iForum Financial Network Inc.

iForum Financial Network Inc.

March 22, 2005 13:07 ET

iForum Signs Letter of Intent




MARCH 22, 2005 - 13:07 ET

iForum Signs Letter of Intent

MONTREAL, QUEBEC--(CCNMatthews - March 22, 2005) - iForum Financial
Network Inc. ("iForum") (TSX Venture:IFF) announces that it has signed a
letter of intent with Quorum Secured Equity Trust, formerly known as
Quorum P.I.P.E. Trust ("Quorum") by which Quorum will invest a total
amount of $1,000,000 CAD (the "Investment") by way of convertible
secured equity debentures (collectively the "Equity Debenture"). The
closing is scheduled to occur prior to March 31, 2005 after final due
diligence, legal documentation completion and final regulatory approval
has been obtained. The Equity Debenture shall have a 4 year and 8 months
term, and bear interest at an annual rate of 7 %. The first 12 months of
interest shall be prepaid on closing and thereafter, the interest will
be payable quarterly. Unless converted prior to the maturity date or
unless default, the Debenture's principal shall be reimbursed by the
Company on the maturity date.

Quorum shall have the right, at its sole discretion and at any time
during the term, to convert some or all of the unpaid interest and
principal of the Equity Debenture into common shares of the Company. The
conversion price for the common shares shall be $0.60 per share, subject
to TSX Venture Exchange Policies providing for an annual 10% increase in
the conversion price from the second anniversary of the closing date
(the "Conversion Price")

In addition, subject to achievement of certain financial conditions, the
Conversion Price may be increased to $1.20 per share.

Subject to certain financial conditions for fiscal year 2007, iForum
shall issue to the Funds, a maximum of 1,200,000 two-year common share
warrants exercisable at a price of $0.60 per share.

Wanda Dorosz, Chief Executive Officer of Quorum Secured Equity Trust,
remarked that: "We are delighted that one of Quorum Secured Equity
Trust's first investments will be made in iForum. Quorum has specialized
in the financial sector for over a decade. It sees that iForum is nicely
positioned in that sector. By bringing together a mutual fund advisor, a
life insurance brokerage capability, a structured product capability,
and its own dedicated investment dealer, iForum can offer a full range
of advisory services for its clients. Its geographic concentration of
200 plus advisors in Quebec and Ontario is also strategically sound.
iForum's senior executives are highly experienced financial services
executives." Dorosz says: "Quorum looks forward to working closely with
iForum to advance its market penetration and product offering in the
medium term."

Joseph Pettinicchio, President and CEO of iForum, said: "We are pleased
with the confidence iForum has received from Quorum by making this
investment. This investment strengthens our financial position and
allows iForum to accelerate our growth objectives. We look forward to
working with Quorum especially by benefiting from their experience in
the financial services sector."

The Quorum Group of Companies ("Quorum") was founded in 1987 under the
leadership of Wanda Dorosz, the current CEO and Managing Partner. It
operates from its headquarters in Toronto with subsidiary offices in
Bermuda and London, U.K. Since 1987, Quorum has successfully invested
over $350 million on behalf of institutions and high net worth
individuals in the growth capital. It recently closed the Quorum Secured
Equity Trust Fund in December 2004, Canada's first dedicated pool for
undervalued publicly-traded Canadian companies.

The principal business and purpose of iForum is the management of
financial services firms including mutual funds, insurance and
securities brokerage, which operate under the name of iForum™, an
independent network of financial advisors in Canada. iForum is listed
under the stock trading symbol IFF on the TSX Venture Exchange. For
more information, visit www.iforumnetwork.com.


Contact Information

    Joseph Pettinicchio, CEO
    General Information:
    Kelly Leonard
    (514) 762-2526
    (514) 762-6535 (FAX)
    The TSX Venture Exchange has neither approved nor disapproved the
    information contained herein.