Ambient Secures $8.0 Million in Permanent Funding

Ambient Secures $8.0 Million in Permanent Funding
Monday November 24, 8:30 am ET

BOSTON--(BUSINESS WIRE)--Ambient Corporation (OTCBB: ABTG - News) announced today that it has raised an additional $8.0 million from Vicis Capital Master Fund (Vicis). This injection of capital follows Ambient’s strongest quarterly results to date and enables Ambient to fund present initiatives and future growth. Vicis’ investment into Ambient now totals $23.5 million.

Vicis will also be exercising all of the warrants previously issued to it between July 31, 2007 and April 23, 2008 through a combination of “cashless exercises” as well as “for cash exercises.” This exercise is anticipated to net Ambient approximately $242,142, in addition to the $8.0 million investment, and will result in Vicis holding, immediately following such exercise, approximately 65% of Ambient’s outstanding shares of Common Stock.

Shad Stastney, a partner with Vicis Capital, LLC, the investment manager for Vicis Capital Master Fund, commented, “In completing this latest round of investment into Ambient and exercising our warrants, Vicis has taken a controlling ownership position in a company that has continuously met development goals and successfully positioned itself to capitalize on the progressive movements within the smart grid space. Our investments into Ambient reflect our belief and support of its initiatives focusing on wide-scale grid efficiency gains through the deployment of such advanced technologies.”

This cash infusion, combined with the revenue generated from the contract announced in April of this year, positions Ambient to expand its business plan for a growing market and affords it the necessary flexibility to increase product manufacturing for future deployments and opportunities. The present financing involves no increase of debt, allowing Ambient to use the investment to fund current and future business activities through 2009.

“We are at a defining moment, both as a company and as a nation,” stated John J. Joyce, President and CEO of Ambient. “The incoming administration in Washington has stated that the new clean energy economy is a top priority. Along with our partners and the continued support of Vicis, we are enabling energy efficiencies and technologies that will help the country drive towards energy independence by offering utilities communications solutions for the future by modernizing the distribution infrastructure. Ambient whole heartedly supports the emerging national awareness, as we believe the most effective energy solution available to combat future increase in energy demand is to more efficiently use the energy already generated.”

On November 14, 2008, Ambient reported for the nine-months ending September 30th, year-to-date revenues of $4,450,099, an increase of 44% for the corresponding period in 2007.

Additional information relating to the terms of the investment will be included in Ambient’s Current Report on Form 8-K, which Ambient will be filing with the Securities and Exchange Commission. Additional information on Ambient’s third quarter results can found in Ambient’s most recent 10-Q.

IBM Plans Broadband Over Power Lines For Rural America

The technology allows residents of areas underserved by traditional ISPs to receive high-speed Internet access.

By Paul McDougall
InformationWeek
November 12, 2008 09:31 AM

IBM (NYSE: IBM) said Wednesday that it has struck a $9.6 million deal with International Broadband Electric Communications under which it will deploy high-speed Internet service that runs over power lines in rural U.S. markets underserved by traditional broadband technology.

IBM will use IBEC's Broadband over Power Line (BPL) equipment to roll out BPL service to customers of electrical cooperatives that provide electricity for much of rural America.

"Americans in rural areas of the country trail their urban and suburban counterparts in broadband availability," said IBEC CEO Scott Lee, in a statement. "This capability will play a crucial role in rural health, education and economic development, while closing the digital divide that exists between well served and underserved America."

Raymond Blair, director of Advanced Networks at IBM, said that, "High-speed Internet service is revolutionizing the way we do business, and access to this resource will generate great opportunities for rural America."

IBM estimates there are over 900 electrical cooperatives in the U.S., providing service that accounts for 45% of the country's total power grid.

Officials at co-op industry groups said the plan would help boost the economies of less populated areas. "This is a key development in the growth and availability of high-speed Broadband over Power Line Internet services and widespread availability of critical SmartGrid applications in the United States," said Bill Moroney, president and CEO of the Utilities Telecom Council.

With BPL, consumers can simply plug their computers into any electrical outlet to receive broadband service at speeds comparable to those offered by DSL and cable Internet Service Providers.

Despite its promise, BPL has received mixed reviews to date and as a result has largely failed to flourish. Among other things, critics charge that BPL interferes with short-wave radios signals used by Ham radio operators and others.