Multiband Announces Record 2008 Fourth Quarter; Year End Results

--4th Q EBITDA improves to approximately $2.1 Million;

--Record Fiscal Year Revenues/ EBITDA of $43 Million/6.2 Million

Multiband Corporation, (NASDAQ:MBND), the nation's largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units (MDU's), announced today record fourth quarter and full year financial results for the period ended December 31, 2008.

4Q08: The Company generated record revenues of $14,126,000, an increase of 14.5% sequentially from $12,340,000 in 3Q08 and 352% year-over-year from $3,125,000 in 4Q07. Revenues increased as a result of strong organic growth and the acquisition of Michigan MicroTech, Inc. (MMT), which closed in March 2008. Multiband's MDU and MCS operating business segments also posted improved operating results versus the prior year period. Multiband's HSP (home service provider) business segment performed strongly although there is no prior year comparison since the segment began in 2008. The Company generated record net income of $842,225, or approximately $0.09 per share, a substantial improvement from a net loss of ($1,527,000), or ($0.23) per share, in 4Q07. The fourth quarter of 2008 represented the Company's third consecutive quarter of generating positive net income.

EBITDA, a non-GAAP measure, was $2,054,716 in 4Q08, an improvement of over $2.3 million compared to the 2007 fourth quarter. Selling, general and administrative expenses were $3,326,506, or 23.5% of revenue, compared to $1,829,947, or 58.6% of revenue, for the same three-month period a year ago, illustrating the operating leverage inherent in Multiband's business as it grows its operations in the HSP and MDU segments. Depreciation and amortization in 4Q08 was $562,399 compared to $808,922 in the year ago period, driven by sales of non-core subscriber operations and assets.

Full Year 2008: Revenues for the twelve month period ended December 31, 2008 increased 185% year-over-year to $42,986,513 from $15,085,604 for the same period in 2007. This overall increase in revenues is primarily due to organic growth and the purchase of MMT in March 2008. Revenue was adversely impacted by the sale of approximately 13,000 subscribers which occurred throughout the first six months of 2007 in efforts to strategically sell unprofitable owned assets.

EBITDA, a non-GAAP measure, was $6,172,922 million for the year, an improvement of $6.6 million compared to fiscal 2007 when the Company had negative EBITDA of ($397,554). Income from operations was $903,037 during the year of 2008, compared to a loss of ($5,766,115) during 2007. Net Income from Continuing Operations totaled $944,931 or .10 per share. The Earnings per Share amount does not include non-cash accounting charges associated with the conversion of preferred stock in the first quarter of 2008.

Commentary: "This quarter's record results reflect a number of powerful trends, including the growing trend of consumers to increasingly stay at home due to economic conditions, which has driven sharp increases in subscribers at our primary customer DIRECTV. Further, we proved our ability to seamlessly integrate the operations of MMT, and organically grow high margin revenue without a corresponding increase in operating expenses," said James L. Mandel, CEO of Multiband. "Our improved financial results demonstrate the benefits of the MMT acquisition and the synergies between the companies.

"With the entire DTHC organization now under our control, we anticipate continued strong organic revenue. We believe the challenging economic environment will continue to drive consumers to seek cost-effective entertainment alternatives offered by companies such as DIRECTV, its channel partners, and ourselves. Nearly all other aspects of operations are experiencing strong organic growth as well, as illustrated by a recently signed large call center contract to support the operations of a reseller of DIRECTV services. DIRECTV's historical strong performance and market share gains at the expense of DISH Network and cable operators, combined with pent-up demand for cost-effective triple-play solutions across the MDU landscape, are translating into strong momentum across our business lines."

DirecTECH Acquisition Completed: On January 1, 2009 Multiband announced that it had acquired 80% of the issued and outstanding shares of common stock of all DTHC operating subsidiaries (except for MMT, of which Multiband previously purchased 51% control in 1Q08, with 29% additional control purchased on January 1, 2009). The closing on the balance of the acquisition is anticipated to occur on or before December 31, 2009. Multiband will consolidate the operating results of all of the former DTHC subsidiaries with its operating results during 2009. Multiband shall purchase the remaining 20% of the issued and outstanding shares of common stock of all DTHC operating subsidiaries by December 31, 2009, subject to obtaining Multiband shareholder approval. The consideration for the 20% purchase will be $10 million worth of Multiband Series J Preferred Stock, whose issuance will require Multiband shareholder approval.

Guidance: Due to stronger than expected performance in our various operating segments, Multiband is raising the range of revenue guidance for 2009. Specifically, management projects 2009 revenues of between $210 - 220 million, up from prior guidance of $200 million.

Conference Call: The Company will hold a conference call today to discuss the results. The conference call will take place at 12:00 p.m. eastern time. Interested parties should dial 877-741-4248 and use pass code 5420074. There will be a playback available for a limited period of time on the Company's website at www.multibandusa.com.

Multiband EBITDA for the fiscal quarter ending on 12-31-2008 and
2007
                                                               Three                               Three                Year ended           Year ended
                                                               Months                              Months               12/31/07             12/31/08
                                                               ended                               ended
                                                               12/31/2008                          12/31/2007
Net Income (Quarter)                                           $                842,225                ($1,527,635 )        ($6,088,353 )    $     944,931
Non Operating
Gains/Losses (including stock related expense, provisions for  $                58,956             $   3346,885         $   1,487,471        $     268,231
reserves and other accrued non-cash expense)
Adjusted Net Income                                            $                901,181                ($1,180,750 )        ($4,600,882 )    $     1,213,162
(Sum of (i)minus (ii))
Interest Expense                                               $                142,804            $   69,335           $   499,599          $     657,289
Depreciation and Amortization also includes Impairment         $                629,156            $   808,922          $   3,623,903        $     3,157,687
Federal, State, and Local Income and Excise Taxes              $                381,575            $   10,851           $   79,826           $     1,144,784
EBITDA                                                         $                2,054,716              ($291,642   )        ($397,554   )    $     6,172,922

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 reconciliation 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 principles 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 Corporation: Multiband Corporation (www.multibandusa.com) is the largest DIRECTV installation provider and an enabler of video and triple-play solutions to the MDU segment. The company employs over 3,700 professionals, has offices in 35 states, and serves customers in all 48 of the lower continental U.S.

SOURCE: Multiband Corporation

Multiband Corporation 
James Mandel, 763-504-3000 
CEO