ERF Wireless to Receive $3 Million Cash in Non-Core Asset Sale

ERF Wireless, a leading provider of enterprise-class wireless broadband products and services, announced today that it has entered into a Definitive Asset Purchase Agreement with KeyOn Communications Holdings Inc. to sell two of its non-core WISP/wireless networks for a total consideration of $3 million in cash and 100,000 shares of KeyOn common stock. Additional details of the agreement were not announced. The two ERF Wireless networks being sold are the Central Texas network west of Austin and the smaller North Texas network in Granbury. The sale is expected to close within the then ten days.

Dr. H. Dean Cubley commented, "This sale of a limited portion of our non-core and non-oil and gas related networks provides ERF Wireless the possibility to convert our investment in these assets and operations into cash at a time when we have tremendous potential for additional high-margin oil and gas revenue being presented to us on an nearly daily basis. I believe that having the cash liquidity to quickly take advantage of these new opportunities is of the highest priority to ERF Wireless and its stockholders at this stage in time. Any recurring WISP revenue that we forego with this sale will quickly be recovered by adding new oil and gas revenue in our Energy Broadband subsidiary at many times the operating margins."

John Nagel, CEO of Energy Broadband, commented, "Energy Broadband began a new direct marketing program promoting our wireless broadband services to the oil and gas industry last year in an effort to accelerate the growth of our customer base. That program has been successful and has attracted many new clients and created additional service opportunities. With the additional capital, we'll have the ability to take advantage of many of these opportunities and quickly expand our leadership in the delivery of terrestrial wireless broadband to the North American oil and gas industry."