ElectroBusiness.com Inc.
TSX VENTURE : EB

ElectroBusiness.com Inc.

August 15, 2005 21:07 ET

ElectroBusiness.com Inc. Announces Closing of Private Placement of Debentures

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - ElectroBusiness.com Inc. ("ElectroBusiness") (TSX VENTURE:EB) is pleased to announce that further to the news release dated August 10, 2005, the private placement of secured convertible debentures in the amount of $65,000.00 has closed subject to TSX Venture Exchange final approval. Each secured convertible debenture is convertible into one unit of ElectroBusiness, each unit consisting of one common share and one common share purchase warrant for each $0.22 of principal amount (excluding accrued but unpaid interest) of the debenture converted during the term of the debenture. Each warrant entitles the holder to purchase one common share for 6 months after the closing date at an exercise price of $0.22 per common share. Interest shall accrue on the principal amount at a rate of 10% per annum, compounded annually, with interest to be paid at conversion or on the maturity date. The maturity date of the debentures is 6 months from the closing date, unless the debenture is extended by written notice from the holder to 12 months from the closing date. All securities issued in connection with this private placement are subject to a four-month hold period.

ElectroBusiness will use the proceeds for general working capital.

Insiders, and related parties to insiders, of ElectroBusiness have subscribed for debentures in the total amount of $65,000.00. ElectroBusiness has determined that exemptions are available from TSX Venture Exchange Policy 5.9 to the issuances to such insiders.

About ElectroBusiness

The ElectroBusiness secure document exchange service connects users to a secure world allowing the exchange of any type of information with any number of locations, partners, suppliers or customers. The ElectroBusiness service is easy to use, affordable and flexible, improving productivity and profits.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy of this release.

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