ElectroBusiness.com Inc.
TSX VENTURE : EB

ElectroBusiness.com Inc.

August 10, 2005 20:11 ET

ElectroBusiness.com Inc. Announces Proposed Private Placement of Debentures

CALGARY, ALBERTA--(CCNMatthews - Aug. 10, 2005) - ElectroBusiness.com Inc. ("ElectroBusiness") (TSX VENTURE:EB) is pleased to announce that it intends to complete a private placement of secured convertible debentures in the amount of up to $65,000.00. Each secured convertible debenture will be 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 will entitle 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 will be 6 months from the closing date, unless the debenture is extended by written notice from the holder to 12 months from the closing date.

The private placement is subject to approval by the TSX Venture Exchange.

ElectroBusiness will use the proceeds for general working capital.

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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