Eagle Broadband Reports Third Quarter 2005 Results

     Company Achieves Sequential Quarterly Revenue Growth of 11%,
   Appoints New CEO & Implements Comprehensive Restructuring to Cut
                Costs and Renew Focus on Revenue Growth

   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 2005 third quarter
ended May 31, 2005.
   Total revenues in the third quarter were $2.97 million, a
sequential increase of 11% as compared to $2.68 million in the second
quarter and a decrease of 42% compared to revenues of $5.09 million in
the same period a year ago. The decrease in revenues was primarily
attributable to a decrease in product sales offset by an increase in
broadband and managed services.
   The company posted a net loss of $3.95 million, an improvement of
58% compared to a net loss of $9.33 million in the second quarter and
an improvement of 10% compared to a net loss of $4.38 million in the
same period a year ago. The net loss was primarily attributable to
approximately $805,000 in depreciation and amortization expenses,
$1,787,000 in professional services fees (including legal, corporate
compliance, consulting, etc.), $1,194,000 in salary and related
expenses and $755,000 in taxes.
   Dave Micek, President and CEO of Eagle Broadband said, "When I
took over as CEO in mid-April, I quickly moved to restructure the
company to reduce costs, implemented a new organizational structure to
focus resources on the highest growth market opportunities and hired
additional sales talent to accelerate our revenue growth. Although we
are just starting to realize the benefits of these changes, we
achieved sequential quarterly revenue growth of 11%, reduced our net
loss by 58% and 10% on a sequential and year over year basis
respectively, increased gross profits and reduced both operating
expenses and debt."
   Micek continued, "We also signed some important new customers
including Home Town Cable and, after quarter end, All Access
Technologies. These two customers represent as many as 50,000
potential subscribers for our IPTVComplete service. In addition, we
signed Norfolk Southern Corporation as our first commercial SatMAX
customer validating the value the technology can bring to the
lucrative corporate market. Interest in our MediaPro set top boxes
from leading hospitality systems providers continues to grow as
evidenced by On Command Video Corporation's use of our high definition
MediaPro set top box to demonstrate their newly announced high
definition in-room entertainment system at the leading hospitality
industry technology conference. I intend to continue to focus our
resources on these high growth market and revenue opportunities, to
execute with excellence and drive toward profitability in order to
maximize shareholder value for all Eagle investors."
   Summary of financial and operational highlights in the 2005 third
quarter include:

   --  David Micek appointed as the company's new President and CEO.

   --  Implemented company-wide restructuring to reduce costs and
        accelerate revenue growth.

   --  Hired Marc Surette as new Vice President, Satellite
        Communications Sales and Albert McCabe as Vice President, Set
        Top Box Sales.

   --  Achieved 11% sequential quarter-over-quarter revenue growth
        (Q3 '05 compared to Q2 '05).

   --  Reduced net loss by $5.4M or 58% on a sequential basis and
        $0.4M or 10% on a year-over-year basis to $3.95 million.

   --  Increased gross profit to $593K from a negative $960K in the
        preceding quarter.

   --  Reduced operating expenses by $2.3 million or 29% in Q3 '05
        from Q2 '05.

   --  Reduced debt to $0.6M from $1.9M in the preceding quarter and
        $5.6M in the year-ago-quarter.

   --  Completed an additional $2 million equity-based financing
        round.

   --  Signed Home Town Cable as an IPTVComplete customer.

   --  Subsequent to the close of the quarter, signed All Access
        Technologies as an IPTVComplete customer.

   --  Received order from Norfolk Southern Corporation for the
        company's SatMAX satellite communications technology.

   --  Partnered with On Command Video Corporation to demonstrate
        their new, high definition in-room entertainment system
        powered by Eagle's high definition MediaPro IP set top box at
        HITEC conference.

   --  Grew the total number of new security subscribers in Q3 '05 by
        18% compared to Q2 '05.

   --  Managed services team expanded our relationship with Hewlett
        Packard and performed structured wiring, cabling and support
        services for Toshiba.

   About Eagle Broadband

   Eagle Broadband is a leading provider of broadband, Internet
Protocol (IP) and communications technology and services that create
new revenue opportunities for broadband providers and enhance
communications for government, military and enterprise customers.
Eagle leverages years of proven experience delivering advanced,
IP-based broadband bundled services to provide service provider
partners with a way to deliver next generation entertainment,
communications and security services to their subscribers. The
company's product offerings include 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 that enable broadband providers and hotel operators to
maximize revenues by delivering state-of-the-art, interactive
entertainment services and the SatMAX(TM) satellite communications
system that provides government, military, homeland security and
enterprise customers with reliable, non-line-of-sight, voice and data
communications 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. (EAGF)
   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.