Conporec Inc.

Conporec Inc.

August 18, 2006 19:01 ET

Conporec announces the closing of a private placement of $1.5 million

SOREL-TRACY, Aug. 18 - Laurier Pedneault, Chairman of the
Board of Conporec Inc. ("Conporec")(TSX VENTURE:CNP) announced that Conporec concluded today a
private placement of 6,000,000 units, at a price of CAN$0.25 per unit, for a
sum of CAN$1,5 million. Amsterdams Effectenkantoor B.V ("AEK"), a financial
institution based in Amsterdam, Netherlands, was retained by Conporec to
complete this private placement.

Each unit issued pursuant to this placement shall include one common
share and one warrant. Each warrant will allow its holder to subscribe to a
common share of Conporec at a price of CAN$0.25 per share for a period of
24 months following the closing of the placement. Furthermore, the common
shares and the warrants comprising the units are subject to a 4-month
restricted period during which they may not be transferred, other than
pursuant to applicable exemptions under securities legislation. The restricted
period will end on December 19th, 2006. Pursuant to this placement, AEK
received a commission equal to 5% of the gross proceeds of the placement.

As a result of this private placement, Conporec now has 63,342,595 common
shares issued and outstanding. AEK has acquired control, on behalf of
fully-managed accounts, of 12,000,000 common shares representing 18.94% of the
common shares of Conporec currently issued and outstanding. Should AEK fully
exercise the warrants it holds, to the exclusion of the other holders of
options and warrants of Conporec, AEK would control 24,000,000 common shares
or 31.85% of the issued and outstanding common shares of Conporec.

Conporec will use the proceeds of the private placement to fund its
working capital.

About AEK

AEK is a Dutch financial group with offices located at Herengracht
208-214, 1016 BS, Amsterdam, Netherlands that manages a 250 million Euros
($348 M) investment portfolio on behalf of investors. AEK is a member of the
International Securities Market Association ("ISMA") and is governed by the
Netherlands Authority for the Financial Markets. AEK operates as an
intermediary in transactions in stocks, bonds, real estate shares and
derivatives focusing on domestic and foreign institutional investors as well
as affluent private clients who appreciate the dedication and service of a
personal approach. AEK has developed an international expertise in financing
companies in the environmental sector.

About Conporec

Conporec 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 Exchange.

Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements.

Contact Information

  • Benoit Côte, Special advisor, (418) 564-7999,
    Fax : (418) 527-7516; Laurier Pedneault, Chairman of the Board, (418)527-9996, Fax : (418) 527-7516; Sources: Conporec Inc.