GridSense Systems Inc.

GridSense Systems Inc.

October 17, 2008 10:23 ET

GridSense Signs Agreement for Transfer of Assets and Sale of Control

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2008) - GridSense Systems Inc. ("GridSense" or the "Company") (TSX VENTURE:GSN) announced today that it has entered into an agreement to transfer all of the shares in its operating subsidiaries, CHK GridSense Pty. Ltd. (Australia) and GridSense Inc. (California), to a private entity owned by certain management and other significant shareholders (the "Management Shareholders") of the Company. Following the transfer of the subsidiary shares, the Management Shareholders will sell their stake in the Company to a newly incorporated British Columbia entity ("Newco"). The Company will continue to be a TSX Venture Exchange listed entity following completion of the transaction and the new shareholder group will be actively seeking new business opportunities, potentially in the resource sector, to vend-in to the Company.

Pursuant to the agreement, the Company will sell all of the shares of its Australian and Californian subsidiaries to GridSense Proprietary Limited ("GPL"), a company owned by the Management Shareholders, in consideration of GPL assuming all of the current liabilities of GridSense and its subsidiaries. Following the completion of the asset transfer, the Management Shareholders will transfer all of their interest in the Company, comprised of 34,851,780 GridSense shares, or 51.9% of the issued and outstanding shares, to Newco for nominal consideration.

The transaction is subject to regulatory and shareholder approval. The Company will be seeking approval of the GridSense shareholders at a meeting of the shareholders which it plans to hold before the end of the calendar year.

About GridSense Systems Inc.

GridSense Systems Inc. is an industry leader in providing remote monitoring and control systems to electric utilities and industrial facilities worldwide. The company's offerings, developed in collaboration with utilities, provide superior power quality/reliability monitoring and demand-side management capabilities. Electric companies deploy these systems primarily in metropolitan, suburban, and rural electricity grids for the detection, prevention, and mitigation of disturbances and irregularities in the supply of electricity. Through its wholly owned subsidiaries in Australia, CHK GridSense Pty Ltd. and GridSense Inc. in USA, GridSense has been serving a growing base of customers for over 25 years, and currently in Australasia, North America, and Western Europe. GridSense is a reporting issuer in British Columbia and Alberta and trades on the TSX Venture Exchange under the symbol "GSN".

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

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