Photo Violation Technologies Corp.

Photo Violation Technologies Corp.

November 13, 2008 18:00 ET

Photo Violation Technologies Corp.: Natco Statement of Claim Struck Out by BC Supreme Court

Photo Violation Technologies Corp.'s First Update on Natco Lawsuit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) - Photo Violation Technologies Corp. ("PVT" or "the Company"), a leader in technologically innovative parking solutions, is pleased to announce that Natco International Inc ("Natco") statement of claim has been struck by the BC Supreme Court.

PVT is involved in two litigation matters at present with Natco. Natco (NCII:OTC:BB) is a company listed on the Over The Counter Bulletin Board Exchange. PVT entered a Letter of Intent ("LOI") which included various terms regarding funding and to negotiate a possible Reverse Take Over ("RTO"). The funding conditions of the LOI were not fulfilled, nor did the parties ever reach any consensus on the terms of a definitive RTO agreement. After numerous extensions, PVT claimed default and the LOI was terminated. A claim was filed by Natco against PVT and three other individuals related to PVT alleging breach of the LOI, damages due to the lost RTO, interference with Natco's business, the return of the funds loaned, among various other claims.

During the negotiations with PVT, Natco's stock reached an all time high of $3.30 USD in April 2007, but since Natco's default, its shares have dropped significantly. In the past year it has traded as low as $0.14 USD and closed on November 7, 2008 at $0.33 USD.

PVT's position is that Natco failed to meet its commitments and deadlines despite PVT providing two extensions and the terms of the RTO were never agreed upon. Further, the funds Natco loaned to PVT were repayable in two years, thus PVT is not required to repay any funds until the Spring of 2009. In response, PVT sued Natco for the damages resulting from its failure to meet its obligations as PVT did not receive monies as promised. Natco has filed a defense denying liability and have issued a counterclaim.

PVT and the individual defendants made an application to strike Natco's claim. That application was heard and in a written decision, released on October 3, 2008, Madam Justice Griffin of the BC Supreme Court struck out Natco's statement of claim. Due to its improper pleadings, the Court has dismissed Natco's claims for loss of a bargain (loss of opportunity damages) and loss of share value. In its ruling, the court referred to Natco's pleadings as irrelevant and inadequate, confusing, sloppy, deficient, unnecessary or embarrassing. Natco will now be required to re-file its statement of claim if it is to be heard by the courts.

Photo Violation Technologies Corp. is a private Canadian corporation, with subsidiaries in the US, Europe and Asia that has developed a patented, technologically innovative parking meter system - the PhotoViolationMeter®. Photo Violation Technologies Corp. has successfully forged relationships with Fortune 500 companies and global suppliers such as IBM, Cisco, and Honeywell. These relationships ensure the future success of Photo Violation Technologies Corp. on a global scale. Photo Violation Technologies Corp. is proud to be working with these partners to develop the most sophisticated parking system. Together we are Revolutionizing the Parking Industry® by Perfecting How People Park® through the PhotoViolationMeter® solution. Visit our website for more details on our company.

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 risk and uncertainties. Actual results could be significantly different from those projected.

Contact Information