Tucows Commences Third Dutch Auction Tender Offer to Repurchase up to 5 Million Common Shares

    TORONTO, Aug. 12 /CNW/ - Tucows Inc. (NYSE AMEX:  TCX, TSX:TC) a global
provider of domain names, email and other Internet services, announced today
that it intends to commence a third modified "Dutch auction" tender offer to
repurchase up to 5,000,000 shares of its common stock, representing
approximately 7.4% of the Tucows' outstanding shares. The tender offer is
expected to commence on Thursday, August 20, 2009 and to expire, unless
extended, at 5:00 P.M., New York City Time, on Friday, September 18, 2009.
    Under the tender offer, shareholders will have the opportunity to tender
some or all of their shares at a price within an expected range of $0.40 to
$0.60 per share, which price range may be modified by Tucows prior to the
commencement of the offer. On August 11, 2009, the closing sale price on the
NYSE Amex for Tucows' common stock was $0.43. 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. Tucows' board of directors and its executive
officers do not intend to participate in this tender offer.
    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.
    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 should read carefully the
offer to purchase and related materials when they are available because they
contain important information. At the time the offer is commenced, Tucows will
file tender offer materials with the SEC, including the offer to purchase, the
related letter of transmittal and certain other offer documents. The tender
offer materials will contain important information which should be read
carefully before any decision is made with respect to the tender offer. The
offer to purchase, the related letter of transmittal and certain other offer
documents will be made available to all Tucows shareholders at no expense to
them. The tender offer materials will be available for free at the SEC's
website at http://www.sec.gov. In addition, Tucows' shareholders will be able
to obtain a free copy of these documents from the information agent for the
tender offer by mailing requests for such materials to StockTrans, Inc., Attn:
Re-Organization Dept., 44 West Lancaster Avenue, Ardmore, PA 19003 or calling
(800) 733-1121.
    In addition to the offer to purchase, the related letter of transmittal
and certain other offer documents, Tucows files annual, quarterly and special
reports, proxy statements and other information with the SEC. You may read and
copy any reports, statements or other information filed by Tucows at the SEC
public reference room at 100 F. Street, N.W., Washington, DC 20549. Please
call the SEC at 1-888-SEC-0330 for further information on the public reference
room. Tucows' filings with the SEC are also available to the public from
commercial document-retrieval services and at the website maintained by the
SEC at http://www.sec.gov.

    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 and our long-term objectives. 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 statements.
    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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