Priva Inc.
TSX VENTURE : PIV

Priva Inc.

January 16, 2007 14:52 ET

Priva Inc Sells Priva 'USA' Inc.

MONTREAL, QUEBEC--(CCNMatthews - Jan. 15, 2007) - Mr. David Horowitz, President and C.E.O. of Priva Inc. (TSX VENTURE:PIV) is pleased to announce that Priva Inc. ("the Company") has entered into a definitive agreement to sell its wholly owned subsidiary, Priva (USA) Inc. to Michael Rattner, an officer of Priva (USA) Inc. and Diane Rattner, for nominal consideration. In connection with the sale, all of the indebtedness owing by Priva (USA) Inc. to the Company in the amount of $2,099,430 will be settled by a cash payment by the purchasers to the Company.

The synergies originally anticipated to be garnered from the acquisition of Priva (USA) Inc. were taking much longer than anticipated to materialize. After extensive analysis and review, the Company's board determined that it was in the best interest of the Company to divest itself of Priva (USA) in order to once again achieve profitability.

"The Company is now in the process of working out a comprehensive program to make Priva Inc. profitable again for the long term. The proceeds from the sale will be used to reduce the Company's liabilities and thereby strengthen its balance sheet." Stated David Horowitz, President and C.E.O. of Priva Inc.

The Company has determined that an exemption from the valuation and minority approval requirements of the Ontario Securities Commission Rule 61-501 is available as neither the fair market value of Priva (USA) Inc. nor the consideration received by the Company exceeds 25% of the market capitalization of the Company.

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 US, the UK, Australia and New Zealand, with export sales representing just about 60% 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™" brand names. 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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