USURF America Begins Receiving Funding From Fusion Capital

Business Wire, July 12, 2001

Business Editors & High Tech Writers

BATON ROUGE, La.--(BUSINESS WIRE)--July 12, 2001

USURF America, Inc. (AMEX:UAX), the developer of Quick-Cell(TM), a broadband Fixed-Wireless Internet access system, announced today that on Wednesday, July 11, 2001, it began receiving funding from Fusion Capital Fund II, LLC, a Chicago-based institutional investor, under the previously announced funding agreement. Under the terms of the agreement, Fusion Capital has agreed to purchase up to $10 million of USURF America's common stock over 25 months. The purchase price of the shares is based upon the future market price without any fixed discount to the market price. USURF America will use the proceeds to begin the build-out of company-owned Quick-Cell systems in targeted cites and for working capital. USURF America's investment banker, Gruntal & Co., L.L.C., acted as placement agent for the transaction.

"Now that we have commenced the funding with Fusion, we expect to begin our Quick-Cell system build-out in targeted cites immediately," said David Loflin, President of USURF America.

"We are very excited to commence our financing with USURF America," commented Steven G. Martin, Managing Member of Fusion Capital. "We believe that the company's low cost structure should allow it to efficiently deploy its Quick Cell systems and to capitalize on its valuable and proprietary technologies."

"This financing should allow USURF to execute its business plan at a more accelerated pace," commented William J. McCluskey, Senior Managing Director of Corporate Finance for Gruntal & Co., L.L.C.

About Quick-Cell

Quick-Cell DSL is one of the most flexible Fixed-Wireless Internet access delivery solutions on the market, one which operates in unlicensed spectrum and can be deployed far less expensively than hard wire DSL. Quick-Cell's bandwidth speed is scalable.

For more information about USURF America and Quick-Cell DSL, please visit its Web site at www.usurf.com.

Information Concerning Forward-Looking Statements

Some information in this release is forward looking. These forward-looking statements may be affected by the risks and uncertainties in USURF America's business. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of USURF America's Securities and Exchange Commission filings. USURF America wishes to caution readers that certain important factors may have affected and could in the future affect its actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of USURF America. There are many factors that will determine whether USURF America will benefit from the funding agreement described in this release. These factors include, without limitation, consumer acceptance of the Quick-Cell wireless Internet access products and USURF America's ability to provide timely customer installation services. USURF America undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.