Contec Innovations Inc.
TSX VENTURE : BUZ

Contec Innovations Inc.

November 21, 2008 09:30 ET

Contec Announces $1,600,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 21, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Contec Innovations Inc. (TSX VENTURE:BUZ) ("Contec" or the "Company"), a mobile service provider, today announced its intention to conduct a non-brokered private placement offering to raise gross proceeds of up to C$1,600,000. Under the terms of the private placement, the Company will offer for sale up to 32,000,000 Units (the "Units") at C$0.05 per Unit. Each Unit will consist of one common share and one transferable 3-year share purchase warrant (the "Warrant") where each Warrant will allow the subscriber to purchase one additional common share at a price of C$0.05 per common share for the first year and C$0.10 per common share for two additional years.

"We have made tremendous progress in rolling out BUZmob™ commercial services and are seeing good uptake of our mobile sports services in key markets," said Don Lay, President and CEO. "Live sports information is in demand everywhere on the planet and immediate access to the sports team of your choice on a mobile phone has built-in demand from consumers, advertisers and media companies worldwide. Contec's BUZmob meets that demand". Partnered with many of the world's leading content providers, BUZmob is a managed service offering that delivers brandable live mobile services for mobile operators, media companies and service providers.

Insiders, significant existing shareholders and new investors familiar with the mobile industry are leading the financing. "In this difficult stock market environment it is gratifying to see the confidence of knowledgeable industry investors who, by investing in our offering, recognize not only that the mobile phone represents the new device of choice for accessing the Internet but also that Contec is a leader in the fast-growing global market for mobile information delivery," added Mr. Lay.

Proceeds from the private placement will be used for continued commercial roll-out of BUZmob mobile services in China, Southeast Asia and Africa, sales and marketing, for the development of new services and for general working capital purposes.

Contec may pay a cash finder's fee equal to 8% of the total gross proceeds of the offering raised from arm's length subscribers, in cash or Units, at the discretion of the finder. The shares issued upon the closing of the private placement are subject to a four-month hold period. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

About Contec Innovations

We are innovators in mobile technology and services. Our BUZmob™ live mobile services enable mobile operators, media companies and service providers to generate new revenue from dynamic content services that engage mobile audiences worldwide --- on every handset, every network, everywhere. BUZmob offers the largest portfolio of live news, sports, entertainment and finance mobile content delivered as a managed service. Headquartered in Vancouver, Canada, Contec Innovations (TSX VENTURE:BUZ) has a sales and support office in Beijing, China. For more information: www.contec.ca or www.buzmob.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF CONTEC INNOVATIONS INC.

Don Lay, President and CEO

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward Looking Statements

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding the expected completion of the proposed private placement.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market conditions, continued availability of capital and financing, inability to obtain required regulatory approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of required regulatory approvals for the Company's proposed transactions, the availability of financing for the Company's proposed transactions and the ability of the Company to enter into commercialization agreements with third parties on reasonable terms in a timely manner. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

Hornet™ and BUZmob are trademarks of Contec Innovations Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein.

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