Safe Harbor Statements

Safe Harbor Statements

Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995:

• Delivers wireless broadband access to 3,300 customers in 12 major urban markets in the US

• Long term rights to prime real estate locations for access to a wide range of wireless communication services

• Network located on the highest buildings provides wireless backhaul solution for small cells which are located in areas where fiber is not a cost effective solution

• 5 acquisitions of regional providers completed to date at compelling, accretive values

• Average lifetime value of customer contracts is approximately 6 years

• Low variable costs provide significant operating leverage with gross margins exceeding 70% in larger, mature markets

• Customer ARPU rising steadily to $760 as businesses increase bandwidth to leverage the internet to drive operating efficiencies

• Reached cash flow profitability in Q1 2013

Compelling Financial Profile Large, High Growth Market Opportunity Attractive Business Model First Mover Advantage

Addressable Market Opportunity

Source: Gartner Research, Dunn and Bradstreet and Towerstream estimates.

Currently offer services in 12 markets

including 10 of the top 20 US markets.

Huge growth potential in existing and

new markets Seattle San Francisco Los Angeles Miami Chicago New York Boston Providence Dallas/Fort Worth 2 Los Angeles 146,683 3 Chicago 98,010 4 Miami 87,036 5 Washington DC 68,304 6 Dallas - Ft. Worth 65,038 7 Philadelphia 63,412 8 Atlanta 62,908 9 Houston 57,092 10 Boston 55,251 11 San Francisco 51,012 12 Detroit 47,155 13 Minneapolis 36,966 14 Seattle 36,914 15 Phoenix 36,228 16 San Diego 32,250 17 Tampa 31,541 18 Riverside, CA 30,053 19 St. Louis 29,983 20 Denver 29,724 1,277,284

Towerstream total in top 20 660,448

Market Presence 52%

Houston

Philadelphia

New Broadband Service Introduction

•

Now offering 100 Mbps of broadband access for $699

per month. Enabled by increased capabilities of

equipment and significant decreases in costs

•

Plan to focus on non-Cogent buildings

•

Low latency high quality service

•

Dedicated symmetrical service

•

Quick and easy installation

Fixed Wireless Is Faster Than Fiber

•

Electromagnetic waves move faster through the air than

through fiber optic cables

•

Fixed wireless links provide the shortest and most direct

path between two points

Fixed Wireless – Key Financials

$3,163 $2,949 $2,567 $2,596 $2,135 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14

Net Cash Flow

Guidance $14.9 $19.6 $26.5 $32.3 $33.4 $5 $10 $15 $20 $25 $30 $35 $40 2009 2010 2011 2012 2013

Annual Total Revenue

GAAP

Investment Highlights – Shared Wireless

• US mobile data traffic forecast to increase 9x over next 5 years (57% CAGR) requiring deployment of 500k to 1 million small cells

• Long term rights to 1,200+ "beach front" rooftops in major US cities offering Wi-Fi access, mobile data offload and 10,000 access points for small cell equipment

• Neutral host network enables carriers, cable, and internet companies to quickly and cost effectively expand coverage and increase capacity

• Targeting large customers on a tower-like rental basis

• Large cable company secured in Q1:13 for NYC

• International Wi-Fi access provider signed in Q2:14 for all markets

• Mature rooftop revenue potential of $4-6,000 per month with operating margins increasing to 80% as capacity filled

Robust Manhattan Portfolio

Wi-Fi Seamless Integration

(1) Passpoint is the WFA certified implementation of hotspot 2.0, supported by Qualcomm, which enables a simpler, secure and seamless access to Wi-Fi networks.

MNO 1’s Core Network Wi-Fi Radio Access

and Smart Mesh Backhaul Network

Wholesale Wi-Fi architecture

Hotspot Model (WISPr 1.0/2.0) Mobile Network Integration Model Subscriber Gateway Policy RADIUS

Server Captive Portal Accounting & Billing

PDG/GGSN/PCEF PCRF AAA HLR/HSS OCF SSIDs MNO 1 MNO 2 MNO n Retailer Partner Metro Network or 3rd_{-Party Backhaul} Control Data and/or... MNO1 View EMS Master View Wholesaler’s NOC SmartCell™ Gateway (SCG) Local Breakout

MNO 2’s Core Network (as above)

Small Cell – Problem / Opportunity

1000x

~2x

*Global growth, some regions grew more/less

DATA TRAFFIC GROWTH

Small Cell & Wi-Fi Deployments Accelerating

Driven by explosive data growth

By 2017 there will be more capacity deployed through small cells than through macro cells globally.

Source: Mobile Experts, and Signals and Systems Telecom

2009 2010 2011 2012 2013 2014 2015 2016 2017 Private WIFI Carrier WIFI Small Cells Macro Network G lo b a l M o b il e D a ta T ra ff ic 2009 2010 2011 2012 2013 2014 2015 2016 2017 Consumer Femtocell Enterprise Femtocell Carrier Grade Small Cells

S m a ll C e ll S h ip m e n ts

Small cells and carrier WiFi deployments are expected to account for nearly $352 billion in mobile data service revenues by the end of 2020, while overall spending on HetNet

Street Level Rooftop Revenue Model

Given its prime real estate

locations and established backhaul network, Towerstream is an ideal partner for carriers once small cell deployments begin accelerating in the second half 2014.

Wi-Fi antenna (~4 per roof) Small cell antenna (TWER can provide backhaul) Microwave backhaul radio (connects to TWER fixed wireless network) Wall cabinet (in-building)

Four Principal Revenue Sources:

• Wi-Fi Access - Hotspot 2.0 enables unlimited number of customers

• Co-Location - Small cell antenna rent (BYOD – tenant brings their own equipment)

• Backhaul - for small cell antenna already installed for Wi-Fi offload • Power and other related

$0.16 $0.20 $0.54 $0.65 $0.74 $0.80-$0.90 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 $0.7 $0.8 $0.9 $1.0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Financial Overview

Shared Wireless Quarterly Revenue

In Millions

Guidance