Momentum Advanced Solutions Inc.

Momentum Advanced Solutions Inc.

June 05, 2007 14:02 ET

Momentum Receives Final $2.3 Million From VAR Asset Sale

Secures $2.0 million Credit Facility and Hires M&A Advisor

TORONTO, ONTARIO--(Marketwire - June 5, 2007) - Momentum Advanced Solutions Inc. (TSX:WWW), ("Momentum" or the "Company"), a leader in the emerging world of Internet outsourcing, today announced that it had received $2.3 million representing the final installment of proceeds from the sale of its VAR business previously announced on December 1, 2006.

In addition, the Company today completed all documentation required to access a $2.0 million credit facility from a leading Canadian financial institution. With cash on hand, the above represents over $6.3 million in financial availability.

The Company is considering various options with respect to its financial resources to maximize shareholder value. These include but are not limited to: expansion capital for organic growth, a share buyback and/or strategic acquisitions. In connection with the latter, the Company has signed an agreement with a respected M&A firm to solicit potential acquisition candidates.

"Although we will consider all options to maximize shareholder value, we are focused on ensuring that we have the appropriate capital resources to sustain the anticipated level of demand in our Managed Service business", stated Sheldon Pollack, CEO of Momentum. "Revenue from this line of business continues to demonstrate significant year over year growth".

Forward Looking Statement

Readers should take note that certain statements in this press release are forward-looking and may not give full weight to all of the potential risks and uncertainties. These forward-looking statements include statements that are subject to risks and uncertainties. Forward-looking statements are subject by their nature to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the forward-looking statements. Any forward-looking statements speak only as of the date made. The company is not undertaking to update any information in the foregoing reports until the effective date of its future reports required by the securities laws.

About Momentum Advanced Solutions Inc.

Momentum is a leader in the emerging world of Internet outsourcing. Momentum's Internet outsourcing solutions provide our customers with the Innovation, Integration and Operations expertise required to allow them to successfully reduce costs and/or improve productivity by outsourcing to us any or all of their mission critical web-based applications and Managed Internet infrastructure. Headquartered in Markham, Ontario the Company has offices in Ottawa, Windsor and Toronto. Momentum Advanced Solutions is publicly traded on the Toronto Stock Exchange and trades under the symbol "WWW".

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