Multiband Completes Initial Portion of WPCS Acquisition for $2M

Multiband Corporation MBND today announced that it has completed the initial portion of its previously announced letter of intent for the acquisition of the WPCS International Incorporated WPCS operation centers located in St. Louis, Missouri and Sarasota, Florida effective September 1, 2011. The purchase price of this portion of the acquisition was closed for a total of $2.0 million, including $1.25 million in cash and $750,000 from the original $1.0 million escrow fund. The newly acquired business will be named Multiband Engineering and Wireless. The two locations have approximately 55 employees and Multiband will begin consolidating revenues from these operations effective September 1. These two operation centers produced approximately $13.0 million in revenue during WPCS's 2011 fiscal year ended April 30, 2011. The LOI for the remaining portion of the acquisition remains intact and includes provisions whereby Multiband is provided an exclusive period until February 1, 2012 to purchase the outstanding common stock of WPCS on terms consistent with those detailed in the parties' original June 2011 letter of intent. In exchange for the aforementioned, Multiband has agreed that during the exclusivity timeframe, it will not sell any of the 709,271 common shares of WPCS it currently owns.