Optimal Geomatics Inc.
TSX VENTURE : OPG

Optimal Geomatics Inc.

May 31, 2006 17:24 ET

Optimal Geomatics Closes Public Offering Raising CDN$5.2 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - Optimal Geomatics Inc., (TSX VENTURE:OPG) ("Optimal") a geomatics service and software provider to the power line and pipeline utility sector, announced today that it has closed its previously announced fully-marketed offering (the "Offering") of common shares of Optimal for aggregate gross proceeds of approximately CDN$5.2 million. Canaccord Capital Corporation acted as agent for the Offering (the "Agent"). The Agent exercised a portion of the 20% over-allotment option which was exercisable until 48 hours prior to closing, resulting in the issuance of a total of 15,378,250 common shares under the Offering at a price of CDN$0.34 per share.

The Agent received a cash commission of 7% of the gross proceeds of the Offering and non-transferable warrants (the "Warrants") exercisable to acquire that number of common shares equal to 8% of the common shares sold under the Offering. The Warrants are exercisable for 24 months after the closing of the Offering at a price of CDN$0.34 per share.

Optimal has filed a short form prospectus dated May 17, 2006 with the securities regulatory authorities in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario qualifying for distribution the common shares offered under the Offering. The net proceeds of the Offering will be used for working capital purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Optimal Geomatics specializes in providing highly accurate geomatics services and software to a customer-base, which is primarily composed of Electric power line and Gas pipeline utilities. Geomatics is best described as the acquisition, storage, management, retrieval, manipulation, and distribution of spatial or geographically referenced data. Optimal employs a number of acquisition systems, including its proprietary technology, for aerial data acquisition, and applies innovative technology, techniques, and expertise for in-house processing. The Company's unique mapping products and services help utilities reduce cost, improve efficiency, and better-manage their assets by turning raw data into highly valuable geospatial information and engineering reports. Optimal's customers include many of the major utilities across North America and the United Kingdom.

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans, and objectives regarding future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

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

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