Ensel Corporation

March 17, 2005 11:28 ET

Ensel Announces Sale of Palco and Settlement with Bank


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENSEL CORPORATION

TSX VENTURE SYMBOL: ESC

MARCH 17, 2005 - 11:28 ET

Ensel Announces Sale of Palco and Settlement with Bank

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) - Ensel Corporation
("Ensel") (TSX VENTURE:ESC) is pleased to announce that it has sold its
wholly-owned subsidiary, Palco Telecom Inc. ("Palco") for nominal
consideration plus the assumption of all debts to an arm's length third
party. Ensel had previously decided to wind-up of the affairs of Palco,
which had been unprofitable for some time.

Ensel is also announcing that the claim by the Bank of Montreal, which
was previously announced on December 16, 2004, has been settled. The
Bank of Montreal had made a demand under an unlimited guarantee given by
Ensel in favour of Palco. As a result, Ensel has no further liability to
the Bank of Montreal.

This release may contain forward looking statements within the meaning
of the "safe harbor" provisions of US laws. These statements are based
on management's current expectations and beliefs and are subject to a
number of risks and uncertainties that could cause actual results to
differ materially from those described in the forward looking
statements. Ensel does not assume any obligation to update any forward
looking information contained in this
news release.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Ensel Corporation
    Ray Antony
    President
    (403) 264-6944
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.