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EAGLE BROADBAND FILES COMMS SYSTEM PATENT APPLICATION

22 Aug 02. Eagle Broadband Inc. (AMEX:EAG – News), a leading supplier of broadband products, services and content, announced today that, following a series of successful prototype tests and field trials, the company has filed its first patent application for a new communications device with widespread commercial and military applications. As reported in an earlier press release on June 6, 2002, this device is being developed in conjunction with an undisclosed European company that will provide worldwide sales and marketing for this proprietary product under a contract with the etoolz subsidiary of Eagle Broadband.

The first test units of this new communications product were delivered for prototype testing in late June 2002 and successfully tested during the following month in conjunction with one specific high volume application of Eagle Broadband’s sales and marketing partner. At present, additional joint field testing is underway in combination with a companion product that will work with the etoolz-developed device in at least some of its potential applications. This companion product is currently being produced by a third-party domestic company.

The finalization of the etoolz product and its release to production, originally planned for late August, has been temporarily delayed by a combination of parts delivery delays and inclement weather conditions in some of the locations where the device must be tested. Full production release is now scheduled for early October 2002. A pre-production review with all parties involved in the project is planned during the month of September 2002. Additional information regarding this product and its applications will be provided following a formal production design review that will be held prior to the product’s release to full production.

According to Jon Hayden, president and CEO of etoolz, Eagle Broadband’s R&D subsidiary, the company’s sales and marketing customer recently visited Eagle’s headquarters in League City, Texas, and expressed their complete satisfaction with the product’s progress to date. “With the conclusion of our prototype tests and the successful first phase of our ‘live’ field trials, we’re on schedule to begin finalizing the design next month for full production ramp-up,” said Hayden. “Our customer has begun their preliminary marketing program among their extensive commercial and military customer base, and they are experiencing a very positive reception.”

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