HyperSpace Communications Announces Completion of Exercise of Warrants

DENVER, Feb. 27  /PRNewswire-FirstCall/ -- HyperSpace Communications, Inc. (AMEX:HCO), a provider of PC products and IT solutions through its subsidiary MPC Computers, today announced the completion of a series of transactions under which 4,193,267 outstanding warrants to purchase its common stock at $3.00 per share were exercised.  This transaction resulted in the issuance of 4,193,267 shares of common stock and proceeds to HyperSpace of $12,579,801, before commissions and other transaction expenses.  The proceeds from the sale will be used for working capital and other corporate purposes.

More details can be found in the Company's Form 8-K filings dated December 12, 2005, December 19, 2005, December 22, 2005, February 6, 2006, and February 27, 2006.

About HyperSpace Communications:

HyperSpace Communications, Inc. (AMEX:HCO), through its subsidiary MPC Computers, provides enterprise IT hardware solutions to mid-sized businesses, government agencies and education organizations.  MPC offers standards-based server and storage products, along with PC products and computer peripherals, all of which are backed by an industry-leading level of service and support. Additionally, the company provides contract manufacturing and distribution services to partners in the PC industry.  For more information, visit HyperSpace online at http://www.ehyperspace.com/ . 

DATASOURCE: HyperSpace Communications, Inc.



CONTACT:  Ross Ely of HyperSpace Communications, Inc., [phone],





Web site:  http://www.ehyperspace.com/ 

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