Priva Inc.
TSX VENTURE : PIV

Priva Inc.

October 26, 2007 14:24 ET

Priva Inc. Files a Notice of Intention to Make a Proposal to its Creditors

MONTREAL, QUEBEC--(Marketwire - Oct. 26, 2007) - Priva Inc. (TSX VENTURE:PIV) ("Priva") announced today that it has filed a notice of intention to make a proposal to its creditors pursuant to the Bankruptcy and Insolvency Act (the "Notice"). The filing of the Notice will provide Priva with a thirty-day period to file its proposal. RSM Richter Inc. ("Richter") will be appointed to act as trustee pursuant to the Notice. Concurrently with the filing of the Notice, Priva will be applying for an order from the Superior Court of Quebec appointing Richter as Interim Receiver to certain of its assets and authorizing the sale of the majority of its assets to Fiberlinks Textiles Inc. ("Fiberlinks"), a Montreal based private manufacturer and distributor of textile products.

On the basis of a fairness opinion obtained from Richter, Priva is of the view that the proposed sale of its assets to Fiberlinks represents the best outcome for all of its stakeholders. The Court is expected to render its decision on Priva's motion later today.

In connection with the proposed transaction with Fiberlinks, Priva and its President, David Horowitz, have agreed that Mr. Horowitz will cease to be the President of the Company effective immediately.

Copies of the Notice and Priva's motion will be made available shortly on Richter's website at www.rsmrichter.com.

About Priva

Montreal based Priva Inc. is a leading manufacturer, distributor and marketer of an assortment of absorbent, waterproof textile products sold to retailers in Canada, the U.S., the U.K., Australia and Spain, with export sales representing just about 67% of sales. Priva's products for adults are sold under the Priva and Americare™ labels; children's products are marketed under the "Snoozy™" and "Tidy Turtle™2" brand names and Priva's anti-allergen products are sold under the Quorum™ and Zip & Block labels.

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

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