OKALLA CORP.
TSX VENTURE : AOK

OKALLA CORP.

June 01, 2006 07:00 ET

Aloak Corp. Announces Proposed Acquisition of Web Transaction Services, Inc.

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) -

(Not for dissemination in the United States of America)

Aloak Corp. ("Aloak") (TSX VENTURE:AOK) is pleased to announce that it has entered into a letter agreement dated May 31, 2006 (the "Letter Agreement") with Web Transaction Services, Inc. ("WTS") of Austin, Texas respecting a transaction in which Aloak will acquire all of the issued and outstanding common shares of WTS. The transaction is an arm's length transaction and is subject to the policies of the TSX Venture Exchange.

About the Acquisition

The shareholders of WTS and Aloak have agreed that Aloak will acquire all of the issued and outstanding common shares of WTS in exchange for an aggregate purchase price of US $11,000,000 payable as follows:

U.S. $5,000,000 payable at the time of the completion of the transaction.

U.S. $3,000,000 payable by way of vendor financing.

U.S. $3,000,000 payable by the issuance of Aloak common shares to the Vendors at Closing, at a price per share equal to a fixed amount to be agreed upon by Purchaser and Vendors immediately prior to signing the Share Purchase Agreement, subject to the applicable policies of the TSX Venture Exchange.

Representatives of WTS and Aloak expect to enter into a formal agreement on or prior to June 21, 2006, at which time WTS and Aloak expect to issue a further press release setting out any additional details concerning the Acquisition.

Completion of the Acquisition is subject to a number of conditions in favor of WTS and Aloak, respectively, including the execution and delivery of a formal agreement, board approval of such formal agreement, completion of satisfactory due diligence inquiries, receipt of all necessary regulatory approvals (including the consent of the TSX Venture Exchange) and receipt of all third party consents necessary for Purchaser's completion of such transactions.

Information About WTS

Web Transaction Services, Inc. (WTS) is a private corporation formed in 1997 under the laws of the State of California, with offices in Austin, Texas. WTS is a leading provider of secure, reliable, and user-friendly e-check payment and ticketing systems for on-line subscriptions and instant access management processing. Additional services include ACH gateway processing and file management, fraud prevention, real-time reporting and customer service. WTS processes in excess of $125 million of merchant payment transactions per annum.

Information About Aloak Corp.

Aloak is a publicly traded technology company listed on the TSX Venture Exchange under the trading symbol AOK. Through its wholly owned subsidiary, Probilling Inc., the company provides eCommerce payment processing solutions and transaction services to web merchants. Through its wholly owned subsidiary Vesa Software Inc., the company develops, licenses and provides hosting and support services for specialized web applications.

The addition of WTS significantly expands the Aloak customer base and adds significantly to Aloak's payment transaction processing capabilities.

Completion of the Acquisition is subject to a number of conditions, including but not limited to, the execution of a formal agreement relating to the Acquisition and Exchange acceptance. There can be no assurance that the Acquisition will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the disclosure document to be prepared in connection with the Acquisition, any information released or received with respect to the Acquisition may not be accurate or complete and should not be relied upon. Trading in the securities of Aloak should be considered highly speculative.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Neither WTS nor Aloak will update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Aloak and WTS.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the Acquisition and has neither approved nor disapproved the contents of this press release.

Contact Information