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 Since that date Urban has accepted Persona's position that the agreement has terminated and is no longer in force or effect.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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Urban Communications Inc. Leslie E. Maerov President (604) 439-8545 ir@ubn.ca www.ubn.ca