GigaBeam Affiliate GalactaCOM Announces Acquisition and Investment

GigaBeam Corporation (NASDAQ:GGBM), deploying WiFiber® "wireless fiber optics” technology to economic centers across the globe, announces that its affiliate company, GalactaCOM Corporation, intends to acquire One Velocity, Inc. of Las Vegas, Nevada, and to invest in MetroNext, Inc. of Boston, Massachusetts. Completion of the acquisition of One Velocity and investment in MetroNext is subject to certain conditions, including final approval by both companies’ shareholders and completion of funding of both One Velocity and MetroNext. GigaBeam has entered into an agreement with its affiliate GalactaCOM to provide exclusivity to GalactaCOM for cities and metro areas where GalactaCOM commits to a deployment of a minimum number of GigaBeam WiFiber Links for commercial managed services. In addition, GigaBeam has committed to provide attractive product pricing, first access to new products and preferential service and support. This strategy of a GigaBeam minority-owned affiliate creating next-generation telecommunications carriers, or WiLECs, can build shareholder value for GigaBeam in the future. Management believes it can generate additional revenue for GigaBeam and thereby contribute subsequent additional cash flow to GigaBeam. At the same time, this strategy provides GigaBeam with an equity ownership in GalactaCOM, which is a business focused on building value through the generation of recurring revenues from telecommunications services. This strategy and value to GigaBeam is not expected to result in dilution to GigaBeam’s shareholders. GalactaCOM is a minority-owned affiliate company of GigaBeam with its headquarters to be in Salt Lake City, Utah. GalactaCOM’s business is to operate, invest in and acquire companies that have the potential to be next-generation Wireless Local Exchange Carriers, or WiLECs. The company plans to focus its initial operations on the expansion of One Velocity in Las Vegas and into other cities in the Western United States. GalactaCOM believes that its planned investment in MetroNext will enable MetroNext to expand its operations in Boston and the New England region. GalactaCOM is also involved in active discussions to pursue establishing WiLEC operations in other U.S. cities through investments, joint ventures and acquisitions of operations that have the potential to be transformed into WiLECs. Each major city and metro area of GalactaCOM’s operations is expected to require the deployment of significant numbers of WiFiber links plus other wireless links and ancillary hardware and applications, most of which are anticipated to be provided by GigaBeam. Management believes that a build out of the Las Vegas area and the Boston metro area could require as many as 200 GigaBeam WiFiber links for each city, or a total of 400 links, not including other GigaBeam wireless access links, hardware and applications. GalactaCOM is initially being funded through a private placement financing. Thereafter, additional financings are planned. GalactaCOM intends to use the money raised to support the rapid build out of Las Vegas, Boston and other major cities and metro areas in the U.S. and overseas. One Velocity is a next-generation telecommunications carrier, or WiLEC, with operations in the Las Vegas valley. One Velocity provides services to its customers, utilizing metro Ethernet infrastructure and the standard TCP/IP protocol. The company provides access to its customers at speeds between 10 Mbps to 1 Gbps. One Velocity has established a resilient high capacity Metro Ethernet infrastructure. Comprised of multiple GigaBeam WiFiber links, One Velocity continues its build out of multiple redundant rings around the greater Las Vegas valley. To date, One Velocity has deployed some 33 of GigaBeam’s WiFiber links establishing multiple resilient transport rings throughout the greater Las Vegas metro area. It is believed that more than 200 WiFiber links are required to provide ubiquitous coverage of the Las Vegas valley alone. In just thirteen months of operation following initial deployment of the first WiFiber links, One Velocity has established what we believe is the lowest latency Metro Ethernet network infrastructure in the world, with just 0.56 milliseconds response delay across the entire network, as compared to five milliseconds which is typical of incumbent carriers. One Velocity is able to deploy connectivity in less than a week at extremely competitive rates for equivalent services from other carriers. Management estimates the cost of build out by One Velocity across Las Vegas, including GigaBeam’s hardware, is better than 1/15 the cost of a build out to provide similar services using conventional terrestrial fiber. MetroNext is another next-generation telecommunications carrier, or WiLEC, with operations in Boston, Massachusetts. MetroNext is currently providing the internet backhaul and high-speed network backbone for the City of Boston’s pilot WiFi network utilizing GigaBeam’s WiFiber links. The pilot WiFi project provides for five GigaBeam WiFiber links to be used in lieu of terrestrial fiber to connect the WiFi nodes located throughout the city’s pilot area to a central fiber hub at a Point-of-Presence, or POP, in downtown Boston. This network architecture will enable the city to rapidly deploy a network that is more economical because it will virtually eliminate the need for new terrestrial fiber, which may not be readily available, is more expensive and is time consuming to deploy. MetroNext recently ordered two additional access links from GigaBeam. MetroNext’s focus is the build out of a network infrastructure to support major enterprises and government as either primary or redundant connectivity providing connectivity speeds ranging from 10 Mbps to 1 Gbps. It is anticipated that approximately 200 links will be needed to establish an effective network