Motionsphere Capital Inc.

July 18, 2007 12:51 ET

Motionsphere Capital Inc. Signature of a Letter Agreement with ColbaNet Inc. ("Colba")

MONTREAL, QUEBEC--(Marketwire - July 18, 2007) - Motionsphere Capital Inc. ("Motionsphere") (TSX VENTURE:MSL), a capital pool company is pleased to announce the signature of an agreement in principle with Colba with a view to carrying out a qualifying transaction, as defined in Policy 2.4 of the TSX Venture Corporate Finance Manual.

Pursuant to the letter agreement, Motionsphere proposes to acquire all the issued and outstanding shares of Colba in exchange for common shares of Motionsphere such that Motionsphere will become the sole shareholder of Colba by a way of a reverse takeover. The purchase of Colba's shares will be established in accordance with the policies and requirements of the TSX Venture Exchange. The agreement in principle is subject to various conditions, including if required by the TSX Venture Exchange an independent valuation confirming the value of the qualifying transaction. Moreover, the TSX Venture Exchange has in no way passed upon on the merits of the proposed qualifying transaction. A subsequent press release will provide details on the proposed qualifying transaction.

Colba is a Canadian firm which provides Internet and telephony services to individual corporate and residential subscribers as well as resellers.

The TSX Venture Exchange assumes no responsibility for the relevance or accuracy of this press release.

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