Zedi Inc.

Zedi Inc.

January 08, 2008 18:30 ET

Zedi Inc. Announces the Acquisition of J&J Oilfield Ltd.

CALGARY, ALBERTA--(Marketwire - Jan. 8, 2008) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today announces that its wholly owned subsidiary, Zedi Canada Inc., has completed the acquisition of J&J Oilfield Ltd. ("J&J"), a private company based in Fort St. John, British Columbia. With annual revenue of approximately $8 million and EBITDA of approximately $1.5 million, J&J provides 3rd party well operations management to over 400 wells in NE B.C. and NW Alberta.

The acquisition of J&J is a natural extension to Zedi's current business of delivering production operations management solutions. Zedi believes this acquisition is an opportunity to unify, simplify and enhance the combined capabilities of J&J and Zedi to deliver a new level of production operations management that will positively impact its customers' earnings and customer experience.

The purchase price of a maximum of $5 million is comprised of an upfront payment and an earnout. The amount of the upfront payment at closing was $3 million, which was paid in cash. Based on the achievement of certain 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, payable in cash and/or Zedi shares.

Matthew Heffernan, Zedi President and CEO, states, "Zedi's ability to increase the value we bring to our base of more than 200 customers will be significantly enhanced through the acquisition of J&J. At a time when the industry is faced with a shortage of skilled labour, this will allow producers to expand their asset base in order to maintain production levels. The full integration of Zedi production operations management will immediately deliver tangible value by providing experienced people and proven technology."

Joe Ollenberger, President and founder of J&J, states, "With the added ability to leverage the strength of Zedi to deliver optimized field operations, we are excited at the opportunity to increase the solutions we offer our customers while maintaining the same high level of service they currently enjoy."

Zedi 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.

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

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