Ambient Corp. Secures $5 Million in Investment Through Stock Conversion

BOSTON, Jan. 5, 2011 /PRNewswire/ -- Ambient Corporation (OTC Bulletin Board: ABTG), a leader in smart grid communications infrastructure, today announced the conversion of the $5 million "Holdback Account," previously established by its majority stockholder, to company securities. The deal provides Ambient with an immediate $5 million in funding, which the company will use to improve stockholder equity and strengthen its balance sheet in anticipation of new strategic and market opportunities in 2011.

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The original Holdback Account was created in 2009 as a financial protection against the continued downturn of the economy. Despite challenging economic times, however, Ambient demonstrated an ability to continually grow a market leading position throughout 2010 and finished the year with a very strong backlog of orders for its smart grid communications technology.

"The immediate injection of funding will increase shareholder equity while strengthening Ambient's financial profile for the next phase of the strategic initiatives we began in early 2010," stated John J. Joyce, President and CEO of Ambient Corporation. "Over the past two years we have grown into a leadership position in the emerging smart grid infrastructure market, and as a leader, our balance sheet needs to reflect the stability and strength we have developed."

Continued Joyce, "The investment will also allow us to continue to roll out new product lines, for which we have already received orders, and to maintain our strong position from a product perspective in the rapidly evolving smart grid market."

A recognized innovator in the migration to "smart," two-way communicating electric grids, Ambient designs and develops core infrastructure and network management platforms for forward-thinking utilities worldwide.

Additional information relating to the transactions described above is included in Ambient's Current Report on Form 8-K, which Ambient filed with the Securities and Exchange Commission on January 5, 2011.

About Ambient Corporation

Ambient designs, develops and markets Ambient Smart Grid® communications technologies and equipment. Using open standards-based technologies along with in-depth industry experience, Ambient provides utilities with solutions for creating smart grid communication platforms and technologies. Headquartered in Newton, MA, Ambient is a publicly traded company (OTC Bulletin Board: ABTG). More information on Ambient is available at www.ambientcorp.com.

This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry, and that reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to, our dependence on one key customer, our ability to raise additional capital when needed, the sufficiency of working capital, the timing and delivery of purchase orders and receipt of payment in respect thereof, the risk of market acceptance of new products and underlying technologies, the competitive market generally and in the smart grid market specifically, the success of our collaborative arrangements, changes in economic conditions generally and the smart grid market specifically, changes in technology, legislative or regulatory changes that affect us, and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Ambient, Ambient Smart Grid, Communications for a Smarter Grid and AmbientNMS are registered trademarks of Ambient Corporation with the U.S. Patent and Trademark Office.

SOURCE Ambient Corporation

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