UBN

Urban Communications Inc. (TSX VENTURE:UBN) wishes to provide its shareholders
and the investment community with a corporate update since the conclusion of its
sale of assets to Rogers Communications Partnership.


On March 10, 2011, the Company announced that it 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 network.


This transaction was completed on July 29, 2011, pursuant to which Urban has
received $8 million, subject to certain holdbacks to secure post-closing
obligations. Proceeds have been used to fully eliminate $5.26 million in secured
debt and to bring trade creditor accounts current, with the result that the
Company's debt burden has been reduced to a manageable amount and can be met
through current operations. The remainder will be used to generate new
subscriber revenue and expand Urban's service offering. It is anticipated that
this capital will be sufficient for between 6-12 months of operations.


The objective of management during this 6-12 month period is to generate a
predictable rate of return on capital, a predictable average revenue per
subscriber, achieve profitability on an ongoing basis and establish a growth
curve. Concurrently, management will conduct a consistent investor relations
program which will be supported by the financial performance achieved during
this time, which in turn should stimulate share value, lead to increased market
capitalization and stock price stability. This would enable the Company to
access additional capital on reasonable terms from conventional sources and
through the capital markets.


The first concentrated sales initiatives will commence during September, 2011,
and the Company's web site is being updated in order to further facilitate
user-generated transactions preparatory to the sales initiatives. The Company is
presently concluding access agreements with high profile commercial buildings in
downtown Vancouver, and with high density residential complexes throughout the
metro Vancouver area. The objective is to be in a position to rapidly expand
sales as soon as the new electronic equipment is deployed.


Further news releases will be issued as the new programs are implemented.

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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