Tucows Announces Commencement of Third Dutch Auction Tender Offer to Repurchase up to 5 Million Common Shares

    TORONTO, Aug. 20 /CNW/ - Tucows Inc. (NYSE AMEX:  TCX, TSX:TC) a global
provider of domain names, email and other Internet services, announced today
that it is commencing a modified "Dutch auction" tender offer to repurchase up
to 5,000,000 shares of its common stock, representing approximately 7.4% of
Tucows' outstanding shares. The closing price of Tucows common stock on the
NYSE Amex on August 19, 2009 was $0.54.
    Under the tender offer, shareholders will have the opportunity to tender
some or all of their shares at a price within the range of $0.40 to $0.60 per
share. Based on the number of shares tendered and the prices specified by the
tendering shareholders, Tucows will determine the lowest per share price
within the range that will enable it to buy 5,000,000 shares, or such lesser
number of shares that are properly tendered. If shareholders of more than
5,000,000 shares properly tender their shares at or below the determined price
per share, Tucows will purchase shares tendered by such shareholders, at the
determined price per share, on a pro rata basis. Additionally, if more than
5,000,000 shares are properly tendered, the number of shares to be repurchased
by Tucows pursuant to the tender offer may, at the discretion of Tucows, be
increased by up to 2% of Tucows' outstanding shares, or approximately
1,357,000 shares, without amending or extending the tender offer.
    Shareholders whose shares are purchased in the offer will be paid the
determined purchase price per share net in cash, without interest, after the
expiration of the offer period. The offer is not contingent upon any minimum
number of shares being tendered. The offer is subject to a number of other
terms and conditions specified in the offer to purchase that is being
distributed to shareholders. The offer will expire at 5:00 P.M., New York City
Time, on Friday, September 18, 2009.
    The information agent for the offer will be StockTrans, Inc. None of
Tucows, its board of directors or the information agent is or will be making
any recommendation to stockholders as to whether to tender or refrain from
tendering their shares into the tender offer. Shareholders must decide how
many shares they will tender, if any, and the price within the stated range at
which they will offer their shares for purchase by Tucows. Tucows' board of
directors and its executive officers do not intend to participate in this
tender offer.
    This press release is for informational purposes only and is not an offer
to buy or the solicitation of an offer to sell any shares of Tucows' common
stock. The offer will be made solely by the offer to purchase and the related
letter of transmittal. Stockholders and investors are urged to read Tucows'
tender offer statement on Schedule TO that will be filed with the Securities
and Exchange Commission in connection with the tender offer, which includes
exhibits, the offer to purchase and the related letter of transmittal, as well
as any amendments or supplements to the statement when they become available,
because they contain important information. Each of these documents has been
or will be filed with the Securities and Exchange Commission, and investors
may obtain them for free from the Securities and Exchange Commission at its
website (www.sec.gov) or from StockTrans, Inc., the information agent for the
tender offer, by directing such request to: StockTrans, Inc., Attn:
Re-Organization Dept., 44 West Lancaster Avenue, Ardmore, PA 19003, telephone
(800) 733-1121.

    About Tucows

    Tucows is a global Internet services company. OpenSRS manages over 8
million domain names and millions of email boxes through a reseller network of
over 9,000 web hosts and ISPs. Hover is the easiest way for individuals and
small businesses to manage their domain names and email addresses. YummyNames
owns premium domain names that generate revenue through advertising or resale.
Butterscotch.com is an online video network building on the foundation of
Tucows.com. More information can be found at http://tucowsinc.com.

    This news release contains, in addition to historical information,
forward-looking statements related to such matters as our business, including
the timing and total number of shares to be purchased under the proposed
tender offer. Such statements are based on management's current expectations
and are subject to a number of uncertainties and risks, which could cause
actual results to differ materially from those described in the
forward-looking statements. Information about potential factors that could
affect Tucows' business, results of operations and financial condition is
included in the Risk Factors sections of Tucows' filings with the Securities
and Exchange Commission. All forward-looking statements included in this
document are based on information available to Tucows as of the date of this
document, and Tucows assumes no obligation to update such forward-looking

    TUCOWS is a registered trademark of Tucows Inc. or its subsidiaries. All
other trademarks and service marks are the properties of their respective

For further information:

For further information: Lawrence Chamberlain, The Equicom Group for
Tucows Inc., (416) 815-0700 ext. 257, lchamberlain@equicomgroup.com

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