January 11, 2005 14:30 ET
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 andgas 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-
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.
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