VANCOUVER, BC -- (Marketwired) -- 07/07/15

Urban Communications Inc. (TSX VENTURE: UBN) announces that it has commenced a civil action in the Supreme Court of British Columbia against a supplier owned and controlled by its former Chief Operating Officer ("COO").

The action claims that the supplier did not provide services for which it billed the Company, or those billings were inflated or unauthorized. The engagements to provide services were made while the supplier's owner was acting in his capacity as COO or de facto COO of Urban, and without him having sought competitive bids.

Further, the Company claims that the supplier represented that it was owed no more than $175,967 as of December 31, 2013, and that it would be rendering invoices for an additional $280,000 as of June 30, 2014, for work previously performed. The supplier then rendered additional invoices for $738,524, many of which were paid on the basis of the earlier representations, and that these payments were facilitated by the former COO. The Company alleges that the supplier purposely did not provide full disclosure and concealed the true facts from Urban and its accounting personnel, that the Company relied on these representations in its financial reporting and in raising capital, and that it has suffered damages as a result.

The Company is claiming general damages, specific, punitive and exemplary damages, costs and interest. The time limitation for the supplier to file a response to the Notice of Civil Claim has not yet expired.

ABOUT URBAN COMMUNICATIONS INC.

Urban Communications Inc. (TSX VENTURE: UBN), through its operating subsidiaries, is a telecommunications company providing a full suite of Internet, voice, video and broadband application products over its state-of-the-art carrier grade fibre optic network to commercial, residential and public sector customers. The Company's fibre optic network covers 200 km. across metro Vancouver and Victoria and has a potential serviceable market of 850,000 residential units and 80,000 commercial enterprises. Urban has recently launched high-speed Internet service to residential and commercial subscribers on its network at 1,000 Mbps (1 Gbps).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFO:
John Farlinger
Chief Executive Officer
Phone: (604) ) 763-7565
jafarlinger@urbanfibre.ca

Elina Chow
Director, Investor Relations
Phone: (416) 845-8495
echow@urbanfibre.ca
ir@urbanfibre.ca
www.urbanfibre.ca