An Eagle Broadband Update: Eagle Broadband Activates Technology Center -- Phase I.

Business Editors/High-Tech Writers

LEAGUE CITY, Texas--(BUSINESS WIRE)--March 27, 2003

As a service to its stockholders and other interested parties, Eagle Broadband, Inc., (AMEX:EAG) a leading supplier of broadband products, services and content, has committed to periodically issuing "updates" on press releases that have discussed products and services that impact the major sectors of the Eagle Broadband business plan. This release will focus Eagle's new Technology Center.

WHAT WE SAID:

On April 4, 2002, Eagle announced that it had initiated construction of a new Technology Center at its League City, Texas, corporate headquarters. The new Technology Center was to include the company's fourth Master Headend Facility, as well as hardware, software and downlink facilities for assembling, editing and transmitting a wide range of digital content to residential, commercial and industrial customers throughout the United States. Eagle's new Master Headend would be the company's first all-digital headend, constructed specifically to provide bundled digital content to communities and municipalities located anywhere in the U.S. that have or will have broadband fiber connectivity, thus greatly reducing Eagle's future headend infrastructure costs. Eagle would supply the content to these new customers in an IP form specifically designed to be delivered over fiber as opposed to the legacy technology traditionally being offered by most cable and telephone companies today.

On Sept. 24, 2002, Eagle reported that the company's new Technology Center had completed its initial testing of streaming IP-based video over broadband fiber. Over the previous few months, technicians at Eagle had successfully performed a series of tests over a combination of local area commercial broadband fiber networks and Eagle's own Metropolitan Area Network in the Greater Houston area.

On Feb. 14, 2003, Eagle announced that it had scheduled the Phase I activation of its League City, Texas-based Technology Center to begin prior to the March 5, 2003, Fiber-to-the-Home Council Membership Meeting to be hosted by Eagle Broadband. The Phase I activation would mark the first time that any of Eagle's Bundled Digital Services customers would receive content originating in the new Technology Center. This activation would also mark the beginning of Eagle's longer-term plan to deploy content from its Technology Center to its own Bundled Digital Services neighborhoods and into cities and municipalities in other parts of the country.

WHAT HAS HAPPENED SUBSEQUENT TO THESE RELEASES:

Eagle has successfully launched the Phase I activation of its League City, Texas-based Technology Center and is now providing content to customers in several of its Fiber-to-the-Home (FTTH) communities where the company offers its Bundled Digital Services (BDS(SM)). Concurrent with its Phase I activation, Eagle also completed transferring the majority of its video content supply from its previous third-party video content aggregator to Eagle's own direct content aggregation and packaging at its Technology Center. This transition is in progress and is expected to be completed over the next few weeks. This new method of content delivery has been accomplished through Eagle's acquisition of contract rights from most of the major networks, studios and content sources over the past year.

CURRENT STATUS:

Eagle's direct interface to the studios, networks and other sources of content through its more than twenty content contracts is expected to significantly improve the company's margins on content when fully implemented, and will provide more variety in content and features to its customers without additional cost. The direct sourcing of video content and channel realignment is the first step in Eagle's long-term plan to deploy expanded and enhanced content, as well as other advanced features, from its own Technology Center to its BDS neighborhoods and to cities and municipalities throughout the country.

Additional press releases will be issued for significant events on our Technology Center as they occur.

To review the complete text of any Eagle Broadband press release, please visit the "Newsroom" in the company's corporate Web site at www.eaglebroadband.com.

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., and the activation of Phase I of the Technology Center 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.