LAS VEGAS, NV (August 15, 2011) — KeyOn Communications Holdings, Inc. (OTCBB: KEYO) (“KeyOn” or the “Company”), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported its financial results for the second quarter ended June 30, 2011. Additionally, as of June 1, 2011, KeyOn provides VoIP services directly utilizing its own network infrastructure acquired with the assets purchased from entities doing business as CommX.

Management Comments
Jonathan Snyder, President and CEO of KeyOn Communications, commented, “With these results, KeyOn is proving that its strategy of generating economies scale through acquisitions continues to be effective. As an example, our primary operating expense categories are all down as a percentage of revenues from the previous year’s quarter, except for depreciation and installation expense which have increased due to acquisitions and a 54% increase in organic new customer sales. We realized solid growth over the prior year’s quarter and our EBITDA loss continues to be reduced due to our growing scale – in fact, our EBITDA loss for the month of June was less than $75,000. Management believes that it could immediately achieve positive EBITDA at the expense of growth, but, as evidenced by our second quarter results, our strategy proves we can generate both strong revenue growth and operating margins.”

Snyder continued, “Our second quarter results include a full quarter of contribution from the acquisitions we completed in the first quarter, specifically the wireless assets of Wells Rural Electric Company (WREC) and ERF’s Central and North Central Texas areas. In June, we acquired the voice-over-IP (VoIP) assets of entities doing business as CommX which, in addition to sales through existing and new wholesale partners located throughout the U.S., provides us with the ability to sell VoIP services to our 20,000+ subscribers using our own Broadsoft-based (NASDAQ: BSFT) softswitch. On a pro forma basis including the CommX acquisition, second quarter revenues would have grown 94% over the prior year and 42% on a sequential basis. And, for the six months ended June 30, 2011, pro forma for all acquisitions, revenues would have been $6.8 million, or a $13.6 million annual run rate. As important, Adjusted EBITDA loss for the second quarter continues to narrow over the prior year’s quarter and sequentially, improving 40% and 24%, respectively.”

2011 Second Quarter Consolidated Results
During the three month period ended June 30, 2011, we recognized revenues of $2,839,315, as compared to revenues of $1,728,849 during the three month period ended June 30, 2010, representing an increase of approximately 64%. Our increased revenue was a result of the subscriber growth from the completion of six acquisitions during the last two quarters of the year ended December 31, 2010 and the six month period ended June 30, 2011, as well as the positive effects of the increase in organic marketing efforts during that second half of 2010 and through 2011.

Operating expenses, which consist of payroll, bonuses, taxes and stock based compensation, depreciation and amortization, other general and administrative costs, network operating costs, marketing and advertising, installation expense, and professional fees totaled $4,124,102 for the three month period ended June 30, 2011, as compared to $3,503,577 for the three month period ended June 30, 2010, representing an increase of approximately $620,000, or 17%. The increase was due primarily to the additional depreciation and amortization expense of approximately $438,000, or 71%, of the total increase.

By removing non-cash stock compensation expense, our operating loss margin improved by 18% percent from a total normalized operating loss of $1,261,792, or an operating loss margin of 44% for the three month period ended June 30, 2011 as compared to a loss of $1,071,244, or an operating loss margin of 62% for the three month period ended June 30, 2010.

We had a net loss of $1,284,693 for the three month period ended June 30, 2011, as compared to a net income of $675,741 for the three month period ended June 30, 2010, representing a decrease of $1,959,434. The primary reasons for the decrease were non-cash effects of the derivative accounting of the long term convertible note of $2,680,051 and non-cash stock compensation expense for personnel and professional fees of $703,484. If the effect of the conversion of the Note and the non-cash compensation expenses are removed our net loss would be $1,263,441 for the three months ended June 30, 2011, as compared to a net loss of 1,300,826 for the three months ended June 30, 2010, an improvement of 3%.

Adjusted EBITDA for the second quarter ended June 30, 2011, was negative $403,975 compared to a negative $673,775 in the second quarter of 2010, an improvement of 40%.

