March 03, 2010 23:00 ET

MPL Communications Inc.: Update on Court-Ordered Payment in Minority Shareholder Action

TORONTO, ONTARIO--(Marketwire - March 3, 2010) - MPL Communications Inc. (TSX VENTURE:MPZ) announces that its major shareholder Marpep Publishing Limited has proffered a combination of as much as $1 million in cash plus stock and debt to MPL totalling over $2.6 million including accrued interest to settle an order by an Alberta court given in early 2009.The independent members of the MPL board are considering these proposals.

In an oppression action launched by certain minority shareholders of MPL, the Alberta court examined management fees paid by MPL to Marpep from 2001 to 2004. Marpep provided direct marketing and management services to MPL and is owned by MPL's President and Chairman, Barrie Martland and Stephen Pepper. The court determined that $1.96 million of the fees paid from 2001 to 2004 were excessive and must be repaid to MPL, plus interest.

The court said that if the ordered amount was not repaid by February 18, 2010, then the minority shareholders who brought the original action could apply to ask the court for further directions.

Marpep made two alternative proposals to MPL in January to settle the judgment debt. Neither involves full payment of cash by Marpep to MPL. Those proposals, plus other alternatives, are presently being considered by MPL's independent directors.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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