Chicago joins New York, Boston and Providence as fourth of nine markets to generate Market Cash Flow MIDDLETOWN, R.I., Dec. 17 /PRNewswire-FirstCall/ -- Towerstream (NASDAQ: TWER), a leading fixed WiMAX service provider, announced that it has reached EBITDA profitability in its Chicago market. "We are pleased to report that our Chicago market has reached EBITDA profitability and is now generating Market Cash Flow," stated Joseph Hernon, Chief Financial Officer of Towerstream. "Revenues have more than doubled in the Chicago market during 2008 while direct market expenses have increased only modestly, reflecting the leveraging of our business model. It's important to note that EBITDA profitability and Market Cash Flow are not recognized measures under generally accepted accounting principles but rather represent metrics that we utilize to measure the operational performance of our markets, and their respective ability to contribute cash flow to support centralized operating and corporate overhead costs." "While growth remains strong in our original markets, we continue to see a greater percentage of revenue growth emerging from our expansion markets," said Jeff Thompson, President and CEO of Towerstream. "We are excited at the prospect of bringing additional markets to EBITDA profitability in 2009 as we continue to focus on driving revenues higher and our cash burn lower." Key Operating Metrics and Non-GAAP Financial Measures The terms "EBITDA" and "Market Cash Flow" are measurements used by Towerstream to monitor business performance and are not recognized measures under generally accepted accounting principles, or "GAAP." Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures. Towerstream's method of calculating these measures may differ from other companies and, accordingly, may not be comparable to similar measures presented by other companies. The term "EBITDA" refers to Earnings before interest expense, interest income, income taxes, depreciation, amortization and stock-based compensation. "Market Cash Flow" represents the amount of cash generated in a market after deducting a market's direct operating expenses from that market's revenues. Market Cash Flow does not include (i) centralized operating costs which support all markets collectively or (ii) any network related capital expenditures incurred in a market. Towerstream Service Options Towerstream offers a variety of bandwidth options from T-1 to 1000Mbps as well as service reliability backed by an industry-leading Service Level Agreement (SLA) and a no-risk, money-back guarantee. Towerstream's fixed wireless broadband network delivers high-speed Internet access supporting VoIP, bandwidth on demand, wireless redundancy, VPNs, disaster recovery, bundled data, and video services. Companies utilizing multiple appliances simultaneously, such as streaming video and VoIP, can prioritize their bandwidth to secure mission-critical activities. In addition to Chicago, Towerstream currently serves businesses of all sizes in New York, Seattle, Los Angeles, Boston, San Francisco, Miami, Dallas-Fort Worth and Providence/Newport. Towerstream also offers a Rapid Installation Program which guarantees installation within 48 hours. For a map of the regions covered by Towerstream's service, please visit: http://www.towerstream.com/. For sales inquiries, please call 866-848-5848; or visit: http://www.towerstream.com/index.asp?ref=support. Visit Towerstream CEO Jeff Thompson's blog at: blog.towerstream.com. About Towerstream Corporation Towerstream is a leading fixed WiMAX service provider in the U.S., delivering high-speed Internet access to businesses. Founded in 2000, the Company has established networks in nine markets including New York City, Boston, Los Angeles, Chicago, the San Francisco Bay Area, Miami, Seattle, Dallas-Fort Worth, and the greater Providence area where the Company is based. The Company was the first carrier selected to join the WiMAX Forum to assist leading vendors in establishing industry compliance with international broadband wireless access standards and cross-vendor interoperability. Towerstream was awarded two 2008 Telephony Innovation Awards for Most Innovative Broadband Wireless Service and Most Innovative Small Business Service and the Best of WiMAX World 2008 Service Provider Deployment Award for its New York City network. Safe Harbor 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 thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Consequently, 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 publicly release statements made to reflect events or circumstances after the date hereof. DATASOURCE: Towerstream CONTACT: Amanda Lordy, or Todd Barrish, , both of Dukas Public Relations, +1-212-704-7385; or Investors, Terry McGovern of Vision Advisors, +1-415-902-3001, Web Site: http://www.towerstream.com/ http://www.towerstream.com/index.asp?ref=support

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