KeyOn Closes Second Acquisition under Rural UniFi Program

- KeyOn makes another accretive acquisition of network assets based in Ottumwa, IA -

OMAHA, NE (February 9, 2010) -- KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced closing the acquisition of substantially all of the assets of Affinity Wireless Services, LLC. Affinity’s network assets and wireless broadband subscribers are located in southern Iowa, contiguous with a portion of KeyOn’s existing Iowa markets. As with prior acquisitions, the proximity of network footprint is intended to allow the company to efficiently integrate operations, resulting in immediate expense savings. The company expects the Affinity acquisition to deliver approximately $170,000 of pro forma annualized aggregate Adjusted EBITDA and approximately $1.20 of pro forma Adjusted EBITDA per share issued in connection with the transaction.

Since initiating its Rural UniFi Program, KeyOn has already announced three transactions under this program. The first transaction was completed in December 2009. Affinity is the Company’s second acquisition and the third acquisition is the previously announced purchase of RidgeView Tel’s Illinois assets which is expected to close during the first quarter of 2010.

Jason Lazar, KeyOn’s Vice President of Corporate Development and General Counsel, stated, “We are building a solid business unit around Rural UniFi. We have been getting an enthusiastic response from potential acquisition candidates who want to be part of a bigger opportunity. Last year, KeyOn disclosed that we were talking to acquisitions totaling over 40,000 subscribers; we are making progress in those efforts as we continue our work on the other strategic priorities of the company.”

Because of the lack of available broadband options, rural markets are often served by independent wireless operators who provide valuable broadband services to their communities. Estimates put the number of independent wireless broadband companies at over 2,000, making the industry quite fragmented. Historically, without access to capital, these companies can experience growth challenges, as well as inefficient cost structures associated with smaller customer bases. These factors have contributed to the fact that rural markets lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 46% versus 67% broadband penetration for suburban and urban, respectively).

“I am excited about consummating this agreement with KeyOn Communications,” commented Josh Goudy, previous owner of Affinity. “KeyOn has been fantastic to work with through this process and I believe they’re the ideal company not only to take care of the existing customer base, but also to grow it as well. Through KeyOn’s ability to bring greater scale to the industry and as it continues its growth, the customers in southern Iowa will have enhanced access to broadband and advanced broadband technologies.”

Interested wireless broadband operators can visit KeyOn’s unique initiative through the company’s website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.

KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a