Fireswirl Technologies Inc.

Fireswirl Technologies Inc.

October 01, 2009 21:25 ET

Fireswirl Announces Closing of Acquisition of Controlling Interest in China's Leading Online Retailer of Mobile Handsets and Accessories

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 1, 2009) - Fireswirl Technologies Inc. ("Fireswirl" or the "Company") (TSX VENTURE:FSW) is pleased to announce that it has completed its previously announced acquisition, through Fireswirl Technologies (Shenzhen) Co., Ltd. ("Fireswirl Shenzhen"), a wholly-owned subsidiary of the Company incorporated under the laws of the People's Republic of China, of 50% of all rights and interests in Beijing Xingchang Xinda Technology Development Co., Ltd. ("XCXD") in consideration for up to 6,058,673 common shares of the Company (the "Transaction").

Pursuant to the terms of the Transaction, the Company acquired 50% of all rights and interests of XCXD, including 50% of any before tax profit, in consideration for up to 6,058,673 common shares of the Company, where 3,029,337 shares were issued on closing of the Transaction and 3,029,336 shares (the "Milestone Shares") are being held under escrow, releasable upon XCXD achieving certain profit milestones for its fiscal year ended December 31, 2009. In the event that the milestones are not reached, the Milestone Shares will be returned to the Company for cancellation. The Company also has the option to acquire the remaining 50% rights and interests of XCXD in 2011 at a price determined in accordance with an agreed multiple of XCXD's pretax profit in 2010, subject to TSX Venture Exchange approval. Fireswirl Shenzhen has the right to exercise, at all meetings of shareholders, 51% of all voting rights attached to the issued and outstanding XCXD shares held by the XCXD shareholders.

All common shares issued pursuant to the Transaction are subject to a hold period that expires four months and a day from the closing date fin accordance with applicable Canadian Securities rules.

About Fireswirl Technologies Inc.

Fireswirl Technologies Inc. (TSX VENTURE:FSW) is focused on creating transactional revenue by engineering electronic and mobile commerce solutions for content providers. The Company's technology has broad applications for those requiring multiple payment interfaces, multi-currency and multi-language capabilities. It can be adapted to any industry seeking high volume or micro-payment solutions involving a wide base of users through internet or wireless applications.

This news release contains certain forward-looking statements that reflect the current views and/or expectations of Fireswirl Technologies Inc. with respect to its performance, business and future events. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, those relating to changes in the market, potential downturns in economic conditions, foreign exchange fluctuations, general demand, competition and our ability to implement our business plans and strategies in a timely manner or at all. These risks, as well as others, could cause actual results and events to vary significantly. Fireswirl Technologies Inc. does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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