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FOR IMMEDIATE RELEASE
DECEMBER 10, 2004

HBC, RPU Update Broadband Testing Schedule

ROCHESTER, Minn—Rochester Public Utilities (RPU) and Hiawatha Broadband Communications, Inc. (HBC) will extend into early 2005 Phase 1 of the broadband over power lines (BPL) technology trial. This differs from plans previously announced, which had the test partners buttoning up Phase 1 by mid-October 2004 and then completing the necessary analyses to move to a wider market trial in early 2005.

By extending the schedule, RPU and HBC will have the opportunity to investigate a second vendor that may offer a more competitively priced product and more mature technology.

“It is prudent to look at new information, this new vendor, for economic and technological reasons,” said Dan Sturm, RPU supervisor of technical services and BPL project co-leader.

The new schedule, and the new vendor, may eliminate the need for a wider market trial or Phase 2.

“This vendor has a model that’s been validated in several communities, which may make a market test unnecessary,” said Sturm.

In the first quarter of 2005, if all goes as planned, HBC and RPU will perform a proof-of-concept analysis and review the new vendor’s equipment. Concurrently, HBC will perform a business case analysis for a wide-scale commercial offering. RPU will analyze the economics of leasing its infrastructure to a service provider interested in offering BPL services to customers. It is still too early to speculate on a schedule for a possible wide-scale commercial offering of BPL services in Rochester.

By participating in this test, RPU hopes to gain information on ways to better communicate directly with customers via power lines to their electric meters, maximize existing infrastructure like power lines, and develop a new revenue stream.

“Investigating the potential to directly communicate with customer meters is exciting. This test will help us prepare for the industry trend of providing and using real-time information,” said Mike Smith, RPU key account manager and BPL project co-leader.

HBC is interested in testing new methods of delivering telecommunications services that utilize infrastructure that is already in place. The Winona-based company is using new technologies to deliver video services over telephone infrastructure and also is testing wireless delivery, president, Gary Evans said “so looking at broadband power line technology was a next logical step. To date, the results of the test are very promising.”

“Equipment used in the first phase of the trial has worked reasonably well,” said Dan Pecarina, HBC vice president for technical operations. “But equipment made by the new vendor seems, at least upon casual inspection, to be better and less costly. If a more extensive review proves that is the case, we will be very happy.”

HBC began in 1992 as Luminet, a not-for-profit project that utilized a leased fiber-optic network to connect the community’s educational institutions for the purpose of extending the reach of teaching and learning. Today, HBC is a privately held full-service telecommunications company that delivers nearly 20,000 services to customers in Winona and St. Charles. In addition, HBC in October announced a decision to construct a network in Wabasha.

HBC offers cable television, telephone and internet services. More than 50 percent of HBC stock is owned by Winona area not-for-profit institutions, including public and private schools and universities, and the Winona Community Foundation. HBC is committed to enhancing and enriching the lives of those it serves. In carrying out its mission, HBC pledges to its customers access to superior advanced communications and unparalleled personal service.

As the municipal utility of Rochester, Minn., for more than 110 years, RPU provides high-quality and reliable electricity to over 42,000 customers. Water customers number more than 31,000. RPU continually investigates innovative technologies to help customers realize the best value from the services they receive. Current initiatives include fuel cell research and a wind power offering.

HBC Contact:
Dan Pecarina
58 Johnson Street, Winona, MN 55987
507-474-5805
dan.pecarina@hbci.com