UBN

Urban Communications Inc. (TSX VENTURE:UBN) is pleased to announce that it has
reached agreement with Rogers Communications, one of Canada's leading
telecommunications, entertainment and media providers, to sell a portion of its
fibre optic network in metro Vancouver and Victoria. The assets being sold are
surplus to Urban's requirements and Urban will retain ample network assets to
fully implement its business plan to provide next generation Internet,
telephone, video and data transfer services to commercial, residential and
public sector customers over the 190 km. network.


Under the terms of the agreement, Urban will receive $8 million, which will be
used to retire both secured and unsecured debt, and to provide capital to
generate new subscriber revenue and expand its service offering.


Urban president, Leslie E. Maerov, said: "This transaction dramatically changes
the prospects of the Company. Immediately we will go from having a $6 million
working capital deficiency to a surplus that will enable us to add new
commercial and residential subscribers and build value for our shareholders. We
are very fortunate to have been able to resolve our significant financial issues
for the foreseeable future in one transaction, and are now able to focus on
providing the leading edge services that our fibre optic network enables us to
do."


The transaction is scheduled to complete within 60 days, subject to satisfaction
of certain conditions typical in a transaction of this nature.


In a news release issued February 1, 2011, Urban stated that its position with
respect to the agreement with Persona Communications Inc. to sell all the shares
of subsidiaries, Urban Utility Corp. and Urban Networks Inc., was that the
agreement had not terminated. Since that date Urban has accepted Persona's
position that the agreement has terminated and is no longer in force or effect.
The transaction with Rogers is one of the opportunities authorized by Urban's
shareholders to fulfil its business plan objectives that not only replaces the
Persona transaction in respect of capital funding, but allows Urban to carry on
active business operations with a manageable debt load.


About Urban Communications Inc.

Urban Communications Inc., through its operating subsidiaries, is a
telecommunications company providing a full suite of Internet, voice, video and
broadband application products over its state-of-the-art carrier grade fibre
optic network to commercial, residential and public sector customers in metro
Vancouver and Victoria.


Except for historical information contained herein, the statements in this news
release contain or may contain forward-looking statements, such as statements
regarding Urban Communications Inc.'s future growth and profitability, growth
strategy and anticipated trends in the industries in which Urban Communications
Inc. operates. These forward-looking statements are based on Urban
Communications Inc.'s current expectations and are subject to a number of risks,
uncertainties and assumptions. Should one or more of these risks or
uncertainties materialize, or should the underlying assumptions prove incorrect,
actual results may differ significantly from results expressed or implied in any
forward-looking statements made by Urban Communications Inc. in this news
release. These risks and uncertainties include, among other things, raising
significant investment capital, locating and retaining senior technical and
financial expertise, customer loyalty, demand for services, market competition
and other risks detailed in documents filed with the TSX Venture Exchange or
British Columbia Securities Commission. Urban Communications Inc. does not
undertake any obligation to revise these forward-looking statements to reflect
future events or circumstances.

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