Eagle Broadband’s United Computing Group Subsidiary Signs Contract for $5 Million Consignment of Network Equipment

Eagle Broadband’s United Computing Group Subsidiary Signs Contract for $5 Million Consignment of Network Equipment

Business Editors/High-Tech Writers

LEAGUE CITY, Texas–(BUSINESS WIRE)–Dec. 30, 2002

Eagle Broadband Inc. (AMEX:EAG), a leading supplier of broadband products, services and content, announced today that its subsidiary, United Computing Group (UCG), has entered into a specialized consignment contract to integrate and sell $5 million of new, high-performance network equipment to its existing customer base as well as to new customers. Ideally suited for large corporate or municipal networks, this high-performance equipment is being provided to UCG under an exclusive contract from an undisclosed third party corporation. The equipment has been shipped to UCG’s warehouse in Houston, Texas, where it’s being maintained in a secure, climate-controlled environment pending its integration into UCG customer networks.

Joe Grace, UCG CEO, stated that this new $5 million dollar contract is representative of one of the company’s new marketing strategies for the coming year. “We’ll be aggressively pursuing opportunities to increase corporate earnings by focusing on assignments that bring a much higher profit margin than those the company has accepted in the past. By increasing our margins in all of our business units and focusing more of our business on the integration and services sector, UCG will be able to more easily achieve higher profitability with better economies of scale.” Grace went on to note that having a corporation “floor-plan” this amount of new, high-margin network equipment illustrates its confidence in UCG’s ability to design and quickly integrate this equipment into high-quality networks throughout the country.

About Eagle Broadband

Eagle Broadband Inc. and its subsidiaries are leading suppliers of broadband products, services and content. Eagle also has extensive “last mile” cable and fiber installation capabilities and provides complete IT business integration and enterprise management solutions to Fortune 1000 companies. As the leading provider of Fiber-to-the-Home (FTTH), Eagle provides residential communities with Bundled Digital Services (BDS(SM)) packages that include cable-style television over fiber, local and long-distance telephone service, high-speed broadband Internet connectivity and security monitoring services. The company also markets structured wiring, home automation products, home theater entertainment centers, communication systems and security systems to homebuilders nationwide as well as to its contracted BDS communities. The company is headquartered in League City, Texas, south of Houston, near the NASA Johnson Space Center. Further news updates on Eagle Broadband, its products and services are available at www.eaglebroadband.com, www.broadbandmagic.com, www.atlanticpacific.com, www.etoolz.com and www.ucgi.com.

Forward-looking statements in this release regarding Eagle Broadband Inc., its United Computing Group subsidiary, and the equipment consignment contract are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company’s products, increased levels of competition, new products and technological changes, the company’s dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company’s periodic reports filed with the Securities and Exchange Commission.

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