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Sunrise Broadband, Y-Tel International Merger on Track

Posted on: Thursday, 7 September 2006, 09:20 CDT

Sunrise Broadband Group (Pink Sheets:SBBD) announced today that the proposed merger with Y-Tel International, Inc. (OTCBB:YTLI) is on track. On July 18, 2006 Sunrise announced it had executed a definitive agreement to merge into Y-Tel International. Upon completion of the merger the surviving company Y-Tel would be renamed Sunrise Broadband Holdings, Inc.

Expected Timeline

Management has been diligently working to complete the registration and related audits. The audit of the parent company is completed and now the focus is on our subsidiaries. Once the registration is submitted to the SEC, the company is forecasting to complete the merger before the end of the year.

Cash Flow Requirements and Expected Timeline

Sunrise has secured an Equity Line Funding agreement with Dutchess Private Equity Funds, LP for up to $25 million to be drawn down at the Company's discretion. The funds will provide the capital needed to fully execute the new business model of the merged companies, including the acquisition of other companies.

Benefits of the Merger

The secured Equity Line Funding agreement requires that Sunrise become fully reporting. To this end management, with the assistance of its legal and financial advisors, have determined the Y-Tel merger would complete this requirement and accelerate the availability of funds. Armed with the capital to execute the merged business model, the new Company, Sunrise Broadband Holdings, will be positioned to deploy a full array of bundled products and services to current and new customers. Initially, the Company will rollout WiFi networks in rural markets where Sunrise currently or plans to have a cable presence. By adding a wireless network to the service area, the new Company will enhance its product offering by adding wireless broadband internet services, WiFi phones, and ATA devices.

The merger will enable the Company to become more streamlined to provide wireless, broadband, video, voice and data services over an integrated wireless and fiber Internet Protocol platform, improve customer support, speed and delivery of advanced services. Customers, both consumers and business, will stand to benefit from the improved technology and a more reliable, robust network infrastructure.

The combined company will have greater financial, technical, research and development, and marketing resources to better serve residential and business customers.

New Company Leadership

Calvin D. Smiley, Sr., Sunrise Broadband Group's Chairman and CEO, will retain the same position with Sunrise Broadband Holdings Inc. Y-Tel International's Chairman and CEO will assume the role of Executive Vice President of Strategic Development and will serve as a director. The new company will have five directors.

For additional information please go to www.sbginc.tv FAQs page.

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 affiliate's 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.

Source: Business Wire

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