UBS settles DOL claims

    




 TORONTO, July 6, 2012 /CNW/ - Unique Broadband Systems, Inc. ("UBS")   and its board of directors is pleased to announce  the court approval of a settlement agreement entered into today between  UBS, its directors, Mr. Alex Dolgonos, 2064818 Ontario Inc. ("206  Ontario"), 6138241 Canada Inc. ("613 Canada") and DOL Technologies Inc.  ("DOL" and together with Mr. Dolgonos, 206 Ontario and 613 Canada, the  "Dolgonos Parties"). 

 Pursuant to the terms of the settlement: 




        --  DOL has agreed to reduce its claims against UBS to $500,000
            from in excess of $8 million;
        --  all other claims and actions between the Dolgonos Parties, UBS
            and the current UBS directors will be dismissed, withdrawn and
            fully released without costs, although (i) the Dolgonos Parties
            will remain, in certain circumstances, entitled to assert
            claims for indemnification (based on their existing
            entitlement) against UBS in respect of claims that are unknown
            as of today, and (ii) UBS will not be precluded from taking or
            continuing proceedings against parties other than the Dolgonos
            Parties, even if such other parties may assert third party or
            other claims against the Dolgonos Parties;
        --  Mr. Grant McCutcheon and Mr. Henry Eaton will resign as
            directors of UBS and be replaced with two new independent
            directors: Mr. Victor Wells and Mr. Kenneth Taylor.  Mr. Robert
            Ulicki will remain on the board;
        --  the court has made an order in the Companies' Creditors
            Arrangement Act (the "CCAA") proceedings which, subject to a
            future order of the court, postpones the requirement of UBS to
            hold shareholder meetings until the completion of the
            proceedings; and
        --  the Dolgonos Parties will not seek further representation on
            the board or management of UBS during the CCAA proceedings and
            will support the newly constituted board through to the
            completion of the CCAA process including with respect to the
            ongoing determination and defence of the remaining claims
            against UBS made by, among others, Jolian Investments Limited
            and Mr. Gerald McGoey.




 In light of the anticipated time and expense involved in determining the  validity and quantum of the claims asserted by the Dolgonos Parties,  the directors of UBS and Mr. Dolgonos believe that the terms of  settlement that were negotiated and concluded between the parties, and  which were recommended by the court appointed monitor, are in the best  interests of all shareholders.  With this litigation settled, UBS is  now better positioned to work to conclude the CCAA process and focus on  the preservation and enhancement of shareholder value. 

 Victor Wells was CFO of Chemtrade Logistics Income Fund from its IPO in  2001 until 2006 and also served as CFO of Tahera Diamond Corp. He is a  member of Financial Executives International Canada, Chair of the  Canadian Financial Executives Research Foundation and was formerly  Chair of the Committee on Corporate Reporting. A member of the  Accounting Standards Board, Mr. Wells currently serves as Chair of  Audit Committee for GT Canada Medical Properties Inc. and a member of  the Audit Committee for Student Transportation Inc. He has previously  served as Chair of the audit committees of MagIndustries Inc.,  Northstar Healthcare Inc. and Canada Cartage Diversified Income Fund.  Mr. Wells is a fellow of the Institute of Chartered Accountants in  British Columbia and Ontario, and obtained his Institute of Corporate  Directors designation in 2007. 

 Kenneth D. Taylor enjoyed a long career as a diplomat in the Canadian  Foreign Service with postings in Guatemala, Detroit, London, Pakistan,  Iran and Canadian Consul-General in New York. He is best known as the  Canadian Ambassador to Iran who, in 1980, risked his own life and his  country's reputation to help save the lives of six American hostages  during the Iran Crisis. Since leaving the foreign service, Mr. Taylor  has worked extensively in the private sector, including five years as  Senior Vice President at Nabisco Brands/RJR Nabisco. In his current  role as Chairman of the consulting firm of Taylor and Ryan, he provides  counselling on issues of political risk, international marketing and  strategic accommodation with government. He is currently a director of  Marsh Canada, Skylink Aviation Inc., Groundstar Resources and Norvista  Resources. 

 As a result of the foregoing, the annual and special meeting of  shareholders of UBS scheduled for July 11, 2012 will be indefinitely  postponed until the completion of the CCAA process. 

 About Unique Broadband Systems, Inc. 

 UBS's shares are currently listed on the TSX Venture Exchange under the  symbols "UBS". More information on UBS can be found at www.sedar.com. 

 The corporate information contained in this release includes  forward-looking statements regarding future events and costs that  involve risks and uncertainties that could cause actual results to  differ materially. Assumptions used in the preparation of such  information, although considered reasonable by UBS at the time of  preparation, may prove to be incorrect. The actual results achieved may  vary from the information provided herein and the variations may be  material. Consequently, there is no representation by UBS that actual  results achieved will be the same in whole or in part as those  forecast. 

 Neither the 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. 

Unique Broadband Systems, Inc.


CONTACT:  Grant McCutcheon, CEO(905) 660-8100 


    

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