Zedi Inc.

Zedi Inc.

October 31, 2007 19:11 ET

Zedi Inc. Announces Letter of Intent to Acquire J & J Oilfield Ltd.

CALGARY, ALBERTA--(Marketwire - Oct. 31, 2007) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today announces that it has signed a letter of intent for the acquisition of all issued and outstanding shares of J & J Oilfield Ltd. ("J & J") by the wholly owned subsidiary, Zedi Canada Inc,. J & J Oilfield is a British Columbia based private corporation providing 3rd party well operations management, with annual revenue of approximately $8 million and EBITDA of approximately $1.5 million.

The acquisition of J & J is a natural extension to Zedi's current business of delivering production operations management solutions. Operating over 400 wells in NE British Columbia and NW Alberta, J & J's primary services include contract well operations, inspection and supervision. Customers will benefit from the combination of skilled field operations personnel who have access to surveillance and optimization technology to deliver improved asset performance.

The purchase price is comprised of an upfront payment and an earnout portion to a maximum payout of $5 million. The amount of the upfront payment at closing will be $3 million, which will be paid in cash. Based on the achievement of revenue performance targets over the next five years, the shareholders of J & J have an opportunity to earn an additional amount up to a maximum of $2 million. The transaction is conditional upon the completion of due diligence and obtaining the necessary board and regulatory approvals.

Matthew Heffernan, President and CEO, states, "The J & J acquisition significantly enhances Zedi's ability to increase the value we bring to our base of more than 200 customers. In an environment where producers are expanding their asset base to maintain production levels, while faced with a shortage of skilled labour, the full integration by Zedi of production operations management through experienced people and proven technology will immediately deliver tangible value."

Joe Ollenberger, President and founder of J & J, states, "We will continue to offer our customers the same high level of service they currently enjoy, plus we will have the ability to leverage the strengths of Zedi to deliver optimized field operations. Many of our customers use both Zedi and J & J services today. We see this acquisition as an opportunity to unify, simplify and enhance our combined capabilities to deliver a new level of production operations management that will positively impact earnings and our customer's experience."

Zedi Inc. (TSX VENTURE:ZED) specializes in production operations management, delivering systems and services that help oil and gas producers to efficiently manage people, assets and information. We enable our customers to increase earnings from production, decrease operating costs, effectively utilize human, physical and fiscal assets and mitigate compliance risk.

Established in 1987, Zedi has enhanced the operational performance of more than 200 upstream, midstream and oilfield service customers. Please visit www.zedi.ca, for more information.

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release.

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