Outlook
Jonathan Snyder continued, “We are extremely excited about the prospects of integrating our VoIP services into our broadband offering as believe we can generate meaningful revenue and EBITDA growth. We are also very active in our acquisitions efforts and expect to continue to increase our subscriber base and value-added services through the remainder of 2011, including the receipt of stimulus funds for our Nevada award. Finally, KeyOn is poised to generate positive Adjusted EBITDA which we expect to report in the 3rd quarter of this year.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTCBB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. KeyOn also offers hosted VoIP services to small to mid-sized businesses as well as to our residential customers through wholesale partners and retail direct. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services. The company has and intends to continue to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, broadband stimulus application expenses and other non-recurring expenses, including the duplication of accounting personnel, temporary employees, and travel and moving expenses in connection with the relocation of our accounting department. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

The Non-GAAP measure, Adjusted EBITDA, including non-recurring expenses, has been reconciled to Net Income/(Loss) as follows:

KeyOn Communications 2011 Q2 Results - 1 - Click the image for a larger view

KeyOn Communications 2011 Q2 Results - 2 - Click the image for a larger view

Safe Harbor Statement
This press release contains forward-looking statements, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, maintain the health of the Company’s networks to minimize losses to the Company’s subscriber base, the Company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the Company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on March 30, 2011. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc
Jonathan Snyder, 702-403-1246
jon.snyder@keyon.com
www.keyon.com

LAS VEGAS, NV (June 28, 2011) — KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services through its operating subsidiary, CommX, in the United States announced today that the Company raised $2.6 million in a secured convertible note. The note is convertible into additional shares of the Company’s preferred stock at a conversion price of $0.75, the average conversion price of a $15 million convertible note that was previously converted into preferred stock on March 11, 2011 by an entity controlled by Dr. Soon-Shiong. The $2.6 million note is held by California Equity, LLC, an entity also controlled by Dr. Patrick Soon-Shiong.

Dr. Soon-Shiong, having built and sold two multi-billion dollar pharmaceutical companies in the past few years including Abraxis BioScience to Celgene Corporation (NASDAQ: CELG), is a physician, scientist and philanthropist who has made clear his intention to develop a comprehensive “health information highway system” throughout the United States. KeyOn’s platform provides a footprint in underserved rural communities facilitating critical services, including extending the reach of quality healthcare delivery to rural hospitals. KeyOn’s Broadband Initiatives Program (BIP) award will directly fund a high-capacity, microwave ring and 4G “last mile” network in Nevada enabling a broad set of services to nearly 1,000 critical community facilities across government, public safety, education and healthcare institutions.

“KeyOn will provide a vital piece of this information highway system,” said Dr. Patrick Soon-Shiong. “Connecting rural hospitals and clinics across a eleven states with a high-capacity broadband service will enable us to complete the ‘last mile’ of a healthcare information infrastructure for the whole nation.”

On June 14, 2011, KeyOn announced that it acquired a BroadSoft, Inc.-based VoIP business with its purchase of entities doing business as CommX. The strategic acquisition of CommX provides KeyOn with a vertically integrated platform to upsell VoIP services to its more than 20,000 wireless broadband subscribers. It is expected that CommX will add over $3 million in annualized revenues and for the first quarter ended March 31, 2011, on a pro forma basis after giving effect to the two acquisitions completed in the quarter and CommX’s results for the quarter, KeyOn would have revenues of approximately $3.4 million and a narrowed Adjusted EBITDA loss of approximately $240,000.

Jonathan Snyder, KeyOn’s Chief Executive Officer, commented, “We are pleased that Dr. Soon-Shiong continues to support our growth plans consisting of wireless broadband acquisitions and organic growth of our subscriber base across 11 states; and, now our ownership of an intelligent, VoIP softswitch which creates a vertically-integrated platform of high-speed data and voice.”

