Vigil Locating Systems Corporation

Vigil Locating Systems Corporation

January 23, 2007 13:33 ET

Vigil GPS Announces the Approval by the Debenture Holders of the Conversion Plan Proposed by the Corporation

MONTREAL, QUEBEC--(CCNMatthews - Jan. 23, 2007) - Vigil Locating Systems Corporation ("Vigil GPS" or the "Corporation") (TSX VENTURE:VIG) announces the conversion into common shares of all of the outstanding debentures of the Corporation for a value of $2,894,000.

In a meeting, the debenture holders present or represented by proxy of the corporation overwhelmingly approved the conversion plan submitted by the Corporation on the following terms:

- Each outstanding debenture will be converted into such number of common shares of the Corporation as determined by dividing the principal amount of the debenture converted by the conversion price. The conversion price is the greater of: the average closing price per share as quoted on the TSX Venture Exchange on the twenty (20) trading days immediately preceding the conversion date, or $0.05 per share.

- In addition, those outstanding debentures whose interest payments became due on December 17, 2006 will receive a further amount of shares as determined by dividing the amount of interest payment that became due on that date by $0.05.

As a result of the debenture conversion into common shares, Vigil GPS will approximately issue an additional 59,057,000 shares. This will result in a significant dilution of the existing shareholders' interest but will also allow the Corporation to eliminate close to 3M$ of debt and become practically debt free. The Corporation is now actively discussing with potential investors to secure the working capital required by the Corporations' development plan.

About Vigil Locating Systems Corporation (

Vigil GPS specializes in the conception and commercialization of vehicle location and recovery systems by using three well-proven strategies: satellite GPS, cellular communications and Internet access. Vigil GPS has developed the very first interactive telematics solution for vehicles and commercial fleets in the marketplace. Vigil GPS modular systems are capable of instantly detecting and reporting events such as thefts and intrusions. Vehicles equipped with Vigil GPS units can be monitored 24/7 by its partner Protectron, Canada's largest provider of security monitoring. Vigil GPS is recognized by more than 30 insurance companies across Canada.

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

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