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Eagle Broadband Unveils Unique New Product Line Based On Low-Earth-Orbit, Satellite Communications

Press Release From: Eagle Broadband
Posted: Monday, December 9, 2002

Eagle Broadband Inc., a leading supplier of broadband products, services and content, announced today that the company's new proprietary product line based on low-Earth-orbit satellite communications has successfully completed required field testing, passed its initial production design review and is now ready for release to production.

This unique wireless communications system incorporates voice, fax, Internet and text Web-based e-mail and offers, for the first time, true "total" global communications coverage for large numbers of users from non-line-of-sight environments. The system will be marketed under the name Orb'Phone "Exchange" for both aeronautical applications and land-based operations. The "total" global communications coverage of the Orb'Phone "Exchange" is possible because the system uses the Iridium Satellite LLC voice and data network -- a constellation of 66 operational low-Earth-orbit satellites deployed on six polar planes. Commercial aviation benefits include a passenger's ability to place air-to-ground telephone calls and receive ground-to-air telephone calls from virtually anywhere in the world, including over the oceans and the poles.

"This new communications capability has the potential to change communications habits for travelers worldwide," said Dr. H. Dean Cubley, Eagle Broadband's chairman of the board and CEO. "Traditionally, low-Earth-orbit satellite communications systems have only been accessible from "line-of-sight" exterior locations to individuals with specialized satellite telephones. The key to our patent-pending technology is the combination of large numbers of users, using simplified handsets, engaging in simultaneous multi-functional communications from non-line-of-sight locations. That combination has never existed before."

The Orb'Phone "Exchange" is of particular interest to the commercial and military aviation industry since it provides true "all-passenger," gate-to-gate communications capabilities from inside aircraft, without the possibility of interference to aviation navigation equipment -- a problem believed to be inherent in typical ground-based, cellular-type equipment.

The military also has a special interest in the capabilities of the Orb'Phone "Exchange" because it can produce the equivalent of a domestic communications environment in non-line-of-sight situations in any remotely deployed communications center -- anywhere in the world. More importantly, it can be deployed within minutes of arrival without exposing military communications personnel to the external local conditions and in a totally secure mode. The U.S. military is already a major user of Iridium capacity and the Orb'Phone "Exchange" could provide much more effective and widespread usage.

The Orb'Phone "Exchange" is the combined effort of Eagle Broadband and Belgium-based Euro-GSM, Ltd. Eagle Broadband will maintain the intellectual property and manufacturing rights, while Euro-GSM, Ltd. will have exclusive non-U.S. marketing rights based on a minimum volume of annual sales. Euro-GSM, Ltd. has extensive experience in marketing communications products worldwide both to the commercial aviation industry as well as to the military. The company is currently marketing the Orb'Phone "Exchange" worldwide as well as a related two-channel product under the Orb'Phone brand. Within the U.S., the Orb'Phone "Exchange" is being marketed by a U.S.-based marketing organization that includes both Eagle Broadband and Euro-GSM, Ltd. Additional details regarding the Orb'Phone family of products will be provided in subsequent press releases.

About Eagle Broadband

Eagle Broadband Inc. and its subsidiaries are leading suppliers of broadband products, services and content. Eagle also has extensive "last mile" cable and fiber installation capabilities and provides complete IT business integration and enterprise management solutions to Fortune 1000 companies. As the leading provider of Fiber-to-the-Home (FTTH), Eagle provides residential communities with Bundled Digital Services (BDS(SM)) packages that include cable-style television over fiber, local and long-distance telephone service, high-speed broadband Internet connectivity and security monitoring services. The company also markets structured wiring, home automation products, home theater entertainment centers, communication systems and security systems to homebuilders nationwide as well as to its contracted BDS communities. The company is headquartered in League City, Texas, south of Houston, near the NASA Johnson Space Center. Further news updates on Eagle Broadband, its products and services are available at www.eaglebroadband.com, www.broadbandmagic.com, www.atlanticpacific.com, www.etoolz.com and www.ucgi.com.

Forward-looking statements in this release regarding Eagle Broadband Inc. and its subsidiaries are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

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