Snyder continued, “KeyOn has grown significantly over the past year – our pro forma first quarter revenues, including the results of CommX, grew over 100% over our actual results from the previous year’s quarter, or, on an annualized basis, approximately $6.4 million to $13.8 million. Not only are we growing, but our Adjusted EBITDA loss continues to shrink. In addition, we expect to begin drawing down on our $10.2 million award from the Rural Utilities Service, of which approximately $7.1 million is a grant and $3.1 million is a long-term loan, in connection with KeyOn’s Broadband Initiatives Program award for the build-out of 4G wireless networks throughout rural Nevada.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and VoIP services, through its acquisition of entities doing business as CommX, in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services. The Company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com and http://www.commxinc.com. Companies interested in participating in Rural UniFi can visit www.keyon.com.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, broadband stimulus application expenses and other non-recurring expenses, including the duplication of accounting personnel, temporary employees, and travel and moving expenses in connection with the relocation of our accounting department. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
This press release contains forward-looking statements, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, maintain the health of the Company’s networks to minimize losses to the Company’s subscriber base, the Company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the Company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on March 30, 2011. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Jonathan Snyder, CEO
402-998-4000
jon.snyder@keyon.com

LAS VEGAS, NV (June 15, 2011) — KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and now Voice-Over-IP (VoIP) services in the United States, announced today the asset acquisition of Voice-Over-IP (VoIP) operations of the entities doing business as CommX.

KeyOn Communications’ largest and controlling shareholder is California Equity LLC, an entity controlled by Dr. Patrick Soon-Shiong. Dr. Soon-Shiong, having built and sold two multi-billion dollar pharmaceutical companies in the past few years including Abraxis BioScience to Celgene Corporation (NASDAQ: CELG), is a physician, scientist and philanthropist who has made clear his intention to develop a comprehensive “health information highway system” throughout the United States.

It is expected that CommX will add over $3 million in annualized revenues and will immediately make a meaningful contribution to EBITDA. CommX has experienced strong annual organic growth over its history and averaged 15% over the 12 months ended 2010. For the first quarter ended March 31, 2011, on a pro forma basis after giving effect to the two acquisitions completed in the quarter and CommX’s results for the quarter, KeyOn would have revenues of approximately $3.4 million and a narrowed Adjusted EBITDA loss of $270,000.

Founded in 2002 by telecommunications industry executives, Tampa-based CommX (http://www.commxinc.com/) provides hosted VoIP services to businesses and residential customers through direct distribution as well as third-party wholesale and agent partners, including Internet service providers (ISPs), phone system equipment vendors, and system integrators. The VoIP services are provided using redundant softswitch architecture with switching capabilities provided by VoIP application software leader, Broadsoft, Inc. (NASDAQ: BSFT).

The strategic acquisition of CommX provides KeyOn with a vertically integrated platform to upsell VoIP services to its more than 20,000 wireless broadband subscribers. Moreover, acquiring the CommX operations will give KeyOn ownership of an intelligent, VoIP softswitch, creating higher overall margins in selling VoIP services. Management anticipates that KeyOn should experience a lower cost of new customer acquisition in selling VoIP given its existing relationship with potential customers as their broadband provider.

Jonathan Snyder, President and CEO of KeyOn Communications, commented, “We are extremely excited about offering VoIP services on our own VoIP infrastructure. We are fortunate to be acquiring a well-run organization with very talented employees. We intend to immediately upsell VoIP services across our networks, including our new networks funded by our $10.2 million American Recovery and Reinvestment act award. And, we plan to build on CommX’s historical customer and sales growth by expanding sales through the addition of new wholesale partners and by continuing to support those selling the services today.”

Mr. Snyder continued, “We believe that the acquisition of these VoIP assets is a compelling vertical integration strategy that complements our wireless broadband operations, Rural UniFi acquisition program and broadband stimulus initiatives. By owning best-of-breed VoIP technology, we not only ensure the highest quality of service across our platform but also own 100% of the margin generated from this rapidly growing voice service offering.”

