CSM Systems Corp.
TSX VENTURE : CKX

CSM Systems Corp.

January 12, 2006 16:55 ET

CSM Systems Corp. Announces Proposed Private Placement of Debentures and Appointment of Director

EDMONTON, ALBERTA--(CCNMatthews - Jan. 12, 2006) - In addition to the press released issued on Monday January 9, 2006 regarding the proposed private placement of units, CSM Systems Corp. (TSX VENTURE:CKX) ("CSM") intends to complete a non-brokered private placement of a 5-year convertible unsecured debenture ("Debenture") in the amount of $50,000. The Debenture will accrue interest at prime, payable monthly in arrears. During the entire term of the Debenture, the Debenture may be converted into common shares by the debenture holder, at the option of the debenture holder, at escalating prices starting at $0.30 in years 1 and 2 and ending at $0.41 in year 5. The Debenture may be paid in full by CSM at any time prior to maturity without penalty provided that, prior to payout, the debenture holder will be given 10 days notice during which time the debenture holder may convert the Debenture.

Proceeds of the private placement will be used for marketing, product development and for general operating activities. The completion of the private placement is subject to regulatory approval.

CSM is also pleased to announce the appointment of Mr. Gervin Antypowich as a director of the Corporation. Mr. Antypowich is a 50-year-old businessman who has been in the forest industry business for 30 years, and his company is one of the largest logging contractors for Weyerhauser in Alberta. Mr. Antypowich also has several other companies either involved in logging or involved in commercial real estate.

Mr. Antypowich joins John Putters, Thomas Lett, Ronald Jackman and Wallace McNeil as directors of CSM.

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

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