Ambient Closes $2.5 Million Private Placement; Enabling Smart Grid Efficiencies Remains Company's Focus for 2008

Wednesday January 16, 9:30 am ET
Enabling Smart Grid Efficiencies Remains Company's Focus for 2008


BOSTON--(BUSINESS WIRE)--Ambient Corporation (OTCBB: ABTG - News), a leader in power line communications technologies and platforms, today announced that it has closed on a private placement of $2.5 million in principal amount of its newly issued 8% Senior Secured three-year Convertible Note from the institutional investor in Ambient’s 2007 fundings.

The Company issued the secured Note, which requires no repayment of principal until the October 2010 maturity date, to Vicis Capital Master Fund LLC. Interest on the Note does not begin accruing until July 2008; with the first quarterly interest payment due in September 2008. This latest investment increases the total investment by Vicis to $12.5MM.

Ambient has used portions of proceeds from previous closings to successfully pay down the remainder of its debt incurred from a funding entered into in 2006. In eliminating the remainder of its short-term debt, Ambient’s next repayment of principal debt is not required until the October 2010 maturity date referenced above.

John J. Joyce, President and CEO of Ambient, commented, “Having the support of an investor who shares and supports our long-term commercial vision is essential for Ambient’s success. Ambient is on track to continue with our initiatives, and reach important milestones we have set for the next phase of our growth.”

Ambient is focused on enabling energy efficiencies through the deployment of communications infrastructures over utility distribution grids that provide a flexible and scalable multi-purpose platform. A pioneer in the power line communications technology industry, Ambient designs, develops and markets Smart Grid communications technologies and equipment.

Additional information relating to the Senior Secured Convertible Notes, the warrants, and related matters will be included in Ambient’s Current Report on Form 8-K, which Ambient will be shortly filing with the Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. The offer and sale by Ambient of the securities described herein has not been registered under the Securities Act of 1933, and such securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About Ambient Corporation

Ambient is a pioneer in the power line communications technology industry and is engaged in the design, development and marketing of Smart Grid communications technologies and equipment. Ambient utilizes open, standards-based and proprietary technologies along with in-depth industry experience to provide best in class utility solutions for creating platforms for Smart Grid technologies. Headquartered in Newton, MA, Ambient is a publicly traded company (OTCBB: ABTG - News). Visit Ambient at www.ambientcorp.com.