Redex Inc.

Redex Inc.

August 14, 2006 11:09 ET

Notice to Shareholders: Redex Inc. Announces New Mortgage Financing Subsidiary

MONTREAL, QUEBEC--(CCNMatthews - Aug. 14, 2006) - Michel Piette is pleased to announce that Redex (TSX VENTURE:RDX) is establishing Redex Mortgage Corp., as a wholly owned subsidiary of Redex, with the purpose of providing competitive mortgage financing to its retail clients. "We are going vertical" says Mr. Piette. "In the very near future Redex will be in control of the entire transformation process of its properties; from acquisitions to renovations, conversion to sales and now the financing of our own clients."

As Redex enters into the next phase of its development, which includes an aggressive property acquisition campaign, Redex is negotiating both debt and equity financing in order to meet its' expansion targets and ensure continued growth.

Based on the Company's recent track record of having sold 94% of the units in the last property they converted (within the first year) and the fact the sum total of the units of their Montpellier project are valued at over $30,000,000 by Valiquette Martin Montmarquet & Associes (Professional Appraisers) combined with the fact that Redex has client commitments representing more than 50% of said units, projected revenues for 2006 are estimated at $32,000,000, up from $7,668,744 in 2005.


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About Redex Inc.

In recent years, Redex had become a leader in real estate recovery and restructuring. Turning its attention to the future, Redex is now committed to becoming the leader in the art of converting residential rental housing into co-ownerships.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release

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