UBN

Urban Communications Inc. (TSX VENTURE: UBN) wishes to provide its shareholders and the investment community with a corporate update since the conclusion of its sale of assets to Rogers Communications Partnership.

On March 10, 2011, the Company announced that it reached agreement with Rogers Communications, one of Canada's leading telecommunications, entertainment and media providers, to sell a portion of its fibre optic network in metro Vancouver and Victoria. The assets being sold are surplus to Urban's requirements and Urban will retain ample network assets to fully implement its business plan to provide next generation Internet, telephone, video and data transfer services to commercial, residential and public sector customers over the network.

This transaction was completed on July 29, 2011, pursuant to which Urban has received $8 million, subject to certain holdbacks to secure post-closing obligations. Proceeds have been used to fully eliminate $5.26 million in secured debt and to bring trade creditor accounts current, with the result that the Company's debt burden has been reduced to a manageable amount and can be met through current operations. The remainder will be used to generate new subscriber revenue and expand Urban's service offering. It is anticipated that this capital will be sufficient for between 6-12 months of operations.

The objective of management during this 6-12 month period is to generate a predictable rate of return on capital, a predictable average revenue per subscriber, achieve profitability on an ongoing basis and establish a growth curve. Concurrently, management will conduct a consistent investor relations program which will be supported by the financial performance achieved during this time, which in turn should stimulate share value, lead to increased market capitalization and stock price stability. This would enable the Company to access additional capital on reasonable terms from conventional sources and through the capital markets.

The first concentrated sales initiatives will commence during September, 2011, and the Company's web site is being updated in order to further facilitate user-generated transactions preparatory to the sales initiatives. The Company is presently concluding access agreements with high profile commercial buildings in downtown Vancouver, and with high density residential complexes throughout the metro Vancouver area. The objective is to be in a position to rapidly expand sales as soon as the new electronic equipment is deployed.

Further news releases will be issued as the new programs are implemented.

Urban Communications Inc., through its operating subsidiaries, is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its state-of-the-art carrier grade fibre optic network to commercial, residential and public sector customers in metro Vancouver and Victoria.

Except for historical information contained herein, the statements in this news release contain or may contain forward-looking statements, such as statements regarding Urban Communications Inc.'s future growth and profitability, growth strategy and anticipated trends in the industries in which Urban Communications Inc. operates. These forward-looking statements are based on Urban Communications Inc.'s current expectations and are subject to a number of risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward-looking statements made by Urban Communications Inc. in this news release. These risks and uncertainties include, among other things, raising significant investment capital, locating and retaining senior technical and financial expertise, customer loyalty, demand for services, market competition and other risks detailed in documents filed with the TSX Venture Exchange or British Columbia Securities Commission. Urban Communications Inc. does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Urban Communications Inc. Leslie E. Maerov President (604) 439-8545 ir@ubn.ca www.ubn.ca