Eagle Broadband Reports Second Quarter 2006 Results

Eagle Broadband, Inc. (AMEX:EAG), a leading provider of
broadband, Internet Protocol (IP) and communications technology and
services, today announced financial results for its fiscal 2006 second
quarter ending February 28, 2006.
   Total revenues in the second quarter were $1.76 million compared
to revenues of $2.68 million for the same period last year. Cost of
goods sold decreased by 58% to $1.54 million for the second quarter,
as compared to $3.64 million for the second quarter fiscal 2005. The
result was a gross profit of $222,000 for the second quarter or an
increase of 123%, as compared to a negative gross profit of $960,000
for the same period last year. Operating expenses for the second
quarter were $3.81 million, which is a 52% decrease from the same
period last year when Eagle incurred $8.88 million in operating
expenses. Net loss from operations was $4.0 million for the second
quarter of 2006, which is a 56% reduction compared to the same period
last year when Eagle incurred a $9.3 million net loss from operations.
   "Throughout the second quarter, we have continued to realign staff
and resources for our key market areas: IPTV Complete, SatMAX, Set-Top
Boxes and providing solutions with Managed Services," said Dave Micek,
President and CEO of Eagle Broadband. "The results are two successive
quarters with positive gross profit, continued to reduce our operating
expenses as compared to the same period last year, and reduced our net
loss in the current quarter as compared to the same period last year.
Eagle will continue to aggressively monitor and reduce costs as we
move toward profitability."
   Summary of financial and operational highlights in the 2006 second
quarter includes:

   --  Achieved a $222,000 gross profit for the quarter, as compared
        to a negative gross profit of $960,000 for the same period
        last year

   --  52% reduction in second quarter operating expenses versus the
        comparable period last year

   --  58% reduction in salaries and related costs to $1.3 million as
        compared to $3.1 million for the same period last year

   --  56% reduction in net loss from operations this quarter to $4.0
        million as compared to the comparable period last year
        quarterly net loss of $9.3 million

   --  Eagle launched a new portable version of SatMAX, known as the
        Alpha Emergency Communications Solution - "SatMAX in a
        suitcase."

   --  Eagle established an important reselling relationship with
        World Communication Center (WCC) for Eagle's SatMAX product
        line.

   --  Eric Flores will manage SatMAX Sales. Eric was previously with
        Eagle's Managed Services division.

   --  Within the IPTV Solutions division, Eagle has consolidated all
        sales activities under the leadership of Al McCabe, Eagle's
        Vice President of Sales.

   --  Russell Buras is now General Manager for the SatMAX division.
        Buras previously managed our Security and traditional cable
        businesses.

   --  Dick Sanger, Vice President of Administration, is now
        responsible for our Managed Services division.

   About Eagle Broadband

   Eagle Broadband, Inc. is a provider of broadband, Internet
protocol (IP) and satellite communications products and services. The
Company's business activities are focused on the following core areas:
   IPTVComplete(TM), delivering over 200 channels of digital
television content via IP to many market sectors, such as to telephone
companies or multi-dwelling unit operators (e.g., condominiums),
including Eagle's MediaPro standard or high-definition set-top boxes
for both hospitality and IPTV customers; SatMAX(TM), Eagle's patented
satellite telephony extension technology for indoor applications for
enterprise, military and other government customers, especially in
portable First Responder situations with Eagle's new Alpha "SatMAX(TM)
in a suitcase" model; and Managed Services, through which Eagle
provides various IP and satellite-related technology implementations
to a broad cross section of markets, including remote network
management, structured cabling and IT integration services.
   The company is headquartered in League City {Greater Houston
area}, 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.