CSM Systems Corp.

CSM Systems Corp.

June 02, 2006 12:05 ET

CSM Systems Corp. Announces Proposed Debenture Private Placement and Stock Option Issuance

EDMONTON, ALBERTA--(CCNMatthews - June 2, 2006) - CSM Systems Corp. (TSX VENTURE:CKX) ("CSM") is pleased to announce that CSM intends to complete a non-brokered private placement of a 5 year convertible unsecured debenture ("Debenture") in the amount of $50,000. The Debenture will accrue interest at prime, payable monthly in arrears. During the entire term of the Debenture, the Debenture may be converted into common shares by the debenture holder, at the option of the debenture holder, at escalating prices starting at $0.58 in years 1 and 2, $0.64 in year 3, $0.71 in year 4 and ending at $0.79 in year 5. The Debenture may be paid in full by CSM at any time prior to maturity without penalty provided that, prior to payout, the debenture holder will be given 10 days notice during which time the debenture holder may convert the Debenture.

Proceeds of the private placement will be used for marketing, product development and for general operating activities. The completion of the private placement is subject to regulatory approval.

CSM also announces that, subject to regulatory approval, it has granted 100,000 options to Gervin Antypowich a director of CSM, at a price of $0.50 and with an expiry date of June 2, 2011. CSM has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 are available for the grant of options.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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