MPAC Industries Corporation
TSX VENTURE : MPN

MPAC Industries Corporation

May 01, 2007 18:30 ET

MPAC Announces Expected Delay in Filing Annual Financial Statements

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 1, 2007) - MPAC Industries Corp. (the "Company" or "MPAC") (TSX VENTURE:MPN) reports that it has been delayed in filing its Annual Audited Financial Statements and Annual Management Discussion & Analysis related thereto for the year ended December 31, 2006 by the required filing date under applicable Canadian Securities laws (NI-51-102), namely April 30, 2007.

In connection with the Company's inability to file the Annual Financial Statements on time, the Company has applied to applicable Canadian securities regulators requesting that a management cease trade order (which restricts trading in the Company's securities by the Company's insiders) be issued as opposed to an issuer cease trade order (which restricts all trading in the Company's securities). As of May 1, 2007, such application has been accepted and a management cease trade order has been issued.

The Company is unable to file the Annual Financial Statements on time due to the cumulative effect of the following factors:

- The Annual Financial Statements cannot be completed without relevant information from the Company's wholly owned subsidiary, "MPAC Madencilik Sanayii ve Pazarlama Limited" (the "Turkish Sub"), a company which was formed and incorporated under the laws of Turkey. This will be the first year that the Turkish Sub is required to be audited and consolidated into the Company's financial statements. Due to factors beyond the Company's control, the Turkish Sub's required financial information is not available at this time. The Company is working toward assembling this information but will not have this complete until after the required filing date of April 30, 2007; and

- The difference in business methods in Turkey and Canada have caused a delay for the Company to assemble and present the financial information relating to the Turkish Sub in a form and format that meets the Canadian audit requirements (Canadian GAAP). This delay is further accentuated by language and procedural differences between the two countries and, consequently, the Company requires more time than originally budgeted for this purpose.

MPAC is working with its auditors to complete the audit of the Company's financial statements as soon as possible. The Company anticipates that it will be in a position to file its annual financial statements and related annual filings by June 20, 2007. Until its annual financial statements and related annual filings are filed, the Company intends to satisfy the requirements of the "Default Status Report" described in Appendix "B" of the CSA Staff Notice 57-301 (the "Policy"), including issuing by-weekly default status reports, as required therein.

As a result of this delay, MPAC's management has asked the British Columbia Securities Commission and the Alberta Securities Commission to put in place a management cease trade order (the "MCTO") covering all persons who are directors, officers or insiders of the Company or who have been directors, officers or insiders of MPAC during the period that the financial statements are being prepared. Pursuant to the Policy, if the Company's annual financial statements and related annual filings are not filed by June 30, 2007, one or all of the British Columbia Securities Commission or the Alberta Securities Commission may impose an issuer cease trade order against MPAC. The Company does not believe that this aspect of the Policy will affect it because it anticipates that it will be in a position to file its annual financial statements and related annual filings no later than June 20, 2007. The MCTO will remain in place until two full business days following receipt by the commissions of all filings that the Company is required to make pursuant to applicable Canadian securities laws.

This news release contains forward-looking statements, which are based on MPAC Industries' current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. The forward-looking statements are not guarantees of future performances and undue reliance should not be placed on them. Actual results may differ materially as a result of any number of factors and uncertainties, many of which factors are beyond the Company's control. MPAC Industries Corporation undertakes no obligation to revise any forward-looking statements except as required by applicable securities laws.

BY THE ORDER OF THE BOARD

Firoz Lakhani, President & CEO

The TSX Venture Exchange neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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