KeyOn Closes Acquisition of Wireless Broadband Assets in East Central Texas; Revenues

LAS VEGAS - KeyOn Communications Holdings, Inc., one of the largest providers of wireless broadband, satellite video and voice over Internet protocol services in the United States, announced the closing of the acquisition of certain wireless broadband networks and subscribers in East Central Texas from ERF Wireless, Inc..

The acquired networks have demonstrated historically consistent earnings and currently generate positive EBITDA. It is expected that KeyOn will receive the benefits of the EBITDA on the spur of the moment. KeyOn currently operates networks in Texas next to some of the networks being acquired and expects to expand its presence around those networks.

Jonathan Snyder, KeyOn's President and Chief Executive Officer, stated, "The acquisition of these Texas networks represent a meaningful purchase in terms of subscribers, earnings and EBITDA. With this acquisition, we will not only expand our footprint in Texas however will as well be strengthening our foundation for future growth and acquisitions in this region. Taking everything into account, with cost savings, and the expanded EBITDA that will result due to our overall operational scale, we believe this represents an exceptionally high return on invested capital, then above our internal benchmark."

The ninth acquisition of network assets

This acquisition will represent the ninth acquisition of network assets and subscribers since the inception of Rural UniFi in the fourth quarter of 2009 and is the Company's thirteenth acquisition overall.

This press release includes disclosure regarding "EBITDA" which is a measurement used by KeyOn Communications to monitor business performance and is not recognized pursuant to this agreement GAAP. Consequently, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

The meaning of applicable federal securities laws

Safe Harbor Statement Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are in doing so prospective. Forward-looking statements may include, without limitation, the company's expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company's control, which could cause actual results to differ materially from such statements, including, without limitation, the company's ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company's reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company's reliance on third party sales representatives and new and more burdensome telecommunications' regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company's filings with the Securities and Exchange Commission, including the information pursuant to this agreement the headings "Risk Factors" and "Forward-Looking Statements" in our Form 10-K/A filed on December 1, 2010. Accordingly, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.