Conporec Inc.

Conporec Inc.

February 22, 2007 09:35 ET

Conporec annonces a $11.5M CDN private placement closing

SOREL-TRACY, Feb. 22 - Conporec Inc., ("Conporec")
(TSX VENTURE:CNP) annonces that further to a modification dated February 21, 2007
to the subscription agreement signed on December 22, 2006, Amsterdams
Effectenkantoor B.V. ("AEK"), accepted to exchange immediately its
subscription receipts for Conporec units at $0.21 per unit for a total amount
of $7.5M CDN, concluding the December 2006 $11.5M placement. Each unit is
composed of one common share of Conporec at a price of $0.21 CDN per common
share and a warrant. Each warrant allows its holder to subscribe for and
acquire one share for a price of $0.23 CDN on February 21, 2009 at the latest.
After the transaction, Conporec will have $11.5M CDN in cash available to
continue its reorganization and growth plans.

Conporec also announces that following this investment, the Board of
Director of the Society will be reorganized, Thus, the Board of Director will
proceed to the nomination of Mr. Jean Beaudoin, currently President and Chief
Executive Officer of Conporec and Dr. Pieter Visser, an Amsterdam (NL)
resident and director of public societies, as directors of the Society. Dr.
Pierre Lacroix, heretofore director of Conporec will give his resignation in
order to reflect the new organization. Mr. Pedneault, Chairman of the Board,
wishes to thank Mr. Lacroix for his significant contribution to the progress
of the company. Following this reorganisation, the Board of Directors will be
composed by Mr. Laurier Pedneault, Chairman of the Board, Mr. Jean-Marie
Santander, Mr. Jacques Putzeys, Mr. Normand Ricard, Mr. Pieter Visser and Mr.
Jean Beaudoin.

Conporec and Théolia S.A. ("Théolia") (Euronext: TEO) also announce today
that they agreed to cancel the letter of intend signed on November 30, 2006 to
acquire the total of the issued and outstanding shares of the french company
Sodetrex S.A. ("Sodetrex") held by Théolia. Consequently, Conporec announces
the resumption of its stock trading on the TSX-V at 9h30 on February 23, 2007
after a hold period started on November 24, 2006 concurrently with the
issuance of this press release.

"Even without the acquisition of Sodetrex we strongly believe in the
future of the Company. We fully support Conporec in the implementation of its
business plan", stated Mr. Willem van der Meer of AEK. "With this $11.5M
financing, the writing off of its $12.9M debt, an impressive technology
portfolio, a fast growing market and a solid management team, Conporec has now
all the tools to fully realize its growth opportunities, which will surely
result in value increase for its shareholders. Conporec is now well positioned
to become a leading consolidator of a fast growing industry", said Mr. Jean

About Conporec

Conporec Inc. treats and recycles municipal solid waste through a
patented composting and sorting technology. This process reduces the need for
landfill disposal by treating 100 % of the organic content contained in solid
waste, thus reusing and recycling up to 75 % of the original waste mass. In
addition, the technology helps to reduce greenhouse gases that are typically
released through the decomposition of garbage in landfills. Conporec has
successfully operated a plant in Sorel-Tracy, Quebec and recently began start
up of a second facility in New York State (United States). A third facility is
currently under construction in France near Paris. Through Biomax Inc.,
Conporec has also delivered thirty different composting facilities that have
the capacity to produce more than 300,000 tons of compost annually. Conporec
is a socially responsible organization listed on the TSX Venture Exchange.

The statements in this release and oral statements made by
representatives of Conporec Inc. relating to matters that are not historical
facts (including, without limitation, those regarding the timing or outcome of
any financing undertaken by Conporec) are forward-looking statements that
involve certain risks, uncertainties and hypotheses, including, but not
limited to, general business and economic conditions, the condition of the
financial markets, the ability of Conporec to obtain financing on favourable
terms and other risks and uncertainties.

Contact Information

  • Mr. Jean Beaudoin, President and CEO, (450)
    746-9996; Source : Conporec Inc.,