Contec Innovations Inc.
TSX VENTURE : BUZ

Contec Innovations Inc.

December 24, 2008 19:06 ET

Contec Completes First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2008) - Contec Innovations Inc. (the "Company") (TSX VENTURE:BUZ), a mobile content service provider, today announced the completion, subject to TSX Venture Exchange approval, of the first tranche of its non-brokered private placement offering, originally announced November 21, 2008, for gross proceeds of $640,000. Under the terms of the private placement, the Company issued 12,800,000 units of the Company ("Unit") at C$0.05 per Unit. Each Unit consists of one common share and one 3-year common share purchase warrant ("Warrant") where each Warrant allows the subscriber to purchase one additional common share at a price of C$0.05 per common share for the first year and C$0.10 per common share for two additional years.

The proceeds of the private placement will be used for continued commercial roll-out of BUZmob™ mobile services in China, Southeast Asia and Africa, sales and marketing, for the development of new services and for general working capital purposes.

All of the securities issued by the Company pursuant to this private placement are subject to a four-month hold period expiring April 24, 2009.

The Company's insiders subscribed for a total of 3,200,000 units, in which event the private placement is a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ("MI 61-101"). However, the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any common shares issued to or the consideration paid by such persons will exceed 25% of the Company's market capitalization, as per sections 5.5 and 5.7 of MI 61-101. The material change report in respect of this related party transaction was not able to be filed a minimum of 21 days before the close of the private placement, as stipulated in MI 61-101. However, due to the uncertainty of current market conditions, the Company considers the shortened timeframe reasonable and necessary in the present circumstances.

In connection with the private placement, the Company issued 576,000 units of the Company ("Finder's Units"), each Finder's Unit consisting of one common share and one 3-year common share purchase warrant ("Finder's Warrant"), where each Finder's Warrant allows the subscriber to purchase one additional common share at a price of C$0.05 per common share for the first year and C$0.10 per common share for two additional years.

The Company will issue to certain employees an aggregate of 1,129,480 common shares at a deemed price of C$0.03 per share. The shares covered under this issuance represent the amount certain employees purchased for the month of November 2008 under an optional program that enables them to invest in shares of the Company by being paid a percentage of their salary in common shares. These shares will be subject to a four-month hold period and the issuance of these shares is subject to TSX Venture Exchange approval.

About Contec Innovations

We are innovators in mobile technology and services. Our BUZmob™ live mobile services enable mobile operators, media companies and service providers to generate new revenue from dynamic content services that engage mobile audiences worldwide - on every handset, every network, everywhere. BUZmob offers the largest portfolio of live news, sports, entertainment and finance mobile content delivered as a managed service. Headquartered in Vancouver, Canada, Contec Innovations (TSX VENTURE:BUZ) has a sales and support office in Beijing, China. For more information: www.contec.ca or buzmob.com

ON BEHALF OF THE BOARD OF DIRECTORS OF CONTEC INNOVATIONS

Don Lay, President & CEO

The statement made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. Hornet™ and BUZmob™ are trademarks of Contec Innovations Inc.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein.

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