Direct IT Canada Inc.

Direct IT Canada Inc.

September 23, 2005 08:46 ET

Direct IT Canada Inc. Completes Private Placement and Reprices Stock Options

TORONTO, ONTARIO--(CCNMatthews - Sept. 23, 2005) - Direct IT Canada Inc. (TSX VENTURE:DCT; "Direct IT" or the "Company") is pleased to report the closing of its previously announced private placement of up to one million five hundred thousand (1,500,000) common shares of the Company. The Company received $0.05 for each common share for total gross proceeds of CDN $75,000.

The Company paid a finder's fee to two agents, Leede Financial Markets Inc. and First Associates Investments Inc. As a finder's fee, each agent received 150,000 warrants entitling each agent to purchase one (1) common share at a price of CDN $0.10 per share for a period of two (2) years from the date of issuance.

The one million five hundred thousand (1,500,000) common shares and three hundred thousand (300,000) warrants issued pursuant to this private placement are subject to a hold period expiring January 16, 2006.

The proceeds of this private placement will be used for general working capital purposes.

The Company also wishes to clarify and confirm a repricing of its previously disclosed grants of stock options to officers and directors of the Company. An aggregate of eight hundred and fifty (850,000) stock options to officers and directors of the Company are to be exercisable for a period of three (3) years at a price of $0.10 per common share and not $0.05 per common share as previously disclosed.

Forward-Looking Statement

This news release contains forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX Venture Exchange has not reviewed or approved the contents of this news release.

Contact Information