CSM Systems Corp.
TSX VENTURE : CKX

CSM Systems Corp.

August 22, 2005 16:25 ET

CSM Systems Corp. Closes First Tranche of Placement

EDMONTON, ALBERTA--(CCNMatthews - Aug. 22, 2005) - CSM Systems Corp. (TSX VENTURE:CKX) ("CSM"). Further to press releases issued on June 29, 2005, CSM announces that it has completed the first tranche of a private placement with the sale of 952,331 units for gross proceeds of $142,849.65. Each unit consisted of 1 common share in the share capital of CSM and 1 non-transferable common share purchase warrant. Each warrant entitles the holder thereof to acquire 1 additional common share at a price of $0.15 per common share for a period of two years from the date of issuance of such warrant. After giving effect to the closing of the first tranche of the private placement, CSM has 13,730,438 common shares issued and outstanding.

The securities sold pursuant to this tranche of the private placement are subject to statutory resale restrictions for a period of 4 months from the date of issuance (until December 20, 2005).

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

One director of CSM participated in the private placement by purchasing 333,333 units. Pursuant to TSX Venture Exchange Policy 5.9, the private placement may therefore be classified as a "related party transaction." CSM has determined that exemptions from various requirements of Policy 5.9 are available.

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

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