Labrador Technologies Inc.

Labrador Technologies Inc.

July 22, 2005 13:05 ET

Labrador Technologies Inc.: News Release

CALGARY, ALBERTA--(CCNMatthews - July 22, 2005) -

(Not for dissemination in the United States of America)

Labrador Technologies Inc. (TSX VENTURE:LTX) ("LTI" or "Labrador") is pleased to announce a private placement financing (the "Private Placement") of up to 2,000,000 units of Labrador ("Units"), at a price of $0.10 per Unit, for proceeds of up to $200,000 to LTI. The minimum commitment requirement for the Private Placement of $50,000 has already been met. The minimum investment requirement, per qualified individual, is $10,000 (100,000 Units), and the closing date (the "Closing Date") will be October 31st, 2005. Each Unit will consist of one (1) common share ("Common Share") of LTI, and one-half (1/2) share purchase warrant ("Warrant"), with each whole Warrant exercisable at a price of $0.20 per Common Share, for a period of 12 months following the Closing Date.

Labrador intends to use the proceeds from this Private Placement as general working capital, and for taking advantage of its Labrador® product suite to develop a generic, web-based capability, initially for U.S. and Canadian Oil & Gas Data Centres, as well as for their clients. In essence, LTI has made the strategic decision to return to its roots, as it has had an integral relationship with Oil & Gas Data Centres since 1981. In fact, LTI's Data-Flow Management™ products and services have evolved directly from the essential need of oil and gas companies to retrieve information, from public and proprietary databases, and transport it to selected destinations and products. As a result, the bulk of LTI's overall revenue to date has been associated with its successful, and symbiotic, data center relationships, which it has cultivated, and maintained, since Labrador started doing business 25 years ago.

Product development of this new, web-based capability will take place under the leadership and "hands-on" style of LTI's recently hired C.T.O., Mr. Tim Breitkreutz. In this regard, Mr. Breitkreutz continues to access his extensive professional network, in order to attract highly motivated personnel, who are prepared to work for a combination of base salary and LTI share compensation. Importantly, Mr. Breitkreutz believes that he can exploit the power-base of LTI's Labrador® tools to substantially accelerate the development of this new product. Version 1.0 is scheduled for release in late 2005, and future versions will enable this same capability to be applied to other verticals and industries.

In addition, Labrador will also use its working capital to continue to broaden the appeal of its Labrador® products for both its past, and potential distribution partners, which LTI is currently in discussions with. Accordingly, LTI reserves the right to close the Private Placement, without notice, should revenue from these discussions be realized, such that LTI's improved financial position deems it unnecessary to complete a fully exercised Private Placement.

LTI has no debt, expenses have been further trimmed, and its office lease has been renegotiated. With an additional senior developer hired to start August 2nd, LTI has sufficient cash reserves to operate throughout fiscal 2005. Consequently, this Private Placement, together with a conservative revenue stream forecasted from the new product, allows LTI to have sufficient funds to operate, as a going concern, throughout fiscal 2006, without additional revenue from its ongoing distribution activities. Thus, if LTI is able to consummate effective distribution agreement(s), and combine these successful channels with a revenue producing, web-based initiative in 2006, the company's financial position would change dramatically.

The Private Placement is subject to regulatory approval, and LTI is required to file a formal application with the TSX Venture Exchange Inc. to maintain this price reservation.

About Labrador

Labrador Technologies is in its 25th year of building Labrador connections between the data companies invest in, and all of the destinations that they choose for it. LTI develops data retrieval, reporting and analysis software, specializing in Data-Flow Management™ (DFM™) solutions, primarily for the oil and gas industry.

Whether delivering data to a Labrador application, a third party application, an enterprise service bus, or a portal, Labrador has the ability to retrieve and deliver data to the right place at the right time. Labrador's DFM™ software and services help software vendors, data vendors, and company developers deliver data to their target audiences by "plugging" users in and minimizing the need for costly, ongoing maintenance intervention.

Labrador ( trades on the TSX Venture under the symbol "LTX."

This press release may include forward-looking statements including opinions, assumptions, estimates and expectations of future developments, cash flow and earnings. When used in this document, the words "believe," "forecasted", "estimate," "expect," "intend," "may," "project," "plan", "will", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although LTI believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, operating risks, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by LTI with securities regulatory authorities.

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

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