Multiband Announces Expiration of Letter of Intent to Acquire WPCS International Incorporated

Multiband Corporation, MBND today announced that it will allow a Letter of Intent for the remaining portion of an acquisition with WPCS International Incorporated WPCS to expire effective February 1, 2012 as the Company believes it is not viable to conclude the transaction as originally intended given current market valuations. This will result in Multiband losing exclusivity to negotiate a purchase of the remaining business operations of WPCS. The original agreement included a provision that during the exclusivity timeframe, Multiband would not sell any of the 709,271 common shares of WPCS International it currently owned. This restriction will now be lifted as well. The terms are consistent with those detailed in the parties' original June 2011 Letter of Intent. James L. Mandel, CEO of Multiband, commented, "We continue to have a vested interest in the success of WPCS as a friendly shareholder and expect to work closely with them regarding any future items of mutual interest. The engineering and wireless intellectual properties that we acquired in September of 2011 have led to further opportunities to diversify our revenue stream. The main driver behind the initial acquisition was that we believed the cost to develop these capabilities would have far exceeded the $2 million purchase price besides the fact that this provided incremental benefit over and above our existing run rate.