CSM Systems Corp.
TSX VENTURE : CKX

CSM Systems Corp.

October 20, 2005 17:57 ET

CSM Systems Corp. Closes Second and Final Tranche of Placement

EDMONTON, ALBERTA--(CCNMatthews - Oct. 20, 2005) - CSM Systems Corp. (TSX VENTURE:CKX) ("CSM"). Further to press releases issued on June 29, 2005 and August 22, 2005, CSM announces that it has completed the second and final tranche of a private placement with the sale of 2,170,469 units for gross proceeds of $325,570. 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 $0.20 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 second tranche of the private placement, CSM has 15,900,907 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 February 21, 2006).

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.

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

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