MPZ Mpl Communications (Tier2)

MPL Communications Inc. (TSX VENTURE: MPZ) announces that it and its major shareholder, Marpep Publishing Limited, have approved a settlement of amounts owed by Marpep under an Alberta court order issued in early 2009. The order arose from an oppression action launched by certain MPL minority shareholders.

A revised settlement proposal was sent to MPL's independent directors in early March, which they reviewed together with Marpep's financial statements for the years 2002 through 2008 and the statements of personal financial affairs of Marpep's principals. The independent directors conditionally approved the settlement proposal on March 17, subject to satisfaction of a number of conditions and with director David Carlson voting against. The full MPL board met on May 20 and May 26 to discuss the proposal and the conditions and on May 28, MPL's board, satisfied that the conditions had been satisfactorily fulfilled, approved the Marpep settlement proposal. Directors Stephen Pepper and Barrie Martland declared their conflict and did not vote and director David Carlson voted against. The other three independent directors voted in favour.

As a condition of the proposal, MPL will retain the management services of its two executive officers through the engagement of their private company, Marpep, rather than directly. This will not result in any increased cost to MPL but will provide Marpep with a source of income to repay MPL. Amounts due from MPL to its two executive officers ($226,433 at March 31, 2010) will be applied to the court award on behalf of Marpep. The balance will be paid in monthly instalments of $15,000 plus interest.

Because of its current financial position, MPL's board has decided that it is unable to pay accrued management salaries owing to MPL's two executive officers. When MPL pays all or a portion of the compensation owing, MPL will remit appropriate source deductions and credit the Marpep receivable with the net amount of the compensation owing.

The payment proposal also deferred the final three principal payments on a pre-existing Marpep note. Payments of $101,072, $101,072 and $101,064 on each of June 30, 2010, 2011 and 2012, will be deferred to June 30, 2012, 2013 and 2014.

The minority shareholders who commenced the original litigation (one of whom is David Carlson, now an MPL director) filed a Notice of Motion on May 17, 2010, to bring the matter back to the court.

MPL also announces that the audit of its 2009 financial statements has been completed and the financial statements and related management's discussion and analysis and CEO and CFO certifications have now been filed on SEDAR. However, MPL did not meet the May 31 filing deadline for its Q1 2010 financial statements and related management's discussion and analysis and CEO and CFO certifications. MPL anticipates that filing will occur by June 30, 2010.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: MPL Communications Inc. Stephen D. Pepper Chairman (416) 869-1177 spepper@mplcomm.com