Mr. Grant McCutcheon reports

REASONS FOR DECISION RELEASED IN RESPECT OF UBS DISPUTED CLAIMS

Madam Justice Mesbur of the Ontario Superior Court of Justice has released reasons for decision in respect of the appeal by Jolian Investments Ltd. and Gerald McGoey of the denial of their claims against Unique Broadband Systems Inc. These claims were initially filed in the company's Companies' Creditors Arrangement Act proceedings and were initially rejected by UBS on the basis that the actions of the Jolian parties constituted, among other things, a breach of fiduciary duty and demonstrated a lack of honesty and lack of good faith.

The Jolian parties submitted three proofs of claim against the company totalling approximately $9.5-million. This amount was reduced by the Jolian parties during the course of the trial to approximately $5.8-million. In addition, the Jolian parties claimed an indemnity in respect of all professional fees incurred in pursuing their claims and defending claims against them.

The company is pleased to report that Judge Mesbur found that the former UBS board, including Mr. McGoey, failed to consider the interests of shareholders and breached their fiduciary duties owing to the company. Based on these findings, she 1) disallowed the Jolian parties' claim for payment in respect of the cancellation of the company's share appreciation rights plan; 2) disallowed the Jolian parties' claim for payment of a deferred bonus; 3) disallowed the Jolian parties' claim for indemnification; and 4) ordered the Jolian parties to repay all monies previously advanced to them in the nature of indemnification.

Notwithstanding Judge Mesbur's findings of wrongdoing on the part of the Jolian parties, including breach of fiduciary duty, she also found that Jolian was entitled to an "enhanced severance" payment as a result of the termination of its contract with UBS. Jolian is now required to file a revised proof of claim, which the company expects to be approximately $2.8-million (exclusive of costs and interests, if any, which have yet to be determined). In this regard, the company is carefully reviewing Judge Mesbur's reasons for decision and considering an appeal.

We seek Safe Harbor.