SelectCore Ltd.
TSX VENTURE : SCG

SelectCore Ltd.

July 09, 2007 16:52 ET

SelectCore to Acquire Canquest Communications

WINDSOR, ONTARIO--(Marketwire - July 9, 2007) - Further to the news release dated June 18, 2007, SelectCore (TSX VENTURE:SCG) today announced that it has entered into a definitive agreement to purchase substantially all of the assets of Canquest Communications (Canada) Inc. and its subsidiary, Canquest Communications (Wireless) Inc.

On July 3rd, the shareholders of Canquest unanimously approved the sale. SelectCore and Canquest are arms-length parties and the closing of the transaction is subject to TSX and regulatory approval, financing and court approval on Bulk Sales Act compliance. The aggregate purchase price of $4 million will be paid by way of $1.8M in cash, $1.5M in stock and assumption of approx. $700K in net liabilities. In addition, SelectCore will issue to Canquest 500,000 warrants which will expire after 18 months. Both the stock and warrant issue price will be determined on closing using the average of the previous ten business days closing price.

Canquest, based in Chatham, Ontario, is one of Canada's largest privately-owned prepaid telecommunications and transaction-based technology companies. With annual revenues in excess of $25 million, they are a well-respected leader in the industry, servicing many of Canada's largest incumbent phone companies and national-chain retailers.

David Parkes, Chairman of SelectCore, stated "this is an accretive acquisition that completes the picture of SelectCore becoming a fully-integrated prepaid telecommunications provider". Keith McKenzie, CEO of SelectCore, further commented "With Canquest, we're adding a great team of technical experts who have developed leading technology platforms for the prepaid telecommunications industry. Leveraging their infrastructure will enable us to launch new offerings in high-growth areas of wireless and IP. We are also anticipating a multitude of operational efficiencies and cost savings moving forward."

About SelectCore:

SelectCore (TSX VENTURE:SCG) is in the business of providing prepaid telecommunication solutions to credit-challenged consumers across Canada. The offerings, which include wireless, home phone, long distance and broadband internet, are marketed through the company's nation-wide retail distribution channel. In addition to its long-term partnerships with Canada's major carriers, the company also maintains its own telecom network infrastructure. Profit 100 ranked SelectCore one of Canada's fastest-growing companies in 2006 and again in 2007.

This news release contains projections and other forward-looking statements regarding future events. Such statements are predictions, which may involve known and unknown risks, uncertainties and other factors, which could cause the actual events or results and objections to differ materially from those expressed.

The TSX Venture Exchange has 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 release.

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