SOURCE: BlueBear Networks International, Inc.

December 20, 2006 09:08 ET

BlueBear Closes $300,000 in a Private Placement

OTTAWA -- (MARKET WIRE) -- December 20, 2006 -- BlueBear Networks International, Inc. (PINKSHEETS: BLBR) today announced that it has completed a private placement with an accredited investor. The placement consists of 3,000,000 units at a purchase price of $0.10 per unit for gross proceeds of USD 300,000. Each unit consists of one common share of the company and one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of $0.15 for a period of 24 months from closing. Proceeds of the private placement will be used for general working capital.

Sal Khan, President and CEO of BlueBear, stated, "I am pleased with the amount of interest that our company is receiving as evidenced by this private placement. These funds will be used for completion of the final field trials of our flagship product LACE, as well as for other operating expenses."

The new shares issued have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and have been offered to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the U.S. Securities Act.

About BlueBear Network International, Inc. BlueBear Network International, Inc. (PINKSHEETS: BLBR) is a Nevada company based in Ottawa, Ontario, Canada. BlueBear develops and markets the world's first system LACE that automatically processes and categorizes media-evidence files from seized computer hard drives in child exploitation cases. LACE and a companion product IDLE, can search, and identify victims, suspects, & witnesses in police facial images databases located worldwide. For more information, visit

This press release contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe, expect, estimate, and project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. BlueBear undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlie the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the company's ability to meet its projected growth, the effects of government regulation, competition and other material risks.

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