Multiband Corporation Announces First Quarter Results

MINNEAPOLIS--(BUSINESS WIRE)--Multiband Corporation, (NASDAQ:MBND), the nation’s largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units, announced today results for its first quarter ended March 31, 2008. The Company recorded revenues of $5,714,229, compared to $4,384,955 in the first quarter of 2007. The increase in revenues is partially due to the purchase of a controlling interest in Michigan Microtech, Inc. (MMT) in March, 2008. The 2008 first quarter results include one month of MMT's operations.

Selling, general and administrative expenses decreased 22.3% to $1,855,283 in the quarter ended March 31, 2008, compared to $2,389,256 in the prior year’s quarter. This decrease is primarily due to decreases in payroll and employee expenses, property maintenance expenses, and outside service expenses between the comparable periods. Depreciation and amortization expense decreased 29.7% to $737,707 for the quarter ended March 31, 2008 compared to $1,049,698 in the prior year’s quarter. This decrease in depreciation and amortization is due to the sale of tangible and intangible assets in various states primarily as a result of a lower number of owned subscribers.

EBITDA, a non-GAAP measure, was $253,428 for the 2008 first quarter, compared to $150,763 in the year-earlier period. The Company, in the first quarter of 2008, incurred a loss from operations for its combined operating business segments of $757,005 versus a loss of $1,232,045 during the prior year’s period. The net loss for the 2008 first quarter was $864,398 compared to $1,362,395 in the 2007 first quarter.

“The improved operating results for the 2008 first quarter validate our decisions to acquire MMT and to divest ourselves of underperforming assets in 2007,” said James L. Mandel, CEO of Multiband. “We have completed the integration of MMT and are pleased by the synergies that have been created.

Regarding the completion of the DirecTECH Holding Company (DTHC) merger as a whole, it is now unlikely that the merger as originally structured in the 4^th quarter of 2007 will be completed since Multiband, via the MMT acquisition, has already purchased a portion of DTHC and since a number of conditions precedent to the merger including but not limited to shareholder approval have not taken place. Furthermore, the management of both Multiband and DTHC have concluded that completing the merger as originally structured, which,for accounting purposes, would have received “reverse merger” treatment is simply not in the best interests of the parties. Nonetheless, the parties intend to continue to align their interests where mutually beneficial and to seek modification to the terms of the original transaction to meet each party’s requirements and those of outside parties involved.”

The Company will hold a conference call today at 4:30 p.m. eastern time to discuss the results. Interested parties should dial (888) 838-6026 and use passcode 48070931. There will be a playback available as well. To listen to the playback, please call (800) 642-1687 or (706) 645-9291 and use the same passcode.

NON-GAAP Financial Measures

To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Multiband Corporation attached to this news release and will post to the company’s investor relations web site (www.multiband.com) any reconciliations of differences between non-GAAP financial information that may be required in connection with issuing the company’s quarterly financial results.

The Company, as is common in its industry, uses EBITDA as a measure of performance to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of the Company’s performance based on the Company’s net loss not its cash flows, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principals generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company’s case is the removal of interest, depreciation, amortization, taxes and other non-cash expense.

About Multiband

Multiband Corporation is a leading provider of software and integrated billing services; including video, voice, data and other value-added local services to multiple dwelling units (MDU's) on a single bill, directly and through strategic partnerships. Multiband also is an exclusive DirectTV master system operator. Multiband is headquartered in Minneapolis, MN and has offices across the United States, as well as a state of the art service and support center located in Fargo, ND providing call center capabilities and other value-added services.

Safe Harbor for Forward Looking and Cautionary Statements

Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and Multiband's ability to obtain new contracts and accurately estimate net revenues due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information regarding potential factors that affect Multiband's financial results can be found in Multiband's Registration Statement and in its Reports on Forms 8-K filed with the Securities and Exchange Commission (SEC).

Multiband Corporation
EBITDA Calculation
		March 31, 2008				March 31, 2007
Net Income			($864,398	)			($1,362,395	)
Non Operating gains/Losses (including stock related expense, provisions for reserves and other accrued non-cash expense)		$	211,578			$	258,897
Adjusted Net Income			($652,820	)			($1,103,498	)
Interest Expense		$	100,659			$	178,147
Depreciation, Amortization, and Impairment		$	795,753			$	1,049,698
Federal, State, Local Income and Excise Taxes			9,836			$	26,416
EBITDA		$	253,428			$	150,763