According to Infonetics Research, in 2010 VOIP services revenue grew to $50 billion up from $35 billion in 2008, a 21% annual growth rate. Infonetics also forecasts the combined residential/SOHO VoIP services market will grow to $74.5 billion in 2015.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, broadband stimulus application expenses and other non-recurring expenses, including the duplication of accounting personnel, temporary employees, and travel and moving expenses in connection with the relocation of our accounting department. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
This press release contains forward-looking statements, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, maintain the health of the Company’s networks to minimize losses to the Company’s subscriber base, the Company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the Company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on March 30, 2011. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Jonathan Snyder, CEO
402-998-4000
jon.snyder@keyon.com

LAS VEGAS, NV (May 16, 2011) — KeyOn Communications Holdings, Inc. (OTCBB: KEYO) (“KeyOn” or the “Company”), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, reported its financial results for the first quarter ended March 31, 2011.

Management Comments
Jonathan Snyder, President and CEO of KeyOn Communications, commented, “We are now fully realizing the financial contribution of the acquisitions we completed throughout 2010. In the first quarter of 2011, we completed two additional acquisitions, bringing our total to 9 acquisitions under Rural UniFi and 13 overall. Moreover, we are anticipating future revenue contribution from the wireless broadband network being constructed with $10.2 million of federal funding and are optimistic that funds for that project will be released in the second quarter.”

Snyder continued, “While our first quarter includes results from the acquisitions of wireless broadband assets from Wells Rural Electric Company (WREC) and ERF’s Central and North Central Texas areas for only 2 months and 1 1/2 months, respectively, revenues grew 48% over the prior year’s quarter and 11% on a sequential basis. On a pro forma basis for these acquisitions, first quarter revenues would have grown 67% and 25% on a prior year and sequential basis, respectively. We are continuing to experience the benefits of our growing scale as demonstrated by the fact that our Adjusted EBITDA loss has continued to narrow in the first quarter to $530,000.”

2011 First Quarter Consolidated Results
During the three month period ended March 31, 2011, we recognized revenues of $2,365,638, as compared to revenues of $1,594,959 during the three month period ended March 31, 2010, representing an increase of approximately 48%. Our increased revenue was a result of the subscriber growth resulting from the completion of seven acquisitions during the last three quarters of the year ended December 31, 2010 and the three month period ended March 31, 2011, as well as the effects of the increase in organic marketing efforts during that second half of 2010.

In the first quarter of 2011, operating expenses totaled $5,006,802 as compared to $3,509,977 for the three month period ended March 31, 2010, representing an increase of approximately $1.5 million or 43%. By removing non-cash stock compensation expense from payroll and professional fees and after giving effect to the exclusion of stock compensation, our operating loss margin increased by 5 percent from a total normalized operating loss of $1,223,035 for the three month period ended March 31, 2011 as compared to a loss of $752,377 for the three month period ended March 31, 2010.
We had a net loss of $17,854,757 for the three month period ended March 31, 2011, as compared to net income of $2,253,449 for the three month period ended March 31, 2010, representing a decrease of $20,108,206. The reasons for the decrease were the non-cash effect of $15,343,075 from the conversion of the Cal Cap note into Series A Preferred Stock and non-cash stock compensation expense of $1,418,129. If the effect of the conversion of the note and the non-cash compensation expenses are removed, our net loss would be $1,093,553, as compared to a net loss of 1,765,660 for the three months ended March 31, 2010, an improvement of 38%.

Adjusted EBITDA for the first quarter ended March 31, 2011, was negative $530,047 compared to a negative $613,720 in the first quarter of 2010, an improvement of 14%.

Outlook
Jonathan Snyder continued, “We believe that the company is executing well on its plan for growth through organic subscriber additions and acquisitions. In the second quarter and throughout 2011, we expect continued growth and further reductions of Adjusted EBITDA loss as we receive the full financial benefit of the acquisitions completed in this quarter and cost savings resulting from scale economies. KeyOn is also working on creating other revenue streams through the sale of both higher bandwidth packages and value-added services to our existing subscriber base. For these services, we will look to either acquire the platform or partner. To that end, we have launched 4G markets in Southern and Northern Nevada as well as Nebraska and partnered with MiMedia for cloud-based media storage.”
 

