Grey Horse Corporation

Grey Horse Corporation

February 28, 2005 09:00 ET

Grey Horse Capital Reports Second Quarter Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GREY HORSE CAPITAL CORPORATION

TSX VENTURE SYMBOL: GHC

FEBRUARY 28, 2005 - 09:00 ET

Grey Horse Capital Reports Second Quarter Results

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2005) -

Quarter includes first month of operations following acquisition of
Equity Transfer Services Inc.

Grey Horse Capital Corporation (TSX VENTURE:GHC) (Grey Horse Capital or
"the Company") today reported its financial results for the second
quarter and six-month period ending December 31, 2004.

These results include the first reporting period subsequent to the
Company's December 2, 2004 acquisition of Equity Transfer Services Inc.
Substantially all of the revenue earned by the Company during the
three-month and six-month periods was earned subsequent to this
acquisition in the month of December 2004. Consequently, in addition to
providing three-month and six-month financial results, the Management
Discussion and Analysis includes unaudited results for the month of
December to enable a better understanding of the Company's current
operations.

For the one-month period ending December 31, 2004, Grey Horse Capital
reported net income of $88.3 thousand and operating earnings of $171.1
thousand on revenue of $456.2 thousand. There were 3,119,994 common
shares outstanding at the end of this period.

For the three-month period ended December 31, 2004 the Company reported
a net loss of $48.5 thousand and operating earnings of $59.3 thousand on
revenue of $456.2 thousand. Basic loss per share amounted to ($0.02) per
share.

For the six-month period ended December 31, 2004 the Company reported a
net loss of $86.6 thousand and operating earnings of $21.2 thousand on
revenue of $457.3 thousand. Basic loss per share amounted to ($0.04) per
share.

"Grey Horse Capital remains very pleased with the acquisition of Equity
Transfer Services, which has a well deserved reputation for being
accessible, responsive, and cost-effective in the delivery of transfer
agent services. The previous owners built a solid franchise and the
staff is second to none in the industry," states Kevin Reed, President
and CEO of Grey Horse Capital. "In coming months, the management team
will focus on growing the core business and on securing solid channel
partners to offer value-added services to our customers," commented Mr.
Reed."

About Grey Horse Capital Corporation

Through its wholly owned subsidiary, Equity Transfer Services Inc., Grey
Horse Capital provides transfer services to small and mid-market issuers
in the North American capital markets. As at February 28, 2005 the
Company had 3,133,327 common shares issued and outstanding.

Certain information included in this press release is forward-looking
and may involve risks and uncertainties. The results or events predicted
in these statements may differ materially from actual results or events.
Factors that might cause a difference include, but are not limited to,
competitive developments, risks associated with Grey Horse Capital's
growth, the state of the financial markets, regulatory risks and other
factors. Unless otherwise required by applicable securities laws, Grey
Horse Capital disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. More detailed information about potential
factors that could affect Grey Horse Capital's financial and business
results is included in public documents Grey Horse Capital files from
time to time with Canadian securities regulatory authorities.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Grey Horse Capital Corporation
    Kevin Reed
    President
    (416) 361-0930
    or
    Genoa Management
    Ali Mahdavi
    (416) 962-3300 ext. 225
    amahdavi@genoa.ca
    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this press release.