over the city of Boston and immediately adjacent metro areas. "We believe that this strategy involving GalactaCOM is exciting and is expected to add value for GigaBeam’s shareholders,” said Lou Slaughter, Chairman and CEO of GigaBeam. As important, it realizes a major goal of the Company to have GigaBeam own an equity interest in the potential recurring revenue stream from the deployment of its technology and products to end users. Typically, a majority of prospective telecom customers in the U.S. and worldwide are used to paying for their telecommunications services on a recurring monthly basis. GalactaCOM, as a service company, plans to offer through its subsidiaries and affiliates telecom services at data rates of between 10 Mbps to 1 Gbps, billed monthly, along with other services and applications normally provided by Incumbent Local Exchange Carriers, or ILECs. Unlike Competitive Local Exchange Carriers, or CLECs, GalactaCOM’s operations only require a single Point-of-Presence in any city or metro area and with GigaBeam’s technology, GalactaCOM and its operations are emancipated from depending upon the ILEC for local transport or access. We believe that GigaBeam’s technology along with the 70 GHz and 80 GHz spectrum pioneered by GigaBeam’s founders ushers in a new era of competition and economics for telecommunication.” GalactaCOM is a minority-owned affiliate, not a subsidiary of GigaBeam, and is expected to operate as a separate legal and operating entity from GigaBeam. GigaBeam does not have operating, management or board control of GalactaCOM. Except for its Chairman, Lou Slaughter, who is also Chairman and CEO of GigaBeam, there are no common directors and or management. The management of GalactaCOM is to be comprised of professionals with appropriate telecommunications experience and qualifications with suitable experience involving the deployment and operations of wireless networks. GigaBeam’s WiFiber technology is similar to terrestrial fiber in terms of speed and reliability. WiFiber has a substantial advantage over terrestrial fiber because WiFiber can be more rapidly and economically deployed than terrestrial fiber. In addition terrestrial fiber requires significant regulatory and environmental approvals prior to installation. GigaBeam WiFiber products operate in the 71-76 GHz and 81-86 GHz upper millimeter wave spectrum bands. The Federal Communications Commission and the European Conference of Postal and Telecommunications Administrations (CEPT) and certain other countries for licensed wireless commercial use have authorized this portion of the spectrum. About GigaBeam Corporation GigaBeam’s WiFiber® product ushers in a new era of communications by allowing customers to bypass the restrictive telecom oligopoly and connect directly to any city’s fiber optics hub or Point-of-Presence (POP). The disruptive impact of an easily deployable, low cost alternative to fiber optics cables is difficult to overestimate, especially since WiFiber’s point-to-point high-speed units transmit data via the highest approved radio frequency at speeds equal to 641 T1 lines or 1000 DSL lines. Current GigaBeam partners, customers and end users include Google, Sprint, The Department of Defense, as well as several cities and universities including San Francisco and Boston University. The Company is implementing strategies to expand into major metropolitan areas around the world. GigaBeam’s management team, which pioneered rule making in the 70GHz and 80GHz spectrum, is fully committed to augmenting current revenues through a network of authorized dealers and resellers across North America, South America, Europe, Africa, the Middle East, India and Asia that have local expertise and established contacts. GigaBeam is a company with market disruptive wireless technology, a pioneering management team and a worldwide network dedicated to penetrating major metropolitan markets around the globe. To learn more about GigaBeam’s revolutionary wireless technology, please visit www.gigabeam.com/. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/gigabeam. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/gigabeam/quote.html. To view an investor fact sheet about the Company, visit http://www.trilogy-capital.com/tcp/gigabeam/factsheet.html. Safe Harbor Statement Statements in this press release regarding GigaBeam's products, services, capabilities, performance, opportunities, development and business outlook that are forward looking involve and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond GigaBeam's control and difficult to predict, and could cause actual results to differ materially from these anticipated, expressed or forecasted in the forward-looking statements. Such risks and uncertainties may include, but are not limited to: limited capital resources and continued dependence of our operations on additional financing, limited operating history, difficulties in distinguishing GigaBeam's products and services, ability to manufacture and deploy GigaBeam's products, lack of or delay in market acceptance and fluctuations in customer demand, dependence on a limited number of significant customers, reliance on third-party vendors and strategic partners, availability of raw materials, subassemblies and components, ability to meet future capital requirements on acceptable terms, continuing uncertainty in the telecommunications industry and the global economy, intense competition in the telecommunications equipment industry and resulting impact on pricing and general financial performance, compliance with federal and state regulatory requirements, timing, availability and success of new technology and product introductions and the other factors discussed in GigaBeam's filings with the Securities and Exchange Commission. GigaBeam does not intend to update the statements in this press release to conform to actual results unless required by law.