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, broadband stimulus application expenses and other non-recurring expenses, including the duplication of accounting personnel, temporary employees, and travel and moving expenses in connection with the relocation of our accounting department. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

The Non-GAAP measure, Adjusted EBITDA, including non-recurring expenses, has been reconciled to Net Income/(Loss) as follows (click on the image for a larger view):

Safe Harbor Statement
This press release contains forward-looking statements, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, maintain the health of the Company’s networks to minimize losses to the Company’s subscriber base, the Company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the Company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on March 30, 2011. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc
Jonathan Snyder, 402-998-4000
jon.snyder@keyon.com
www.keyon.com

2010 Operating Highlights

• Raised $15 million through a convertible secured note that ultimately converted into preferred equity and warrants in March 2011
• Awarded $10.2 million, subject to certain closing conditions, from the Rural Utilities Service under the American Recovery and Reinvestment Act (ARRA) of 2009 to deliver 4G wireless broadband services to almost 40 communities throughout rural Nevada
• Fourth quarter revenues increased 33% to $2,123,418 from $1,594,959 in the first quarter of 2010
• Annual revenues grew 9% to $7,523,678 from $6,898,232 in 2009 and, based upon our revenues for the quarter ended December 31, 2010, we experienced approximately 23% growth on an annualized basis as compared to full year revenues for 2009
• Completed 6 acquisitions of wireless broadband companies under our Rural UniFi initiative

Marketing and advertising expenses increased 353% resulting in approximately 83% growth in gross subscriber additions as compared to 2009

• Implemented a next-generation, 4G wireless networks, starting with the launch of our WiMAX network in Pahrump, Nevada which has helped to increase both subscriber growth and ARPU in that market

Management Comments
Jonathan Snyder, President and CEO of KeyOn, commented, “In 2010, we experienced considerable growth resulting from acquisitions and our continued focus on our core business. Our revenues grew 23% from the first quarter to the fourth quarter of 2010 due to contributions from acquisitions and a positive trend on net subscriber additions starting in July 2010. At the same time, we had significant participation in Round Two of the Broadband Initiatives Program and received a $10.2 million award from the Rural Utilities Service that is subject to certain closing conditions. Importantly, we raised our first relatively sizable round of capital in the form of $15 million of convertible debt that converted into preferred equity in March 2011.”

Snyder continued, “Over the past two years, we experienced a decline in our revenues, but for the year ended 2010 we reversed that trend with year over year revenue growth of 9%. While our Adjusted EBITDA loss widened by $1.6 million to $2.05 million from $440,000 in 2009, the increase comes primarily from increases in our organic marketing activities, including installation, and the drag that our previously declining revenue base had on the first half of 2010. In fact, in the fourth quarter, our average Adjusted EBITDA loss for the prior three quarters was reduced by approximately 60%. In the third and fourth quarters, we received the full benefit of the larger acquisitions we completed during first and second quarters as compared to the three smaller acquisitions we completed in the second half of 2010.”

2010 Annual Consolidated Results
For the year ended December 31, 2010, we reported revenues of $7,523,678, compared to revenues of $6,898,232 during the year ended December 31, 2009, representing an increase of approximately $625,446 or 9%. Our increased revenue was a result of the completion of six acquisitions during the year ended December 31, 2010 and increased gross subscriber additions towards the end of 2010 resulting from an expansion of our marketing efforts as compared to the general contraction in our business and reduction in our subscriber base that occurred throughout the year ended December 31, 2009 and into the first two quarters of 2010. The acquisitions and subscriber growth that we accomplished in the year ended December 31, 2010 served to reverse the decline we experienced in the year ended December 31, 2009. As a result of the increase in both the gross and net subscriber additions in the second half of 2010, we expect to receive a financial benefit throughout 2011.

