KeyOn Communications (OTC:KEYO) Completes Twelth Acquisition

KeyOn Communications Holdings (OTC: KEYO) announced today it has completed its acquisition of substantially all of the wireless broadband assets of Wells Rural Electric Company (WREC). As I write, shares of KeyOn are down 6 percent at $0.30 per share on light volume of 13,000 shares.

The WREC acquisition has strategic importance to KeyOn as the network footprint covers markets such as Wells and West Wendover, Nevada. The network serving these communities will interconnect with KeyOn’s planned network in rural Nevada funded by the American Recovery and Reinvestment Act’s stimulus program. In September 2010, KeyOn received a $10.2 million stimulus award to provide 4G, last-mile wireless broadband access and VoIP services to approximately 93,000 people, 5,522 businesses and 849 critical community facilities throughout Nevada.

Jonathan Snyder, KeyOn’s President and Chief Executive Officer, stated, “The purchase of the wireless broadband business from Wells Rural Electric Company adds a well architected network with robust capacity and a stable subscriber base. As a result of our planned stimulus-funded network construction, the residents of the areas covered by WREC will be able to access up to 8 MBps speeds with our 4G wireless network and these communities will benefit from job opportunities and economic development.”

WREC represents the eighth acquisition of network assets and subscribers since the inception of Rural UniFi in the fourth quarter of 2009 and is the Company’s twelfth acquisition overall. It is expected that this transaction will add positive operating cash flow in its first month of operations under KeyOn’s ownership because of its assimilation into KeyOn’s centralized network and customer operations center.

KeyOn is a provider of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 12 Western and Midwestern states.

More information on KeyOn can be found at http://www.keyon.com.

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