International Water-Guard Industries Inc.

International Water-Guard Industries Inc.

March 23, 2005 18:15 ET

IWG Offers Private Placement, Completes Financial Restructuring


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTERNATIONAL WATER-GUARD INDUSTRIES INC.

TSX VENTURE SYMBOL: IWG

MARCH 23, 2005 - 18:15 ET

IWG Offers Private Placement, Completes Financial
Restructuring

BURNABY, BRITISH COLUMBIA--(CCNMatthews - March 23, 2005) -
International Water-Guard Industries Inc. (TSX VENTURE:IWG) is pleased
to announce a non-brokered private placement for up to 15 million shares
at a price of $0.08 per share. The private placement forms part of IWG's
financial restructuring activities designed to strengthen the company's
financial position. A cash finder's fee and finders warrants related to
this placement will be paid. Some IWG insiders will participate in this
placement.

As previously disclosed, the company has sold its industrial/ commercial
water treatment assets to Violetta Industries of Vancouver. The
unadjusted sale price was $300,000. Funds from this divestiture were
used to pay down creditors in negotiated settlements for payables and
notes outstanding. In addition, a settlement has been reached with the
holder of a promissory note for a cash payment and the issuance of
225,000 shares.

"The full impact of these negotiated settlements will be indicated in
our upcoming second quarter financial results," said David Fox, IWG's
President and CEO. "For now, I think it's important to point out that
this is a major step in our restructuring plan, and coupled with the
private placement, puts us in an excellent position to capitalize on our
market lead in aircraft water treatment."

International Water-Guard Industries Inc. is a Canadian aerospace
company focusing on aircraft potable water treatment and full water
system solutions. IWG has expertise in all aspects of water treatment,
and has the products and know-how to provide high quality water for
passengers and crew, while saving weight and space for the aircraft
operator.

On behalf of the Board of Directors

International Water-Guard Industries Inc.

D. C. Fox, President & CEO

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    International Water-Guard Industries Inc.
    D. C. Fox
    President & CEO
    (604) 255-5555 or Toll Free: 1-800-667-0331
    (604) 255-5685 (FAX)
    www.waterknowledge.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.