KeyOn Closes Third Acquisition under Rural UniFi Program

KeyOn`s seventh acquisition comprises network assets in Illinois
OMAHA, Neb.--(Business Wire)--
KeyOn Communications Holdings, Inc. (OTCBB: KEYO), one of the largest providers
of wireless broadband, satellite video and voice over Internet protocol (VoIP)
services in the United States, announced closing the acquisition of
substantially all of the assets of RidgeviewTel`s Illinois nework.
RidgeviewTel`s Illinois network assets and wireless broadband subscribers are
adjacent to KeyOn`s existing Illinois markets. As with prior acquisitions, the
proximity of the network and other synergies are intended to allow the company
to efficiently integrate operations, resulting in immediate expense savings.

Jason Lazar, KeyOn`s Vice President of Corporate Development and General
Counsel, stated, "The RVT network is a great addition to our network footprint
in Illinois. Not only does it add to our subscriber base, but also affords us
the opportunity to utilize RVT`s sophisticated network management software
currently operating the network. Rural UniFi is one of our core growth
initiatives and we remain in active discussions with several qualified
candidates." KeyOn anticipates generating over $150,000 in annualized revenue
and deriving EBITDA margins of approximately 50% in connection with the acquired
assets.

Because of the lack of available broadband options, rural markets are often
served by independent wireless operators who provide valuable broadband services
to their communities. Estimates put the number of independent wireless broadband
companies at over 2,000, making the industry quite fragmented. Historically,
without access to capital, these companies can experience growth challenges, as
well as inefficient cost structures associated with smaller customer bases.
These factors have contributed to the fact that rural markets lag their urban
and suburban counterparts in terms of home broadband penetration by over 20
percent (approximately 46% versus 67% broadband penetration for suburban and
urban, respectively).

"We are pleased to have completed this transaction and believe it is good for
RidgeviewTel, KeyOn and the customers served in these markets," commented Vince
Jordan, President and CEO of RidgeviewTel. "We appreciate KeyOn`s strategy for
building scale in the rural wireless broadband industry with Rural UniFi and
look forward to participating in KeyOn`s success."

Interested wireless broadband operators can visit KeyOn`s unique initiative
through the company`s website (www.keyon.com/ruralunifi.html) where they can
receive more information and begin the qualification process.

About KeyOn Communications Holdings, Inc.

KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest
providers of wireless broadband, satellite and voice over Internet protocol
(VoIP) services in the United States, primarily targeting underserved markets
with populations generally less than 50,000. KeyOn offers broadband services
with VoIP and satellite video services to both residential and business
subscribers across 11 Western and Midwestern states. Through a combination of
organic growth and acquisitions, KeyOn has expanded its network footprint to
reach approximately 50,000 square miles and cover nearly 2,500,000 people as
well as small-to-medium businesses. With its successful track record of
acquiring companies and growing its core subscriber base, KeyOn is one of the
leading wireless broadband companies in the United States. Management intends to
drive subscriber growth through additional acquisitions as well as organic
growth across the company`s expanding footprint by offering bundled services
including broadband, video, VoIP and related valuable services such as the
Bullseye Club. The company also intends to opportunistically build mobile and/or
nomadic WiMAX networks in and around its market footprint. More information on
KeyOn can be found at http://www.keyon.com.

Non-GAAP Measures

This press release includes disclosure regarding "Adjusted EBITDA" which is a
measurement used by KeyOn Communications to monitor business performance and are
not recognized measures under GAAP (generally accepted accounting principles).
Accordingly, investors are cautioned in using or relying upon these measures as
alternatives to recognized GAAP measures.

"Adjusted EBITDA" is defined as earnings or loss from operations adjusted for
depreciation, amortization, goodwill impairment and non-cash stock based
compensation expenses. Adjusted EBITDA should not be construed as an alternative
to operating loss as defined by GAAP.

Safe Harbor Statement Certain statements contained in this press release are
"forward-looking statements" within the meaning of applicable federal securities
laws, including, without limitation, anything relating or referring to future
financial results and plans for future business development activities, and are
thus prospective. Forward-looking statements may include, without limitation,
the company`s expectations regarding: future financial and operating performance
and financial condition; plans, objectives and strategies; product development;
industry conditions; the strength of its balance sheet; and liquidity and
financing needs. Readers are cautioned not to put undue reliance on such
forward-looking statements, which are not a guarantee of performance and are
subject to a number of uncertainties and other factors, many of which are
outside of the company`s control, which could cause actual results to differ
materially from such statements, including, without limitation, the company`s
ability to secure ARRA stimulus funding, its ability to successfully complete
accretive acquisitions and grow its business organically, the company`s reliance
on multi-user unlicensed spectrum to service subscribers, competition from
larger and better financed providers, the company`s reliance on third party
sales representatives and new and more burdensome telecommunications`
regulations. For a more detailed description of the factors that could cause
such a difference, please refer to the company`s filings with the Securities and
Exchange Commission, including the information under the headings "Risk Factors"
and "Forward-Looking Statements" in our Form 10-K filed on April 15, 2009.
Consequently, future events and actual results could differ materially from
those set forth in, contemplated by, or underlying the forward-looking
statements contained herein. The company undertakes no obligation to update or
supplement such forward-looking statements.

Company Contact:
KeyOn Communications Holdings, Inc.
Rory Erchul, 402-998-4044
VP of Marketing
rerchul@keyon.com
www.keyon.com
- or -
Investor Relations Contact:
Liviakis Financial Communications, Inc.
John Liviakis, 415-389-4670
John@Liviakis.com
www.liviakis.com

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