News: Smart Grid company AMBIENT Corp has eliminated all of its long-term debt

Ambient Positions for Future Growth

Liquidity Position Strengthened

BOSTON, Jan. 25 /PRNewswire-FirstCall/ -- Ambient Corporation (OTC Bulletin Board: ABTG) today announced steps it has taken to position itself for future growth.  The Company issued 666,666,667 restricted shares of its Common Stock to its largest shareholder upon its conversion of the remaining balance of $10,000,000 of outstanding debentures.  Following the conversion, the Company has eliminated all of its long-term debt.

The fund has also increased its equity-based credit line for the Company by an additional $5 million to a total of$8 million, the proceeds of which were deposited in an escrow account.  With $8 million now available for working capital, the Company can draw down on the escrow account as needed if the Company's available operating funds drop below $1.5 million.

"The equity conversions have enabled us to extinguish debt from our balance sheet and strengthen our financial position, allowing us greater flexibility to capitalize on strategic and financial opportunities. Combined with the increase in the funding commitment, Ambient is well positioned to capture the opportunities of today while we continue to develop next generation, environmentally responsible products and incorporate additional applications in our smart grid platform," stated John J. Joyce, President and CEO of Ambient Corporation.

Mr. Joyce continued, "We look forward to the opportunities and challenges of collaborating with our partners to bring to the utility market a true smart grid solution enabling not only smart metering but the robust platform utilities need to more efficiently and economically offer consumers real choices."

Additional information relating to the transactions described above is included in Ambient's Current Report on Form 8-K, which Ambient filed with the Securities and Exchange Commission on January 22, 2010.