Eagle Broadband Announces Sale of its SatMAX Business

Eagle Broadband, Inc. (OTCBB: EAGB), a leading national provider of IP products and services, announced today that the company completed the sale of its SatMAX satellite telephony repeater business pursuant to an Asset Purchase Agreement entered into with Security Financing Services, Inc. (“SCYF”). Under the agreement, SCYF purchased all of Eagle’s assets related to its SatMAX business for a purchase price of $100,000 plus a three year earn-out provision providing for a percentage payment of gross profits during that period.

“Eagle continues to narrow its focus on its core business of providing Internet Protocol related products and services. Unfortunately, SatMAX no longer fit into our refocused core business,” said Brian Morrow, Chief Operating Officer of Eagle Broadband, Inc. “The sale of the SatMAX business will allow us to channel more of our time and energies into the targeted strategies at Eagle.”

“We are extremely excited about the acquisition of SatMAX,” said Eric Flores, President of SCYF Satellite Communications Division. “The SatMAX product line will become the anchor of Security Financing Services’ exciting new value-creation strategies,” he continued.

About Eagle Broadband, Inc.

Eagle Broadband is a national provider of IP products and services through its two divisions:
IPTV – IPTVComplete(TM) provides 250+ channels of popular entertainment programming, using Eagle’s high-definition set-top boxes which also sell strongly into hospitality markets.
IT Services – is a full-service integrator offering a complete range of network technology products including commercial two-way VSAT satellite dish installation services, VoIP, remote network management, network implementation services and IT project management services.

For more information on Eagle Broadband, visit www.eaglebroadband.com

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For more information on Security Financing Services, visit www.securityfinserv.com and http://finance.yahoo.com/q?s=SCYF.PK

Investors are cautioned that forward-looking statements contained in this release involve risks and uncertainties, which are set forth in detail in the company’s periodic reports filed with the Securities and Exchange Commission.

Contacts

CWR & Partners
Kelly Cinelli or Veronica Welch, 508-222-4802