Conporec Inc.

Conporec Inc.

January 10, 2006 16:39 ET

Private placement of $1,5M and an equity line of $30 M for Conporec

SOREL-TRACY, Jan. 10 - Mr Jean Beaudoin, CEO of Conporec Inc
(the Company)(TSX VENTURE:CNP) announced today that the Company received an investment proposal
from Amrsterdams Effectenkantoor B.V. an investment bank in the Netherlands,
to invest $1,5M in the equity of the Company subject to the approval of the
Board, usual due diligence, approval of regulatory authorities and of 50% of
the shareholders and conclusion of the final documentation to the satisfaction
of the parties. This proposal also provides for an equity line of $30M in
favor of the Company which can be used when equity is required to satisfy the
Company's participation into new projects.

"This proposal is a clear indication of the potential of Conporec's
technologies to deal with municipal solid waste (MSW); as a result, the
Company will be in a solid position to realize its business plan which is to
build and operate large scale MSW composting plant all over the world" said
Mr Beaudoin.

It is expected that closing should take place at the end of January and
at an exercise price according to TSX rules. Each new share issued under the
initial $1,5M private placement as well as those arising from the equity line
will carry a warrant exercisable over a period of two years.

About Conporec

Conporec Inc. treats and reclaims solid waste through various patented
composting and sorting-composting processes. Those processes can reduce land
filling by treating 100% of organic content, thus contributing to reclaim up
to 75% and to reduce greenhouse gas releases. The Company operates a plant in
Sorel-Tracy and recently inaugurated its second plant (New York State, US). A
third plant is currently under construction in France (suburban Paris).
Through Biomax Inc. a Conporec's subsidiary, the Company has also delivered
some thirty composting facilities having the capacity to produce more than
300 000 tons of compost annually. Conporec Inc. is a socially responsible
organisation listed on the TSX Venture Exchange.

The statements in this release and oral statements made by
representatives of Conporec inc. relating to matters that are not historical
facts (including, without limitation, those regarding the timing or outcome of
any financing undertaken by Conporec) are forward-looking statements that
involve certain risks, uncertainties and hypotheses, including, but not
limited to, general business and economic conditions, the condition of the
financial markets, the ability of Conporec to obtain financing on favourable
terms and other risks and uncertainties.

Contact Information

  • Jean Beaudoin, President and CEO,
    (450) 449-9949; Source: Conporec Inc.,