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Sunrise Broadband Proposes to Merge With Y-Tel International

Posted on: Tuesday, 18 July 2006, 09:00 CDT

Sunrise Broadband Group, Inc. (PINKSHEETS: SBBD), a Nevada corporation headquartered in Broomfield, Colorado and a broadband services provider, today announced it has executed an agreement in principle to merge into Y-Tel International, Inc. (OTCBB: YTLI), a Baton Rouge-based provider of telecommunications, VoIP and Wi-Fi services and devices. The proposed Merger has been approved by both company's board of directors and is contingent upon majority shareholder consent and completion of a Securities and Exchange Commission ("SEC") registration statement. In the merger, the shareholders of Sunrise will be issued one share of Y-Tel stock for each surrendered share of Sunrise stock.

Sunrise Broadband Group is a broadband services provider whose business model is focused on acquiring rural cable systems in select geographic areas of the United States. As part of the terms of this merger, the surviving corporation, Y-Tel International will be renamed; Sunrise Broadband Holdings, Inc. ("SBH") and will change its principal place of business to that of Sunrise Broadband, in Broomfield, Colorado. With the completion of the merger, Sunrise Broadband Group's President and Chief Executive Officer, Calvin D. Smiley, will assume the role of Chairman and Chief Executive Officer with John Conroy, Y-Tel's acting CEO, becoming EVP of Strategic Development and a director of the merged companies.

"The synergies between our mutual companies will enable the combined company to maximize shareholder value and deliver competitive broadband services to the end users. The Y-Tel wireless technology will enable Sunrise to position hybrid technology to optimize digital video, high-speed Internet and voice to current and future customers in rural America," said John Conroy, Chairman and CEO of Y-Tel International.

On June 15, 2006, Sunrise announced it has secured a commitment for an equity line of credit up to $25 million from Dutchess Advisors, LLC based in Boston Massachusetts. "The commitment requires that Sunrise Broadband becomes a fully reporting company as defined by the SEC and list on the National Association of Securities Dealers, Inc. Over-the-Counter Bulletin Board," said Calvin D. Smiley, Sr. CEO of Sunrise Broadband. "The opportunity with Y-Tel International provides Sunrise Broadband Group the opportunity to fulfill both criteria. As well, Y-Tel provides Sunrise with a critical ingredient to its business plan, wireless technology. We will combine this technology with fiber to deliver a bundled solution to the end user."

About Sunrise Broadband Group, Inc.

Headquartered in Broomfield, Colorado, Sunrise Broadband Group, Inc. is a developmental stage company focused on delivering broadband solutions to rural communities through strategic acquisitions and mergers. The Company has closed on its first cable television system and has selected additional strategic cable television systems all to be upgraded and consolidated; resulting in increased bandwidth, improved customer service, and improved reliability.

Sunrise Broadband is focused on delivering a true "triple-play" of Voice Over Internet Protocol (VoIP), Video-on-Demand (VoD), High-Speed Data services and other related broadband solutions. In completion of our goals the Company has executed a wholesale agreement providing a turn-key solution for offering VoIP and High-speed services under the Company's private label "Sunrise Phone." This proprietary cutting-edge technology will deliver low-cost and feature-rich broadband services to small and medium sized businesses and residential customers in the very near future. Sunrise Phone subscribers will have access to all standard telephone features with unlimited local and long distance calling anywhere in the US & Canada for a flat monthly rate. Additionally, high-speed Internet services including DSL, T1 and fiber optic connectivity will be offered.

Company information distributed through the Market Access Program is based upon information that Standard & Poor's considers being reliable, but neither Standard & Poor's nor its affiliates warrant its completeness or accuracy, and it should not be relied upon as such. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.

About Y-Tel International

Y-Tel is in the telecommunications industry and is located in Baton Rouge, Louisiana with its Telecom HUB located in Dallas, Texas. Y-Tel is working toward becoming one of the leading providers of Wi-Fi Internet Services and VoIP calling solutions.

To learn more visit http://www.ytelwifi.com

Safe Harbor Statement:

This news release contains forward-looking statements related to future growth and earnings opportunities. Such statements are based upon certain assumptions and assessments made by management of both companies in light of current conditions, expected future developments and other factors it believes to be appropriate. Actual results may differ as a result of factors over which the companies have no control.

 Contact: Stuart T. Smith SmallCapVoice.com 512-267-2430 info@Smallcapvoice.com

SOURCE: Sunrise Broadband Group, Inc.

Source: MARKET WIRE

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