The operating loss for the year ended December 31, 2010 was $7,098,103, as compared to $4,669,206 for the year ended December 31, 2009, representing an increase of approximately $2.4 million or 52%. After removing approximately $2.4 million of one-time costs associated with professional fees incurred in connection with our Round Two ARRA applications, temporary staff, non-cash stock based compensation, payroll expenses from the duplication and relocation of our accounting staff and the travel expenses related to the moving of the accounting departments, our normalized operating loss for the year ended 2010 equaled $4,708,176 as compared to our normalized operating loss for 2009 of $3,577,509, after removing $1,091,697 of similar one-time or non-recurring costs, for an increase of $1.1 million or 32%.

The Company reported a net profit of $ 2,042,884, or $0.10 earnings per common share, for the year ended December 31, 2010, compared to a net loss of $6,595,702, or $(0.49) loss per common share, for the year ended December 31, 2009, representing an increase of $8,638,586 or approximately 131%. The major contributing factor of the improved net income was income recognized totaling $12,609,485 for the net change in fair value of a derivative instrument.

Adjusted EBITDA for the year ended December 31, 2010 was negative $2,046,978 as compared to negative $440,692 for the year ended December 31, 2009, a change of 364%. The significant contributing factor in the widened EBITDA loss related to the Company’s increased marketing and sales activities.

Outlook
Jonathan Snyder continued, “2010 was an important year in establishing the foundation for future and sustained growth. Already in 2011, we have acquired two additional businesses that, when their annual revenues are added to our annualized 2010 fourth quarter revenues, would project a pro forma revenue run rate for the company of $11 million from a reported $7.5 million in 2010. With the contribution from these acquisitions and the benefit of the growth we experienced in the second half of 2011, we expect to see improvements in our EBITDA. We believe that the way to create shareholder value is through growth – this is why we invested in our core business, completed a total of nine acquisitions since the fourth quarter of 2009, launched 4G WiMAX markets and participated in the government stimulus program. We expect our growth initiatives to continue with our first quarter of 2011 showing additional growth and a narrowed EBITDA loss.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTCBB:KEYO.ob – News) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

Non-GAAP Measures
This press release includes disclosure regarding “Adjusted EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“Adjusted EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation, broadband stimulus application expenses and other non-recurring expenses, including the duplication of accounting personnel, temporary employees, and travel and moving expenses in connection with the relocation of our accounting department. Adjusted EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

The Non-GAAP measure, Adjusted EBITDA, including non-recurring expenses, has been reconciled to Net Income/(Loss) as follows:

Safe Harbor Statement
This press release contains forward-looking statements, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, maintain the health of the Company’s networks to minimize losses to the Company’s subscriber base, the Company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the Company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K filed on March 30, 2011. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Contact:

KeyOn Communications Holdings Inc.
Jonathan Snyder, 402-998-4000
jon.snyder@keyon.com
www.keyon.com

ORLANDO, FLORIDA–(Marketwire – March 24, 2011) – CTIA – An innovative combination of DragonWave high capacity packet microwave backhaul and backbone networking solutions will enable KeyOn Communications Holdings, Inc. (OTCBB:KEYO – News) to bring unprecedented services to rural communities across Nevada. The Horizon Compact and Horizon Duo high-capacity packet microwave solutions from DragonWave Inc. (TSX:DWI – News; NASDAQ:DRWI – News) are being deployed to anchor the “middle mile” network components for KeyOn’s stimulus-funded 4G wireless network service rollout to rural homes, businesses and critical community facilities such as healthcare providers.

KeyOn, one of the largest providers of wireless broadband, satellite video and voice-over-Internet-protocol (VoIP) services in the United States, in September 2010 received a $10.2 million American Recovery and Reinvestment Act (ARRA) award to provide 4G, last-mile wireless broadband access and VoIP services in qualified rural communities throughout Nevada.

