ERF Wireless Signs Agreement To Provide $2M Plus Triple-Play Fiber-To-The-Home Broadband Network

League City, TX - ERF Wireless, a provider of enterprise-class wireless and broadband products and services, announced recently that it has entered into an agreement with the El Dorado Golf and Beach Club of San José del Cabo, Mexico, to provide a complete Fiber-to-the-Home (FTTH) voice, video and data system for the entire development that includes the operations of the private club, as well as all of the multi-million dollar homes in this exclusive gated community. The specific financial terms of the agreement were not disclosed, but the $2,000,000-plus initial design and development phase is already underway, with completion projected by the end of the summer of 2007. Contracts for follow-on maintenance and operational support phases are also being developed and are expected to generate additional recurring revenues to ERF Wireless over a multi-year time period.

Dr. H. Dean Cubley, CEO of ERF Wireless, commented, "We started looking at possible international wireless projects last year and found that a number of broadband projects that had wireless content also required the bandwidth of fiber to deliver the full triple-play complement of VoIP telephone, IPTV video and Internet data in the typical FTTH fashion. We realized that in order to capture the wireless component of these jobs, we would have to either partner with other companies to provide the remainder of the overall network or provide the capability ourselves. Since a number of our key personnel have extensive triple-play FTTH experience, we decided to set up a new triple-play FTTH group within ERF Wireless. This group has been fully operational since late last year.

Dr. Cubley went on to note that the addition of triple-play FTTH, including IPTV, is a perfect complement to the company's existing wireless products and should generate exceptional revenue and profit opportunities. "While the El Dorado Golf and Beach Club project is our first win in the FTTH market, there are several similar projects currently in the company's sights," said Dr. Cubley. "We've also partnered with an excellent major subcontractor, X-Analog Communications, which is experienced in international projects and will be providing certain key components of these projects, including the satellite head-end functionality."

Commenting on the significance of this new revenue source, R. Greg Smith, CFO of ERF Wireless, said, "We've made substantial progress recently in executing our business plan and we're excited about the prospects for 2007. Our product and service offerings in the regional banking industry are gaining momentum and our Wireless Internet Service Provider (WISP) recurring revenue base, anchored by the acquisition of our large-footprint WISP in Lubbock, Texas, continues to grow. With the additional diversification and revenue that our El Dorado FTTH project is providing and the expected announcement in the near future of a new major banking project, we're already positioned to achieve a minimum baseline of $5M in revenues for 2007 – a 194% increase over our 2006 revenues of $1.7M. With a baseline expectation of $5M already in work, we're very optimistic about the full-year prospects for 2007. Given the pipeline of opportunities we're developing in the regional banking market, as well as other near-term FTTH projects, we're setting our expectations on $10M-plus over the next twelve months with most of that occurring in 2007."

SOURCE: ERF Wireless Inc.