MIDDLETOWN, R.I., Oct. 31, 2011 (GLOBE NEWSWIRE) -- Towerstream
Corporation (Nasdaq:TWER), a leading high-speed wireless 4G service
provider and Wi-Fi network operator, and Color Broadband Communications
Inc. have entered a definitive agreement for Towerstream to acquire
certain business assets from Color Broadband in a transaction
consisting of cash, common stock and assumed obligations. Under the
terms of the agreement, Towerstream will acquire all customer
contracts, network infrastructure, and related assets. The transaction
is subject to customary conditions and is expected to close by the end
of 2011.

This transaction will be the largest to date under Towerstream's
acquisition program, and represents the fourth acquisition since April
2010. Los Angeles will become Towerstream's largest market with the
transaction increasing the market's customer base by approximately 60
percent, the market's annual revenue base by approximately 70 percent,
and its network coverage area by approximately 20 percent.

"Color Broadband is one of the largest wireless internet services
providers in California," stated President and Chief Executive Officer,
Jeff Thompson. "We are excited about integrating Color Broadband's
Points of Presence into our network and the opportunity to aggressively
build our customer base in the expanded network coverage area."

"Our California market has been growing rapidly over the past few years
and this transaction will accelerate that growth even further," noted
Joseph Hernon, Chief Financial Officer. "This acquisition will be
immediately accretive to Towerstream and embodies our focus on
opportunities that match our business model and enhance shareholder
value."

About Towerstream Corporation

Towerstream is a leading 4G service provider in the U.S., delivering
high-speed wireless Internet access to businesses. Founded in 2000, the
Company has established networks in over 12 markets including New York
City, Boston, Los Angeles, Chicago, Philadelphia, the San Francisco Bay
area, Miami, Seattle, Dallas-Fort Worth, Nashville, Las Vegas-Reno and
the greater Providence area where the Company is based. In 2011,
Towerstream launched its Manhattan Wi-Fi network geared towards mobile
operators, retail/daily deal providers and Wi-Fi operators. For more
information, visit our website at www.towerstream.com or follow us on
Twitter @Towerstream.

The Towerstream Corporation logo is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=6570

Safe Harbor

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 are inherently
subject to risks and uncertainties, some of which cannot be predicted
or quantified based on current expectations. Such risks and
uncertainties include, without limitation, the risks and uncertainties
set forth from time to time in reports filed by the Company with the
Securities and Exchange Commission, including, without limitation, risk
related to our ability to deploy and expand a Wi-Fi network in the New
York City and other key markets. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to be correct. 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 correct or update any forward-looking
statements, whether as a result of new information, future events or
otherwise.


CONTACT: INVESTOR CONTACT:
         Terry McGovern
         Vision Advisors
         415-902-3001
         mcgovern@visionadvisors.net

         MEDIA CONTACT:
         Todd Barrish
         Indicate Media
         646-396-6038
         todd@indicatemedia.com