OKALLA CORP.
TSX VENTURE : AOK

OKALLA CORP.

October 17, 2006 14:14 ET

Okalla Corp.: Update on Acqusition of Web Transaction Services, Inc.

CALGARY, ALBERTA--(CCNMatthews - Oct. 17, 2006) - Okalla Corp. (TSX VENTURE:AOK) ("Okalla") announced today that due to the possible implications of new US legislation in potentially effecting the online payment processing industry, Okalla Corp. will not be extending the date for entering into a formal agreement under the terms and conditions of a letter agreement dated May 31, 2006 with Web Transaction Services Inc. ("WTS") of Austin, Texas. Under this agreement, and as previously disclosed, Okalla had intended to acquire all of the issued and outstanding common shares of WTS.

"Although the ramifications of this new legislation have caused us to re-examine some aspects of an acquisition of WTS, it remains an important part of the growth strategy for Okalla. We are intent on resolving the issues related to the new legislation and to renewing efforts toward our original acquisition objectives." said Clyde Beattie, President and CEO of Okalla Corp. "We expect this US payment processing legislation to have a minimal effect on the business of WTS and no direct effect on the re-emerging business of Probilling. In addition, we are actively seeking out new opportunities which may arise for Okalla from new market conditions resulting from the new regulations".

About Okalla

Okalla is a publicly traded online technology company listed on the TSX Venture Exchange under the trading symbol AOK. Through its wholly owned subsidiary, Probilling Inc., the company provides eCommerce payment processing solutions and transaction services to web merchants. Vesa Software Inc. another wholly owned operating subsidiary, develops, licenses and provides hosting and support services for specialized web applications.

All statements other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Okalla Corp. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

The TSX Venture has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

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