HyperSpace Communications, Inc. Announces Banking Relationship With Wells Fargo Business Credit, Inc.

NAMPA, Idaho, Nov. 17  /PRNewswire-FirstCall/ -- HyperSpace Communications, Inc. (AMEX:HCO), a provider of enterprise IT hardware solutions through its subsidiary MPC Computers, LLC, today announced that it has entered into a new banking relationship with Wells Fargo Business Credit, Inc. a division of Wells Fargo Bank, N.A.  The arrangement with Wells Fargo Business Credit, Inc. is a receivables facility and replaces the company's previous asset-based facility with Wachovia Capital Finance Corporation.

Under the new facility, MPC Computers may assign to Wells Fargo eligible receivables, and Wells Fargo will advance to the company 90% of the value of the receivables. The facility is secured by the assets of MPC Computers and is guaranteed by HyperSpace Communications.  The investment bank Maxim Group LLC acted as an advisor to HyperSpace for this transaction.

"This new banking relationship with Wells Fargo is another important step in addressing the company's liquidity challenges," said John P. Yeros, Chief Executive Officer and Chairman of HyperSpace Communications, Inc.

More information concerning this financing will be included in a Form 8-K that HyperSpace intends to file shortly.

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. For more information, visit HyperSpace online at http://www.ehyperspace.com/ .

Cautionary Statement

Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of HyperSpace Communications to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.  Other factors, which could materially affect forward-looking statements, can be found in HyperSpace Communications' filings with the Securities and Exchange Commission, including risk factors at http://www.sec.gov/. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward- looking statements and are cautioned not to place undue reliance on such forward-looking statements.  The forward-looking statements made herein are only made as of the date of this press release and HyperSpace Communications undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.  The company faces significant liquidity constraints more fully described in its filings with the Securities and Exchange Commission.  The new agreement with Wells Fargo will not fully resolve these liquidity constraints. 

DATASOURCE: HyperSpace Communications, Inc.



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

 



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

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