As part of the project, KeyOn is deploying equipment from DragonWave, a leading global supplier of packet microwave radio systems for mobile and access networks. DragonWave Horizon Compact and Horizon Duo will form roughly 110 high-capacity links in a major ring architecture interconnecting communities across Nevada. Instead of deploying legacy leased-line connections from traditional wireline operators in each of the communities served, KeyOn’s resilient architecture and high-capacity statewide network will allow for cost-effective aggregation of Internet bandwidth at only a few select fiber points.

“DragonWave’s experience and reputation as a high-capacity packet microwave equipment vendor are highly regarded by us and an important factor in our decision to select DragonWave as an equipment vendor for this advanced all 4G wireless network,” said Jonathan Snyder, Chief Executive Officer for KeyOn Communications. “Our engineering team valued the fact that DragonWave offers a comprehensive, flexible family of solutions that enables us to deploy the optimal solution for every link allowing us to both remotely dial up and dynamically adjust our capacity levels as necessary. DragonWave’s support throughout the project has been excellent, and we look forward to continuing to work with their talented engineering team throughout the network deployment.”

KeyOn hopes to introduce services community by community across Nevada beginning early in the second half of 2011. When the network is complete, nearly 100,000 people, 5,500 businesses and 850 critical community facilities across the state will be able to access next-generation, 4G broadband services.

“By offering innovative new services similar to those available in urban markets, KeyOn’s network will stimulate economic development and job creation as well as transform the quality of life for Nevada’s rural population,” said Peter Allen, President and Chief Executive Officer of DragonWave. “Offering industry-leading capacity and spectral efficiency, the DragonWave solutions are designed for the requirements of tomorrow’s networks. In addition, our products deliver key features, including pay-as-you-grow scalability, rapid deployment that make our high-capacity packet microwave solutions especially well-suited for deployment in rural, low-density regions such as KeyOn’s Nevada network.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTCBB:KEYO – News) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

About DragonWave
DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave’s carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave’s products is wireless network backhaul. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave’s corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, Asia, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com.

DragonWave® and Horizon® are registered trademarks of DragonWave Inc.

Forward-Looking Statements
Certain statements in this release constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements include statements as to DragonWave’s growth opportunities and the potential benefits of, and demand for, DragonWave’s products. These statements are subject to certain assumptions, risks and uncertainties, including our view of the relative position of DragonWave’s products compared to competitive offerings in the industry. Readers are cautioned not to place undue reliance on such statements. DragonWave’s actual results, performance, achievements and developments may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by DragonWave with U.S. and Canadian securities regulatory authorities. DragonWave assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law.

Contact:

Nadine Kittle
DragonWave Inc.
Marketing Communications
613-599-9991 ext 2262
nkittle@dragonwaveinc.com

John Lawlor
DragonWave Inc.
VP Investor Relations
613-895-7000
jlawlor@dragonwaveinc.com

Interprose Public Relations
Becky Obbema
(for DragonWave)
408-778-2024
Becky.Obbema@interprosepr.com

LAS VEGAS–(BUSINESS WIRE)– KeyOn Communications Holdings, Inc. (OTCBB:KEYO.ob – News), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States in terms of subscribers, announced that the Company’s $15 million secured convertible note has been converted into shares of the Company’s preferred stock and warrants. The conversion was ratified by a majority of the Company’s shareholders at a special meeting held on March 11, 2011. The preferred stock and warrants are held by The California Capital Limited Partnership, an entity controlled by Dr. Patrick Soon-Shiong. As a part of the conversion, The California Capital Limited Partnership will designate a majority of the Company’s board of directors.

Jonathan Snyder, KeyOn’s Chief Executive Officer, commented, “We are extremely proud to have Dr. Soon-Shiong as our largest shareholder. His investment in KeyOn will accelerate our development and deployment of customized solutions for the health care industry in the rural markets we serve today and those we are considering in the future. As an example, our $10.2 million stimulus award to deploy advanced 4G wireless broadband services throughout rural Nevada, allows us to collaborate and partner with the entities and programs that focus on critical community facilities, such as rural hospitals and clinics, in our proposed coverage.”

