JAZZ GOLF EQUIPMENT INC.
TSX VENTURE : JZZ.A

JAZZ GOLF EQUIPMENT INC.

October 27, 2006 18:28 ET

Jazz Golf Equipment Inc: Press Release

WINNIPEG, MANITOBA--(CCNMatthews - Oct. 27, 2006) - The Board of Directors of Jazz Golf Equipment Inc. ("Jazz") (TSX VENTURE:JZZ.A) today approved the filing by Jazz of a Proposal pursuant to The Bankruptcy and Insolvency Act (the "Proposal"). The Proposal authorizes the sale of the assets of Jazz to 5330319 Manitoba Ltd. (the "Purchaser"), subject to Jazz and the Purchaser entering into a satisfactory purchase agreement and subject to approval of the transaction by the creditors of Jazz and the Court. The Purchaser is a subsidiary of Ensis Growth Fund Inc. ("Ensis"), which is the largest shareholder of Jazz. It is anticipated that the Purchaser will carry on the Jazz business.

It is expected that if the transaction is concluded the creditors of Jazz will be paid all or substantially all of the amounts owing to them other than the debt owed by Jazz to Ensis, which debt will be assumed by the Purchaser. It is not expected that there will be any remaining value in the Company after conclusion of the transaction.

Jazz President and Chief Executive Officer, Mark Breslauer, stated "Jazz has undertaken changes to its operating model and competitive positioning over the past few years which have had benefits to it in a number of areas, however the Company's fourth quarter results for the period ending August 31, 2006 fell short of expectations and have resulted in the Company being in an insolvent position. The Board concluded that given the Company's present situation, the Proposal is the best way for the Company to proceed in that, if the contemplated sale is completed, it will result in all of Jazz creditors receiving full payment of indebtedness owed to them and it will provide jobs for all of existing Jazz staff."

Jazz Golf Equipment Inc. manufactures and distributes, primarily in Canada, high quality golf clubs and accessories.

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

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