A Novo Broadband Signs Binding Agreement to Acquire Broadband Services, Inc.'s Repair Business.

Business Editors

HOLLYWOOD, Fla.--(BUSINESS WIRE)--Aug. 14, 2001

Highlights

-- A Novo to Emerge as Leading Provider of Digital Equipment Service and Repair


-- A Novo to Become a Vendor of Digital Repair Services for Motorola

-- Expected to Add $10 Million in Annual Digital Repair Revenue

-- Expected to Produce $1 Million in Annual Cost Efficiencies for the Combined
Operations

-- Expected to be Immediately Accretive to EPS

-- Senior Management Team to be Strengthened

A Novo Broadband, Inc. (OTCBB: ANVB) ("A Novo"), which provides "Total Solution" service and repair of broadband equipment to OEMs and broadband systems operators throughout North America, today announced that it has signed a binding agreement to acquire the assets constituting the equipment repair business of Broadband Services, Inc. ("BSI").

The acquisition is subject to customary closing conditions, including completion of an audit of the business.

The purchase price of the acquisition is approximately $8 million in cash and assumed liabilities. The acquired business is expected to generate approximately $10 million in incremental broadband equipment service and repair revenues for A Novo's fiscal year ending September 30, 2002 and be immediately accretive to earnings. The transaction is expected to close by August 31st.. It will be funded with cash on hand and bridge loans, pending completion of additional equity financing.

With this acquisition, A Novo will become a vendor for digital repair services for Motorola's (NYSE: MOT) line of digital cable set top boxes, with authorized service centers in Delaware and Florida. Motorola has deployed approximately 16 million digital set top boxes in North America, representing over 60% of the digital set top box market in the North America.

Aggressive Market Expansion

Louis Brunel, President and Chief Executive Officer of A Novo, stated, "This acquisition will serve as the cornerstone of the ongoing implementation of our enhanced business model and signals the arrival of A Novo as an industry leader in the service and repair of digital equipment for OEMs and broadband system operators. We expect a seamless integration of the two companies. This consolidation is expected to produce approximately $1 million in annual cost efficiencies to the combined operations."

BSI currently operates three repair facilities located in New Castle,

Delaware, Milwaukee, Wisconsin and Pompano Beach, Florida.

Mr. Brunel noted that A Novo's Montreal facility commenced the service and repair of digital cable set top boxes in June 2001. The Company expects that its Ohio service center will be ready to provide digital service and repair for OEMs and broadband system operators in August, and its Florida and California service centers will be operational for digital repair by the end of September.

Strengthened Management Team

Mr. Brunel commented, "An important part of this acquisition is the addition of the years of experience in service and repair we will gain from the employees of BSI who will join us. Bill Kelly, 47, who has been a leader in cable service and repair for over 20 years, will join A Novo in the newly created position of Chief Operating Officer. Bill and I share the same vision of service and quality and he will be a welcome addition to our management team. We also expect to benefit from the digital repair experience gained by BSI's personnel in working with Motorola."

Mr. Kelly stated, "A Novo's acquisition of BSI's repair business will establish the largest network of broadband equipment service and repair facilities in North America. The cable industry has never experienced this type of commitment to fulfilling its service and repair needs."

Mr. Brunel concluded, "This acquisition will be a milestone in the history of A Novo. It will expand our geographic footprint, strengthen our senior management team and broaden our network of industry contacts. We are confident that we will be able to capture a significant share of the growing digital service and repair market throughout North America."

A Novo Broadband, Inc. (www.a-novobroadband.com) is part of the Paris-based A Novo Group (www.a-novo.com) which services broadband, electronic, and telecommunications equipment on an industrial scale in Europe, and North and South America. The Company has its corporate office in Hollywood, Florida, and four service centers located in California, Ohio, Florida and Canada. The Company serves a blue chip customer base that includes 3Com, AT&T Broadband, Adelphia, Alpha Technology, Ameritech New Media, Comcast, Motorola, Pace Micro Technology, Rogers, Scientific Atlanta, Time Warner and Videotron.

Broadband Services, Inc. is a full provider of products and services to the broadband and communications industry. With a full array of services from network design and implementation to e-commerce supply chain management, Broadband Services, Inc. provides a comprehensive approach to the digital revolution. Broadband Services, Inc. also has six stocking warehouses across the United States to provide superior service across the nation. More information about Broadband Services, Inc. can be accessed on the Internet at www.broadbandsvc.com.

This press release includes statements which constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are identifiable by use of such words as "belief", "expect", "anticipate" or other similar words or phrases that indicate their forward-looking character. Such statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors which would cause or contribute to such differences are detailed in the Company's Securities and Exchange Commission filings, including its most recent Report on Form 10-KSB.