Tucows Announces Commencement of Dutch Auction Tender Offer to Repurchase up to 6.5 Million Common Shares

Tucows Inc.

announced today that it is commencing its modified "Dutch auction" tender offer to repurchase up to 6,500,000 shares of its common stock, representing approximately 12.2% of Tucows' outstanding shares, as previously announced on December 15, 2011. The closing price of Tucows common stock on the NYSE Amex on December 19, 2011 was $0.75. Under the tender offer, shareholders will have the opportunity to tender some or all of their shares at a price within the range of $0.73 to $0.77 per share. Based on the number of shares tendered and the prices specified by the tendering shareholders, Tucows will determine the lowest per share price within the range that will enable it to buy 6,500,000 shares, or such lesser number of shares that are properly tendered. If shareholders of more than 6,500,000 shares properly tender their shares at or below the determined price per share, Tucows will purchase shares tendered by such shareholders, at the determined price per share, on a pro rata basis. Additionally, if more than 6,500,000 shares are properly tendered, the number of shares to be repurchased by Tucows pursuant to the tender offer may, at the discretion of Tucows, be increased by up to 2% of Tucows' outstanding shares, or approximately 1.1 million shares, without amending or extending the tender offer.