Eagle Broadband (AMEX: EAG) appears to have found a new level of support in the $0.60-0.65 range, bouncing nicely off of it.

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Eagle Broadband Inc. (AMEX: EAG) is laying the groundwork for success in the surging IPTV market. One of few companies with Hollywood studio and major entertainment channel content distribution rights, EAG has established itself as a rapidly emerging player in the markets for broadband, Internet Protocol (IP), and communications technology and services. EAG's IPTV solutions enable broadband cable providers and hospitality organizations to provide more than 200 channels of premium viewing and also reap the benefits of sales associated with Pay-TV, high-definition (HD), personal-video- recording (PVR), video-on-demand (VOD) and subscription video-on-demand (SVOD) related purchases.

EAG has recently announced the successful closure of a multi-year, $5.5 million non-equity promissory note transaction with an institutional financer for a purchase price of $4.4 million. The majority of funding will be used to construct the company's Super Head-End in Miami (which will be the main control for its IPTV services) and also to facilitate the growth of the IPTV set-top box business. In a market expected to have more than 50 million subscribers by 2009, EAG is ramping up for near-term growth.

To further prepare for the oncoming IPTV subscriber explosion, EAG continues to perfect its offering. EAG has recently signed an agreement to deliver IPTV content around the U.S. via Terramark's NAP of the Americas facility. The facility is fully capable of delivering any service offered by any network services provider in the world to consumers in all corners of the globe with pinpoint accuracy.


Between capabilities gained through this agreement and those of the company's soon to be developed Super Head-End, EAG will be well-positioned to take over significant market share in a number of target markets. Further solidifying its IPTV offering, EAG has selected the Latens IP CAS Conditional Access solution to secure its advanced IPTV services. Commenting on the agreement, COO Brian Morrow stated "Our customers demand the best and latest video content available in the market today, and our content providers demand a robust CAS solution. We found that Latens' solution offered the best option in the IPTV CAS market today, and that its encryption architecture could adapt easily to our Eagle engineered STBs."

EAG offers the ONLY widely deployed IP high definition set top box in the hospitality industry and is paving the way for future growth. As demand for IPTV solutions grows, we believe this one has the potential to be another big winner.