Coretec Inc.
TSX : CYY

Coretec Inc.

August 22, 2005 16:30 ET

Coretec Announces the Sale of Real Estate Associated with its Lawrence Facility

TORONTO, ONTARIO--(CCNMatthews - Aug. 22, 2005) - Coretec Inc. (TSX:CYY) today reported that it has received notification that the purchaser of the land and building associated with its Lawrence facility has completed due diligence and issued a waiver of conditions pursuant to the Agreement of Purchase and Sale. The closing of the transaction is anticipated to occur on or before October 3, 2005. The $2.1 million purchase price will be paid with approximately 50% by closing and the remaining 50% twelve months following the vacancy of the building by the Company. The Company will be granted an 18 month period subsequent to closing in which to vacate the building. The real estate is subject to a mortgage held by the Business Development Bank of Canada ("BDC"). Upon closing, a principal repayment of $0.3 million is to be paid to the BDC to release its mortgage on the building.

"The sale of this facility is the first step in our consolidation strategy in Toronto. We are presently in the design and costing phase with respect to our Sheppard facility and expect that we will be in a position to commence site preparations by the end of Q4 2005 with a target occupancy date of Q3 2006. The synergies associated with consolidating into, initially, our Sheppard and Ellesmere sites and, ultimately, entirely at our Sheppard site will be significant in terms of operational efficiencies, cycle time reduction, quality improvement and cost savings. In addition we are anticipating a meaningful increase in our capacity in Toronto as a result of this execution," said Paul Langston, Coretec's President and Chief Executive Officer.

Coretec is one of the leading designers and fabricators of printed circuit boards for the prototype and quick turnaround production segments of the North American and European markets. Coretec distinguishes itself from its competitors by providing complete printed circuit board solutions, including design, advanced prototyping and quick turnaround production across an outstanding range of product technologies.

This news release may include statements about future expectations, plans and prospects that may constitute forward-looking statements. Please be cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties. Actual results or developments may vary materially from those projected or implied in the forward-looking statements as a result of any number of factors, including currency exchange rate fluctuations; variability of operating results; dependence on certain industries; management of growth and expansion; integration of operations; ability to attract and retain key personnel; nature of sales; product complexity and product defects; international operations; material cost fluctuations and limited availability of raw materials; potential loss of customers; competition; industry contraction and slow economic growth; technological change and process development; environmental liability; need for additional financing; product liability; pricing pressure; ability to reduce costs; and other risks listed in Coretec's public disclosure documents and other filings with securities regulatory authorities found at www.sedar.com.

Additional information about Coretec Inc. is available at www.coretec-inc.com.

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