Eagle Broadband Receives Initial Order for New Commercial and Military Communications Product.

Business Editors/High-Tech Writers

LEAGUE CITY, Texas--(BUSINESS WIRE)--Jan. 6, 2003

Available in Early 2003, the Orb' Phone "Exchange" Offers Commercial

Aviation, Military, and Homeland Security Operations More Effective

and Less Expensive Communications Options

Eagle Broadband, Inc. (AMEX:EAG), a leading supplier of broadband products, services and content, announced today that it has received an initial purchase order from Euro-GSM for its new proprietary low-Earth-orbit, satellite-based communications system utilizing Eagle's patent-pending technology. Known as the Orb' Phone "Exchange," this new system offers, for the first time, true "total" global communications coverage for a large number of users from non-line-of-sight environments.

Belgium-based Euro-GSM, Eagle's exclusive marketing partner for the Orb' Phone Exchange, placed the initial purchase order as part of its annual commitment to maintain marketing exclusivity. Delivery is scheduled for early 2003. Euro-GSM has extensive contacts in the aviation industry and is the first company to earn certification for low-orbit, satellite-based communications systems on corporate jets.

"This initial sale represents only a fraction of the world's potential market from both the commercial aviation community as well as the military. Every commercial airliner is a candidate for the Exchange since the system's software and hardware are much more effective and substantially less expensive than communication systems currently available to the aviation industry," said Yves Hendrickx, president of Euro-GSM. "Plus, the enhanced service can be offered to airline passengers at a greatly reduced rate. We estimate the total worldwide sales for the Exchange system could reach thousands of units in the next three to five years."

Commercial aeronautical implications for the Exchange include the ability to provide true "all-passenger," gate-to-gate communications capabilities from inside the aircraft without the possibility of interference to the aviation navigation equipment. Interference issues are nonexistent since Eagle has concentrated its extensive radio frequency experience on the filtering stages of the product.

Military implications for the Exchange include the ability to produce the equivalent of a domestic communications environment in non-line-of-sight situations in any remotely deployed communications center -- anywhere in the world. The U.S. military has just recently extended its commitment to utilize the Iridium System -- for more information on this please go to http://www.iridium.com/corp/iri_corp-news.asp.

"The Exchange's 'total' global communications coverage is possible because our system uses the Iridium Satellite LLC voice and data network -- a constellation of 66 operational low-Earth-orbit satellites deployed on six polar planes," says Dr. H. Dean Cubley, chairman and CEO of Eagle Broadband. "Each orbit plane has 11 satellites, ensuring that every region on the Earth is covered by at least one satellite at all times. The existing constellation is designed to stay fully active without additional units for at least five years and spare satellites have just been launched by Boeing to ensure full earth coverage and spares until 2011."

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., its subsidiaries, the Orb' Phone Exchange, and Euro-GSM 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.