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MDU Communications International, Inc.: MDU Communications Announces Stock Repurchase Plan

^{Published on 2008-12-24 06:54:07, Last Modified on 2008-12-24 06:55:02 - Market Wire}
 

TOTOWA, NEW JERSEY--(Marketwire - Dec. 24, 2008) - MDU Communications International, Inc. (OTCBB:MDTV) ("Company"), a leading end-to-end provider of DIRECTV^® digital satellite television programming and broadband Internet services to the United States residential multi-dwelling unit market, today announces that its Board of Directors has approved a stock repurchase plan authorizing the Company to repurchase shares of its common stock.

The Company is now authorized to repurchase shares of its common stock, from time-to-time over the next twelve month period (subject to securities laws and other legal requirements), in open market transactions, up to an aggregate value of $1.0 million. This authorization does not obligate the Company to acquire any common stock, or any particular amount of common stock, or at any particular price. The specific timing and amount of the repurchase(s) will vary based on market conditions and other factors. The stock repurchase plan may be suspended, modified, extended or terminated by the Board of Directors at any time.

The Company believes it has adequate liquidity to initiate a repurchase plan at this time due to the information contained in the Current Report on Form 8-K that the Company filed on December 19, 2008 disclosing that it had received collective total proceeds from recent asset sales of $8,329,500, resulting in gains to the Company of $7,148,346. The Company noted that additional asset sales may take place, but made no representation or claim as to the likelihood of the closing of such additional sales, when (if ever), and in what amounts. It also stated that these proceeds would be used by the Company to reduce the outstanding balance on the credit facility with FCC, LLC, d/b/a First Capital and Full Circle Funding LP, as well as other corporate purposes.

Sheldon Nelson, President and Chief Executive Officer of MDU Communications commented, "We have been disappointed by our stock price over the past fiscal year considering the significant improvement in our financial results. Additionally, in light of our recent per subscriber values, we believe the Company's stock price has become significantly undervalued. Accordingly, we believe repurchasing our shares of common stock at these prices represents an exceptional investment opportunity."

About MDU: MDU Communications International, Inc. (OTCBB:MDTV), through its wholly owned subsidiary MDU Communications (USA) Inc., is a leading full service provider of premium communication/information services, including DIRECTV^® digital satellite television, private cable television services and high-speed (broadband) Internet access, exclusively to the United States multi-dwelling unit (MDU) marketplace - estimated to include 26 million residences. The Company is committed to delivering state-of-the-art and next generation interactive communication service solutions to MDU property owners and residents. For additional information, please see [ www.mduc.com ] or contact Investor Relations.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements relating to the equity securities of the Company. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements, including, but not limited to, fluctuations in the Company's stock price and volume, operating results and operating plans, closing of certain asset sales, legal regulation, market forces and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's 10-K for year ended September 30, 2008, and incorporated herein by reference.

The Company's filings, including current financial reports, can be accessed through the EDGAR database at [ www.sec.gov ].