March 16, 2005 14:56 ET

Microtec Implements its Financial Restructuring Plan




MARCH 16, 2005 - 14:56 ET

Microtec Implements its Financial Restructuring Plan

ST-AUGUSTIN, QUEBEC--(CCNMatthews - March 16, 2005) - Les Entreprises
Microtec Inc.(TSX:EMI) is proud to announce today that it has completed
the first step of its financial restructuring plan by closing a
transaction combining its assets with those of Securex Master Limited
Partnership into an income trust, First National AlarmCap Fund (the
"Fund"). The Fund has acquired substantially all of the assets of
Microtec was approved by the Superior Court.

Mr. Raymond Gilbert, chairman of the board and chief executive officer
of Microtec, is delighted at the achievement of this first step of the
restructuring plan that allows for the grouping under one entity of
100,000 Microtec subscribers and 18,000 Securex subscribers. This
transaction ensures the continuity of the operations of Microtec and the
protection of its jobs. It also permits the regrouping of synergies
offering their clientele a fully integrated national company. Management
of Microtec takes this opportunity to thank all its employees as well as
suppliers for their support permitting the realisation of its
restructuring plan.

"The very nature of an income trust structure is perfectly suitable to
the security industry which generates stable cash flows. This new
structure will allow Microtec and Securex to raise the necessary funds
required to finance their development projects" as stated by Mr. Raymond

Microtec also signed today an agreement with the Fund that provides for,
among other things, the exchange of all of the issued and outstanding
shares of Microtec for units of the Fund in the context of an
arrangement to be submitted to the shareholders of Microtec and the
Superior Court for approval.

The transaction concluded with the Fund has enabled Microtec to repay in
full its secured lenders. Microtec is confident that it will propose, in
the course of the coming weeks, a plan of arrangement to its other
creditors ending the proceedings undertaken pursuant to the Creditors'
Companies Arrangement Act.

Solidly established in Canada, Microtec Enterprises Inc. provides a wide
range of security and home automation services that ensure the
protection and well-being of its residential and commercial customers.
The Company is building on its strong position in the industry by
developing new products and services, expanding its subscriber base, and
creating strategic alliances.


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