SIMSMART Inc.
TSX VENTURE : SII

SIMSMART Inc.

October 03, 2005 09:31 ET

Simsmart Inc.: Announcement

BROSSARD, QUEBEC--(CCNMatthews - Oct. 3, 2005) - Not for dissemination or distribution in the United States of America



SIMSMART Inc. ("SIMSMART") (TSX VENTURE:SII) announces:

1. The amendment of the Company Stock Option Plan
2. The grant of 161,800 common shares purchase options to
Mr. Michel Masse
3. The terms of a $300,000 Convertible Debenture Offering
4. The $210,000 loan from the Directors term extension

1. That it's Stock Option Plan will be amended to reflect the
following change:

To increase the maximum number of Shares reserved for issuance,
from 10% to a fixed number of shares which is 987,249 with no
vesting provisions and with the ability to grant stock options at
the Market Price without a hold period;

2. The grant of 161,800 Common Shares Purchase Options to Mr. Michel
Masse, President and Chief Executive Officer of the Corporation,
in replacement of the 200,000 Common Shares Purchase Options
granted on December 1st 2000 and expiring on December 1st 2005.
Each of the new granted options entitles its holder to purchase
one Common Share for $0.30 until December 1st 2010;

3. The Company is in the process of completing a convertible
debenture for a maximum amount of $300,000 to an insider. The
debenture is guaranteed by a mortgage on all assets of the
Company. The funds will be cashed in blocks of $10,000 according
to the needs of the Company. The term of the debenture is two (2)
years and the funds are convertible into 1,000,000 common shares
at a price of 0.30 cents per unit. Also attached to the debenture
are 1,000,000 share purchase warrants. Each share purchase
warrant may be exercised for a period of two (2) years from the
date of issuance at an exercise price of 0.30 cents. The
convertible debenture bears interest at 12% per annum payable
monthly.

4. The expiring date of the $210,000 Directors loan has been extended
for a period of one (1) year under the same conditions. Moreover,
the attached 279,999 warrants at $0.105 will now expire on
December 10, 2006, and the other block of 533,331 warrants at
$0.14 will now expire on December 22, 2006.


Each item of this announcement is subject to final acceptance by
the TSX Venture Exchange and the shareholders will be asked to
ratify and approved these items at the Special Annual Meeting.

About Simsmart:

Simsmart Inc. has developed a line of advanced computer simulation and modeling applications. The corporation's proprietary Simsmart™ software allows designers, engineers and plant managers to simulate the inner workings of highly complex systems and processes, in order to validate and optimize their designs, productivity and cost control. Simsmart Inc. also offers a full line of engineering services in parallel with its Simsmart ™ product and activities.

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

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