Texada Software Inc.
TSX VENTURE : TXS

Texada Software Inc.

September 06, 2005 16:49 ET

Texada Software Closes $600,000 in Additional Financing

TORONTO, ONTARIO--(CCNMatthews - Sept. 6, 2005) - Texada Software (TSX VENTURE:TXS), announced today it has completed a financing from new investors, existing shareholders, directors and senior management for a private placement of units (the "Units") which resulted in proceeds of $600,000. The company will use the funds to develop a new version of its software. The company will file a material change report less than 21 days before the closing date. The company has already begun to develop the next version of its software and requires the funds immediately.

Each Unit consists of $1,000 principal amount 8% senior secured convertible debentures (the "Debentures") and 10,000 warrants (the "Warrants"). The Debentures will mature on June 30, 2007 (the "Maturity Date") and are convertible at the holder's option into common shares (the "Common Shares") of Texada at any time on or prior to the Maturity Date at a conversion price of $0.10 per Common Share. Each Warrant entitles the holder to acquire one Common Share at any time up to the Maturity Date at an exercise price of $0.11 per Common Share. The securities issued under this placement will be subject to a hold period until December 27, 2005.

Existing or new major shareholders of Texada participating in the financing are as follows: (i) Discovery Capital Corporation ("Discovery") purchased 120 Units of Texada Software Inc. ("Texada") and upon conversion of the Debentures and exercise of the Warrants comprising all of the Units, Discovery would have ownership and control or direction over approximately 21.7% of the issued and outstanding Common Shares of Texada; (ii) 1610488 Ontario Ltd., a company wholly-owned by Iqbal Kassam, a director of the Company, purchased 120 Units and upon conversion of the Debentures and exercise of the Warrants comprising all of the Units, Mr. Kassam would have ownership and control or direction over approximately 14.8% of the issued and outstanding Common Shares of Texada; and (iii) LTF Investment Holdings Inc. ("LTF") purchased 250 Units of Texada and upon conversion of the Debentures and Warrants comprising all of the Units, LTF would have ownership and control or direction over approximately 12.5% of the issued and outstanding Common Shares of Texada.

Texada also announced today that its current operating credit facility will not be renewed as of October 30, 2005.

About Texada Software Inc.

Texada provides complete Enterprise Asset Management Software primarily to the Equipment rental industry. Over 400 customers worldwide, including Volvo Rents and Stephenson's Rental Centers use Texada software to manage almost all aspects of their equipment rental business. For more information, visit www.texadasoftware.com .

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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