Snyder continued, “Our business continues to grow. We closed two acquisitions in February, bringing our total to nine acquired wireless broadband businesses since we launched our Rural UniFi initiative in September 2009. These acquisitions have contributed to our top-line revenue growth and, as important, expanded our network coverage in areas which complement our existing footprint. Our network coverage has grown approximately 20% over the past year, providing us with more potential customers to serve with an array of services. In 2011, KeyOn is focused on leveraging our network to drive organic subscriber growth and increasing our average revenue per subscriber with additional services as well as selectively approaching certain market verticals, beginning with health care.”

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB:KEYO.ob – News) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 62,000 square miles and cover over 2,700,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States in terms of subscribers. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

Safe Harbor Statement
Certain statements contained in this press release are “forward-looking statements” within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K/A filed on December 1, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Contact:
KeyOn Communications Holdings, Inc.
Jonathan Snyder, 402-998-4000
jon.snyder@keyon.com
www.keyon.com

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LAS VEGAS, NV (February 16, 2011) — KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced the closing of the acquisition of certain wireless broadband networks and subscribers in East Central Texas from ERF Wireless, Inc. (OTCBB: ERFW).

The acquired networks have demonstrated historically consistent revenues and currently generate positive EBITDA. It is expected that KeyOn will receive the benefits of the EBITDA immediately. KeyOn currently operates networks in Texas adjacent to some of the networks being acquired and expects to expand its presence around those networks.

Jonathan Snyder, KeyOn’s President and Chief Executive Officer, stated, “The acquisition of these Texas networks represent a meaningful purchase in terms of subscribers, revenues and EBITDA. With this acquisition, we will not only expand our footprint in Texas but will also be strengthening our foundation for future growth and acquisitions in this region. Finally, with cost savings, and the expanded EBITDA that will result due to our overall operational scale, we believe this represents an exceptionally high return on invested capital, well above our internal benchmark.”

This acquisition will represent the ninth acquisition of network assets and subscribers since the inception of Rural UniFi in the fourth quarter of 2009 and is the Company’s thirteenth acquisition overall.

Rural UniFi is a strategic acquisition initiative designed for independent wireless broadband companies to realize immediate value from their networks by being acquired by or merging with KeyOn. Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTCBB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 55,000 square miles and cover over 2,800,000 people, as well as small-to-medium businesses. With its successful track record of acquiring companies through its Rural UniFi initiative and growth of its overall subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company’s expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com. Companies interested in participating in Rural UniFi can visit www.keyon.com/ruralunifi.html.

About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at www.erfwireless.com and www.erfwireless.net or call 281-538-2101. (ERFWG)

Non-GAAP Measures
This press release includes disclosure regarding “EBITDA” which is a measurement used by KeyOn Communications to monitor business performance and is not recognized under GAAP (generally accepted accounting principles). Accordingly, investors are cautioned in using or relying upon these measures as alternatives to recognized GAAP measures.

“EBITDA” is defined as earnings or loss from operations adjusted for depreciation, amortization, goodwill impairment, non-cash stock-based compensation. EBITDA should not be construed as an alternative to operating loss as defined by GAAP.

Safe Harbor Statement
Certain statements contained in this press release are “forward-looking statements” within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company’s expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company’s control, which could cause actual results to differ materially from such statements, including, without limitation, the company’s ability to secure ARRA stimulus funding, its ability to successfully complete accretive acquisitions and grow its business organically, the company’s reliance on multi-user unlicensed spectrum to service subscribers, competition from larger and better financed providers, the company’s reliance on third party sales representatives and new and more burdensome telecommunications’ regulations. For a more detailed description of the factors that could cause such a difference, please refer to the company’s filings with the Securities and Exchange Commission, including the information under the headings “Risk Factors” and “Forward-Looking Statements” in our Form 10-K/A filed on December 1, 2010. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Jonathan Snyder, 402-998-4000
jon.snyder@keyon.com

http://www.keyon.com/