Barrett Xplore Announces $30 Million Financing

January 1, 2004

WOODSTOCK – Barrett Xplore Inc. of Woodstock, N.B. – Canada’s largest and fastest growing wireless broadband service provider – has completed a major financing agreement with Sandler Capital Management, New York, that will revolutionize high-speed Internet access for unserved and underserved markets across Canada.

“This new financing – at $30 million (Canadian), one of the largest private equity placements in the Canadian communications sector in the past several years – will enable Barrett Xplore to continue our growth in high-speed wireless ISP services through aggressive development of our Xplornet brand,” said Bill Barrett, Chairman. “Our focus is to establish Canada’s first wireless broadband network for all homes and businesses in rural, remote and First Nations communities, as well as suburban areas, anywhere in Canada.”

“We are very excited about our partnership with Barrett Xplore,” said David Powers, Managing Director, Sandler Capital Management. “The company has established an impressive track record of bringing consumer-focused technology-related products to underserved markets through its nationwide deployment of satellite video across Canada. In recent years, the company has built on this success by developing an impressive expertise in satellite and fixed wireless broadband service deployment. The new equity financing will facilitate the rollout of the company’s broadband services through its unparalleled dealer network across unserved and underserved communities in Canada. Its unique broadband offering is complemented by an outstanding entrepreneurial team that will make Barrett Xplore an even more significant enterprise in the years to come.”

“Our vision is for Xplornet to be Canada’s leading wireless ISP able to bring high-speed Internet solutions to Canadians no matter where they live,” said Barrett. “To help us meet our goal, we have recently signed a significant equipment contract with Motorola.”

“This multi-million dollar contract is the result of many months of hard work between both our companies. We are excited about being able to supply Barrett Xplore with technology that provides high-speed fixed wireless broadband connectivity,” said Tony Kobrinetz, Vice President and General Manager of Motorola’s Canopy Wireless Broadband Group.

With the new financing, Barrett Xplore will accelerate its rollout of the first fixed wireless high-speed Internet service that provides cost-effective, top quality broadband access to underserved areas nationwide. The company also recently announced the Canadian launch of Tachyon, the first high-speed carrier-grade satellite network designed for small-to-medium sized business and government operations.

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About Barrett Xplore
Barrett Xplore Inc. – through its Xplornet brand – is Canada’s largest and fastest growing wireless broadband service provider. Through a combination of industry leading technology, superior high-speed service delivery and best in class customer service, Xplornet will bring the advantages of broadband connectivity to underserved businesses and residences across Canada, no matter where they are located. Additionally, Barrett Xplore has built a strong platform in the sales and distribution of consumer electronics products and accessories for leading brands such as Star Choice, Philips and Fellowes. Barrett Xplore is a privately held company owned by Barrett Corporation of Woodstock, New Brunswick and Sandler Capital Management, New York. For more information, please visit www.xplornet.com.

About Sandler Capital Management
Sandler Capital Management, a registered Investment Advisor, has managed both hedge funds and private equity funds since 1980 and 1989, respectively. The firm has $1.5 billion in combined assets under management and uninvested commitments (including approximately $150 million of uninvested committed capital for new private equity investments). Sandler’s private equity effort focuses on three core industry sectors: traditional media, telecommunications/data communications, and enterprise communications. Within its areas of industry expertise, Sandler employs a multi-stage investment strategy. Sandler’s investment professionals have over 200 years of combined experience as research analysts, portfolio managers, financial advisors, investment bankers, and private equity investors. For more information on Sandler Capital, please visit http://www.sandlercap.com