iWave Information Systems Inc.

iWave Information Systems Inc.

June 08, 2005 12:35 ET

iWave Responds to Press Release

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(CCNMatthews - June 8, 2005) - iWave Information Systems Inc. ("iWave") (TSX VENTURE:IWX) wishes to respond to the press release issued by Metasoft Systems and Skillen & Skillen Associates on June 6, 2005. In the press release Metasoft Systems and Skillen & Skillen Associates indicate that they have submitted a proposal to iWave to purchase shares and warrants of iWave by way of private placement. This proposal was expressed to have been submitted as an alternative to the transactions to be considered by iWave shareholders at the June 24, 2005 annual and special meeting.

As disclosed in iWave's management information circular dated May 25, 2005, on May 25, 2005 iWave entered into a binding agreement with Salesfront Software Inc. for the sale of its Rainforest Publications Inc. subsidiary and related assets. The entering into of the agreement followed by two weeks the first public announcement of the transaction during which time no expression of interest was received from any other party. Prior to entering the purchase agreement, the iWave board also received an independent valuation supporting the proposed purchase price.

As a result of the binding purchase agreement previously entered into by iWave, iWave is not able to consider the alternative proposal provided by Metasoft Systems and Skillen & Skillen Associates and has advised them of this.

Metasoft Systems and Skillen & Skillen Associates are direct competitors to the business presently carried on by iWave. iWave remains skeptical of the motives of Metasoft Systems and Skillen & Skillen Associates in submitting and publicly announcing an offer that, due to the pre-existing sale agreement, had no possibility of succeeding.

iWave strongly disagrees with the statement in the Metasoft Systems and Skillen & Skillen Associates press release that Metasoft believes the recent increase in the iWave share price to be attributable to an anticipated competing offer. Since the proposed transaction was first announced, the trading price of iWave shares has increased and has continued to increase following the issuance of a news release by iWave on May 30, 2005 announcing the entering into of a definitive Asset Sale Agreement and the mailing of proxy materials.

Shares Issued - 5,902,433

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

Contact Information

  • iWave Information Systems Inc.
    Mark McLane
    (902)-894-2659 (FAX)