
    Deficit, end of period  $ (49,617)   $ (69,566)   $ (49,617)   $ (69,566)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Continuing operations:
      Basic and diluted loss
       per share            $   (0.01)   $   (0.04)   $   (0.03)   $   (0.06)

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

    Loss per share:
      Basic and diluted     $   (0.01)   $   (0.04)   $   (0.03)   $   (0.02)

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



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

    Three and six months ended February 28, 2010 and 2009
    -------------------------------------------------------------------------
                                 Three months ended        Six months ended
                                    February 28,              February 28,
                                 2010         2009         2010         2009
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
      Loss for the period   $  (1,238)   $  (3,635)   $  (2,873)   $  (2,086)
      Less: Income from
       discontinued
       operations for
       the period                   -            -          (40)      (4,531)
      Items not affecting
       cash                      (792)       1,007       (2,101)       2,317
      Change in non-cash
       operating assets
       and liabilities           (708)         524      (23,000)         128
      -----------------------------------------------------------------------
      Cash used in
       continuing operations   (2,738)      (2,104)     (28,014)      (4,172)
      Cash provided by
       (used in) discontinued
       operations                   -          (12)          78          495
    -------------------------------------------------------------------------
      Cash used in operating
       activities              (2,738)      (2,116)     (27,936)      (3,677)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Cash provided by (used in)
     financing activities      (1,841)           1       (1,841)           1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
      Cash provided by (used in)
       continuing operations    3,033           (5)      16,951          (12)
      Cash provided by
       discontinued operations      -        1,436            -        3,393
    -------------------------------------------------------------------------
    Cash provided by
     investing activities       3,033        1,431       16,951        3,381
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net cash used in
     continuing operations     (1,546)      (2,108)     (12,904)      (4,183)
    Net cash provided by
     discontinued operations        -        1,424           78        3,888
    -------------------------------------------------------------------------
    Decrease in cash and
     cash equivalents          (1,546)        (684)     (12,826)        (295)
    Cash and cash equivalents,
     beginning of period        6,109        5,557       17,389        5,168
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period          $   4,563    $   4,873    $   4,563    $   4,873
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

%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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