Eagle Broadband Announces that California Court has Ordered Lawsuit to Proceed Against Internet Posters; Eagle Broadband Believ

Eagle Broadband, Inc. (AMEX:EAG), a leading provider of
broadband, Internet protocol (IP) and communications technology and
services, announced today that the California Superior Court of Santa
Clara County issued a ruling late last week allowing discovery to
proceed in Eagle Broadband's case against Internet posters that Eagle
believes are engaging in manipulative stock trading activities.
   Eagle Broadband has alleged that these Internet posters have
intentionally posted false information on the Yahoo! Finance message
board in an effort to drive down the value of Eagle's stock price. In
response to the complaint, four of the anonymous Internet posters
filed motions to strike or dismiss the complaint as constitutionally
protected speech on a matter of public interest under California's
anti-SLAPP statute. On March 9, the Honorable William J. Elfving of
the California Superior Court of Santa Clara County issued a ruling
allowing discovery in the case to go forward with respect to two of
the posters, known as DOE 2 and DOE 3, and ruling as a matter of law
that Eagle had met its legal burden of establishing a prima facie case
against a third poster, known as DOE 4, under the California's
Anti-SLAPP law.
   Judge Elfving wrote in the ruling, "The declaration of Deirdre A.
Flaherty contains admissible evidence that Eagle's stock value and
business suffered from DOE 4's fake press release and other false and
misleading messages that were posted on the Eagle MB from January 1,
2005 through October 31, 2005. Accordingly, DOE 4's special motion to
strike is denied."
   David Micek, Eagle's President and CEO, said, "This is an
important win for Eagle's loyal shareholders, but not an unexpected
one. While Eagle fully respects the constitutional rights protected by
California's anti-SLAPP statute, the Court's ruling is an
acknowledgment that these Internet posters have simply gone too far."
   Eagle filed this lawsuit on October 5, 2005. Since then, Eagle has
learned the identity of several of the DOE defendants and will amend
the complaint to include their real identities. Through the process of
legal discovery, Eagle expects to learn additional identities as well
as to obtain the financial and trading records for several of the
DOES.

   About Eagle Broadband

   Eagle Broadband is a leading provider of broadband, Internet
Protocol (IP) and communications technology and services, including:
IPTVComplete(TM) the fastest, lowest cost way for broadband providers
to deliver the most competitive IP video services; the MediaPro line
of HDTV-ready IP set-top boxes enabling broadband providers and hotel
operators to deliver state-of-the-art, interactive entertainment
services; and, the SatMAXT communications system that provides
government, military, homeland security and enterprise customers with
non-line-of-sight voice and data satellite telephony from any location
on Earth. The company is headquartered in Houston, Texas. For more
information, please visit www.eaglebroadband.com or call 281-538-6000.

   EAGG

   Forward-looking statements in this release regarding Eagle
Broadband, Inc. are made pursuant to the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of
the company's products, increased levels of competition, new products
and technological changes, the company's dependence upon third-party
suppliers, intellectual property rights, and other risks detailed from
time to time in the company's periodic reports filed with the
Securities and Exchange Commission.