Axia NetMedia Corporation and IMAGINA Media Audiovisual have been awarded the
Xarxa Oberta Project in Catalonia

CALGARY, Sept. 22 /CNW/ - Axia NetMedia Corporation (Axia) announced today that the Catalan regional government, the Generalitat of Catalonia (the Generalitat), through its Centre for Telecommunications and Information Technologies (CTTI) has awarded a 20 year contract to carry out the Xarxa Oberta (Open Network) project to the joint venture between Axia and IMAGINA Media Audiovisual (IMAGINA) after a public bidding process.

The fibre network will connect the corporate sites of the Generalitat and the municipalities all across Catalonia. The network will initially be deployed in the sites with available infrastructure and then for all the municipalities and sites of the Generalitat in the Terres de l'Ebre area. The excess capacity of the network will be leveraged to provide connectivity services to the wholesale market where the network is deployed, on terms determined by the European Commission.

The network will connect 696 buildings and 95 municipalities and provide large capacity to increase public service productivity in the fields of health, education, justice and safety. The amount of the award by CTTI is (euro)253 million over the 20 year term and Axia and IMAGINA will be responsible for up to a (euro)68 million investment.

Each company will contribute their own proven expertise to the success of this project. IMAGINA is the leader within the audiovisual industry, both at a regional level in Catalonia and at a national level in Spain and bring their knowledge of the Catalan environment, supplier search and contracting tasks, preferably with Catalan providers, and permanent monitoring. Axia contributes to the project with their proven experience and competence in large-scale Next Generation Network developments and projects.

Axia sells Real Broadband(TM) and passive services on Next Generation Networks that have implemented the Axia NGN Solution. The Axia NGN Solution has been implemented in Alberta, France and Singapore. Axia trades on the Toronto Stock Exchange under the symbol "AXX".

This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.

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For further information: www.axia.com or contact: Dawn Tinling VP, Investor Relations and Communications, Axia NetMedia Corporation, [phone], [email protected]