April 04, 2011 08:56 ET

Cyberplex Reports on Status of Tsavo Media Debt Obligations

TORONTO, ONTARIO--(Marketwire - April 4, 2011) - Cyberplex Inc. (TSX:CX) a leader in online publishing and customer acquisition strategies today provided an update on the lending arrangements between Orion Foundry (Canada) Inc. ("Tsavo"), an indirect subsidiary of Cyberplex Inc., and its syndicate of lenders led by American Capital, Ltd.

Tsavo's business was purchased in 2010 from American Capital, Ltd. and its affiliates. As previously disclosed, the purchase price for the Tsavo business was satisfied in part through the issuance of vendor take-back notes in a face amount of US$35 million, pursuant to a credit agreement with a syndicate of lenders led by American Capital, Ltd. (the "Credit Agreement"). Pursuant to the Credit Agreement, payment obligations and security apply solely to the Tsavo business.

A payment was to be made under the terms of the Credit Agreement on April 1, 2011. While Tsavo had sufficient funds to meet the April 1st payment obligation, Tsavo has advised American Capital, Ltd. that no further payments will be made under the Credit Agreement pending satisfactory resolution of its ongoing negotiations with American Capital, Ltd. which have been continuing since early in 2011.

The Company has raised with American Capital, Ltd. certain concerns about the transactions that gave rise to the Credit Agreement. Tsavo does not believe that any payments should be made under the Credit Agreement until the identified issues are resolved.

Tsavo hopes to be able to arrive at a negotiated resolution with American Capital, Ltd. Cyberplex will keep the market updated on further material developments.

About Cyberplex

Cyberplex Inc. ( is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, leverages over 300 proprietary web properties and its vast publisher network to efficiently connect advertisers to their most relevant online customers and prospects. By combining high quality publishing initiatives with efficient technology solutions and online marketing expertise, the Company is able to deliver the optimal targeted audience to online advertisers. Cyberplex delivers measurable results that improve advertiser ROI, monetize the value of online properties, and build targeted, loyal online audiences.

Forward-Looking Statements

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

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