Austin Developments Corp.

Austin Developments Corp.

January 11, 2005 14:30 ET

Austin Signs Purchase Agreement to Acquire Universal Wing Geophysics Corp.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AUSTIN DEVELOPMENTS CORP.

TSX VENTURE SYMBOL: AUL

JANUARY 11, 2005 - 14:30 ET

Austin Signs Purchase Agreement to Acquire Universal
Wing Geophysics Corp.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2005) - Austin
Developments Corp. ("Austin") (TSX VENTURE:AUL) is pleased to announce
that it has entered into a definitive purchase agreement with the
shareholders of Universal Wing Geophysics Corp. ("Universal") to acquire
the 80% of the shares of Universal not held by Austin.

Universal is a private geophysical survey company involved in the
exploration for oil and gas. Universal uses state-of-the-art UAV
(unmanned airborne vehicle) technology to identify deep structures that
may contain oil and gas traps. Austin currently holds 20% of the shares
of Universal. Following Universal's successful completion of a
geophysical survey over Austin's Provost oil well near Consort, Alberta,
Austin decided to exercise its option to acquire the remaining shares of
Universal. Austin will issue six million common shares to the
shareholders of Universal as consideration for the acquisition. Upon
completion of the acquisition, Austin intends to operate Universal as a
wholly owned subsidiary and utilize this exploration technology to
expand its oil and
gas interests.

The purchase agreement contains standard representations and warranties
by the shareholders of Universal and by Austin, as well as other
provisions typical for this type of transaction. Completion of the
transaction is subject to the receipt of regulatory approvals. Mike
Muzylowski, a director and a shareholder of Austin, holds 20,000
(approximately 1.6%) of the issued and outstanding shares of Universal.
Mr. Muzylowski did not take part in the negotiation or board approval of
the acquisition and has disclosed his interest in the transaction to
Austin. Shareholder approval for the transaction has already been
received. On behalf of the Board of Directors Austin Developments Corp.

Patrick Power, President and Director

Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements. Investors
are cautioned that forward-looking statements are inherently uncertain
and involve risks and uncertainties that could cause actual results to
differ materially. There can be no assurances that future developments
affecting Austin will be those anticipated by management.


-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Austin Developments Corp.
    Patrick Power
    President and Director
    (604) 689-1799
    (604) 689-8199 (FAX)
    Email: info@austindevelopments.com
    The TSX Venture Exchange has neither approved nor disapproved the
    information in this news release.